Hi Larry, question: I have passed my 100% eligibility for a full 100% monthly paycheck. Born 3.55. So my maximum kicked in May 2021. I want to wait until my 67th Birthday to start to collect. How does SS work here Do I see the 8% increase at the beginning of 2021 (my calendar year start toward my 67th in March, or is it delayed to my 100% anniversary in May, or do I get a retroactive check later in the year?

Hi. When a person starts drawing their Social Security retirement benefits between their full retirement age (FRA) and age 70, Social Security initially only gives them credit for any delayed retirement credits (DRC) that they earned through December of the year prior to the year they start collecting. Any additional DRCs earned in the year that the person starts drawing their benefits are subsequently credited effective with their payment for the following January.

For example, if you file for your benefits effective with May 2022, you'll initially only be credited with the DRCs you earned through December 2021. Then, effective with your payment for January 2023 you'd be due an increase in your benefit rate to credit the additional 4 DRCs you earned from January through April 2022. However, my understanding is that such automated recomputations are only done every other year, so you may not actually see the rate increase until the latter part of 2024. You would, though, be paid any back pay due when the recomputation is processed.

So, your benefit rate would increase by 8% if you wait until 12 months after reaching FRA to start drawing your benefits, but you wouldn't actually be due the full 8% increase until January 2023. If you start drawing sooner, though, you'd receive fewer DRCs and a lower permanent benefit rate. You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully explore all of you options so that you can determine the best strategy for maximizing your benefits.

Best, Jerry