I turned 66 on January 1st and according to what I understand from SSA, that is my FRA. I didn't retire until April 2nd. After that, it took me a month to decide I didn't want to collect a lump sum for retroactive benefits and wanted to add two-thirds of a percent for each month I delayed filing. I bit the bullet and applied online on May 2nd. When choosing a benefit start date, it defaulted to 5/21 and told me I had two other choices, 12/20 and 9/21. I didn't know what to do, so I chose 9/21. Nothing ever came up about a retroactive benefit/lump sum option. What have I done to myself? Thanks for taking my question.

Hi. It doesn't sound like you've done anything that's necessarily bad, but it's not too late to change your mind and choose a different month to start your benefits. Starting your benefits effective with September 2021 would mean that you'd get your first payment in October. If you turned 66 on January 1 2021, Social Security would consider you to have reached full retirement age (FRA) in December 2020. So, by choosing to start your benefits effective with September 2021 your eventual benefit rate will include credit for 9 months of delayed retirement credits (DRC). Each DRC adds 2/3rds of 1% to your benefit rate, which would mean a total increase of 6% if you start your benefits with September.

However, your benefit rate initially wouldn't include credit for all of your DRCs. When you file for benefits between FRA and age 70, you're initially only credited with the DRCs you earned through December of the prior year. In your case, that would be 1 DRC (i.e. December 2020). You couldn't be credited for your other 8 DRCs (i.e. January thru August 2021) until your benefit payment for January of 2022.

It sounds like you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze your options so that you can choose the best possible strategy for maximizing your benefits. If you decide to change your month of election to start your benefits, you would need to contact Social Security and either amend your application or submit a signed request to change to a different month to start your benefits.

Best, Jerry