if i dont take ss at 66 how much does it grow ?i might wait another year , im getting my pension

Hi,

Delayed retirement credits (DRC) add 2/3rds of 1% to a person's benefit rate for each month that they delay collecting Social Security retirement benefits between full retirement age (FRA) and age 70. That amounts to an increase of 8% for each year they delay starting benefits.

However, if you apply for benefits between full retirement age (FRA) and age 70 and effective with any month other than January, you would initially only receive credit for any delayed retirement credits (DRC) you earned through December of the year prior to the year you claim benefits. Any remaining DRCs earned in the year that you claimed benefits are credited effective with your benefit payment for the following January.

For example, if a person reaches their FRA of age 66 in July 2020 but delays starting their Social Security retirement benefits until July 2021, their initial benefit rate would only include credit for 6 DRCs (i.e. July through December 2020). In other words, their initial benefit rate would only be 4% higher than their FRA rate, not 8%. The additional 4% increase for the months January through June 2021 would not be credited until effective with the person's benefit payment for the month of January 2022. Furthermore, my understanding is that the automated process used to credit additional DRCs is only run every other year, so it could be awhile before such a person would actually see the additional 4% increase. Social Security would pay any back pay due once they process the recomputation, however.

You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully explore all of your filing options so that you can determine the best possible strategy for claiming your benefits.

Best, Jerry