Hello Larry, I'm approaching age 66 in two months and am planning to file and suspend so as to receive maximum benefits at age 70. If during that four year period I need to take my full retirement benefits before age 70, does SSA prorate evenly the amount received? For example, if I file for full benefits at age 68, is the estimated incremental amount received exactly 50% of the difference between what the SSA would grant at age 66, and what it currently estimates at age 70? The SSA staff at our local office don't have to a way to calculate my benefits at age 68.

Hi,

Yes, if you start drawing your benefits at age 68 they will be 16% higher than your age 66 benefit, and 16% lower than your age 70 benefit. Delayed retirement credits (DRC) are credited based on the number of months of non-payment starting with full retirement age, at a rate of 2/3rds of 1% per month.

One tricky thing, however, is that if you start drawing your benefits prior to age 70, DRCs are initially credited only through December of the year prior to the month benefits start. Thus, say you're born in July, and start your benefits in the month your turn age 68. Your initial benefit amount will only include credit for 18 DRCs, or 12%. Then, effective with the check for the following January, the additional 6 DRCs for January through June of the year you started drawing would be credited, raising the total increase to 16%.

Best, Jerry