Hi Larry.

My question is about when delayed retirement credits and cost of living adjustments are credited. Based largely on information in your book, "Get Whats Yours" I had decided to wait until age 70 to apply for my benefit. That will be in May, 2021.

Recently I am considering applying a little early, in December of 2020. As I understand it my December benefit would be paid in January, 2021. Would that January check include both the accrued delayed retirement credits and cost of living adjustment through 2020?

Thank you.

Hi,

No. Since you won't turn age 70 until May 2021, if you choose to start your benefits effective with December 2020 your payment for that month paid in January 2021 would not include credit for any delayed retirement credits (DRC) you accrued in 2020. Any months of DRCs you earn in 2020 would be creditable starting with your payment for January 2021, which would be issued in February 2021. However, my understanding is that the automated process used by Social Security to credit DRCs that become effective after a person's initial month of entitlement is only done every other year, so the resulting increase might not be reflected in your actual benefit payments until sometime in 2022. Social Security would pay any back pay due retroactive to your payment for the month of January 2021, however.

Social Security cost of living increases (COLA) take effect with the payments for December that are paid in January, though, so if there is a 2021 Social Security COLA and you choose to start your benefits effective December 2020 then your payment received in January 2021 would include that COLA.

Best, Jerry