Is payment benefit calculated on when you apply or when you receive your first payment? My birthdate is 6/9/1954. I'd like to receive my first payment in January 2021 at the increased rate for waiting 6 months past FRA. When should I apply? Thank you so much!

Hi,

The timing of your application is irrelevant to the computation of your benefit rate. If you want your delayed retirement credits (DRC) to be used in the initial calculation of your benefit rate, you should choose January 2021 as your month of election (MOE) to start your benefits. You wouldn't get your first payment until February in that case, though, because Social Security pays benefits a month behind.

Choosing January 2021 as your MOE would actually give you credit for 7 DRCs (i.e. June 2020 through December 2020). If you choose December 2020 as your MOE you'd eventually be credited with 6 DRCs effective with your payment for January 2021, but no DRCs would be credited on your initial payment for the month of December 2020.

You can file your application as early as 4 months prior to your MOE, or as late as 6 months after your MOE. Before applying, though, you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing your benefits.

Best, Jerry