Thank you for helping us to understand SS. I turn 66 in March 2018. I will continue working until August. SS estimates my monthly payment at full retirement age to be $1,122. Can you tell me how much it will go up each month I wait to begin collecting my SS? I have seen the formula in the column, but after much searching through past columns I can't find it. I want to know if it would be worth it to wait to take my SS until August 2018 or start at full retirement age. And when my husband turns 66 in June of 2018 would he get half of my rate from August or at my full retirement age? Thank you again for your help. Waiting

Hi,

Delayed retirement credits (DRC) accrue at a rate of 2/3rds of 1% for each month that you don't draw retirement benefits from full retirement age (FRA) until age 70. So, if you reach FRA in March and don't claim benefits until August, your benefit rate will be roughly 3.33% higher. However, Social Security initially only adds DRCs on a calendar year basis, so your monthly rate would not reflect the additional 3.33% increase until your payment for the month of January 2019. Furthermore, my understanding is that the automated process for adding DRCs is only done every other year, so it could be close to 2 years before you would actually see the increase. Social Security would pay you any back pay due retroactive to January 2019, though.

Your husband couldn't draw spousal benefits on your record for any months prior to the month that you choose to start drawing your benefits, and his unreduced spousal rate would be 50% of your full retirement age rate (PIA) regardless of what month you start drawing your benefits. In other words, he would not get a higher spousal rate if you wait past FRA in order to receive DRCs. But, if and when your husband receives benefits on his own record his own PIA would be subtracted from the spousal rate, which could reduce the spousal rate to zero.

You and your husband should strongly consider using our maximization software to compare your various filing options in order to determine your best possible strategy.

Best, Jerry