Ask Larry

Why Doesn't My Record Show A Higher Benefit At Age 68 vs. Age 67 & 1/2?

IN AUGUST 2016, I TURNED 68 YRS. OLD. I HAVE NOT APPLIED FOR SOCIAL SECURITY. HOWEVER, I ESTABLISHED AN ON-LINE SOCIAL SECURITY ACCOUNT IN 2015. IN FEB. 2016 AT AGE 67 & 6-MONTHS, I PRINTED OUT AN EARNINGS BENEFIT STATEMENT. SIX MONTHS LATER IN AUGUST 2016 AT AGE 68, I PRINTED OUT ANOTHER BENEFIT STATEMENT & THE BENEFIT WAS THE SAME AMOUNT AT AGE 68 AS IT WAS AT AGE 67 & 6-MONTHS. I UNDERSTAND THAT AFTER AGE 66, I AM SUPPOSED TO RECEIVE A DELAYED CREDIT OF 8% PER YEAR. CAN YOU TELL ME WHY THAT THE 8% DELAYED CREDIT APPEARS NOT TO HAVE BEEN ADDED TO MY ACCOUNT WHEN I TURNED 68? THE ONLY THING I COULD FIGURE IS THAT ALTHOUGH I HAD TURNED ANOTHER YEAR OLDER & SHOULD BE ELIGIBLE FOR AN 8% DELAYED CREDIT, I ASSUME THAT THIS CREDIT WILL NOT SHOW UP ON MY EARNINGS STATEMENT UNTIL 1/01/2017. CAN YOU SHED ANY LIGHT ON THIS? ALSO, WILL THE CURRENT EARNINGS STATEMENT THAT YOU GET ON-LINE REFLECT ANY COLA'S THAT HAVE BEEN ADDED TO YOUR ACCOUNT IN PRIOR YEARS? ALSO, DOES COLA'S START GETTING ADDED TO YOUR ACCOUNT AT AGE 62 OR ADDED AT AGE 66 (FRA)?

Hi,

Between full retirement age and age 70, delayed retirement credits (DRC) are credited on a calendar year basis. For example, if you attain age 68 in July and apply for benefits that month, you will initially be credited only with the DRCs earned through the prior December. The additional credits for the first 6 months of the calendar year in which you applied would be added effective with the following January.

Cost of living adjustments (COLA) are credited beginning with the end of the year in which you attain age 62, and should be included in the benefit statements you receive online and in the mail. However, assumed future year COLAs are not included in the benefits statements issued by Social Security.

Best, Jerry

Posted: 
Sep 22 2016 - 12:15pm
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