Will My Benefit Really Increase If I Delay Past FRA?

Jul 1 2016 - 6:00pm

I am 65 and plan to work past age 70, is it true that i can apply to receive my SS benefits but have them kept for me with 8% interest, collecing the money and interest at age 70? If so, will I then obtain my SS rate at the age I would qualify at 65 or at age 70? Thanks, Amy

Amy, what you're referring to are delayed retirement credits. You earn these by delaying filing for your retirement benefit past your full retirement age (FRA), which is 66 for you, up to age 70. You do not need to apply first to do this. You can simply delay filing until 70. You won't get the benefits for the years you suspended but when you do finally file for them at 70, they'll be 32% higher than they would have been had you taken them at 70. You don't have to wait until 70, but if you file for them earlier, you won't receive as much of an increase because you'll earn fewer delayed retirement credits, which are applied monthly. Thanks, John