Who Can Get Delayed Retirement Credits?

If you delay Social Security benefits, the benefit will increase a certain percentage from the time you reach full retirement age, until you start receiving benefits, or until you reach age 70. The percentage varies depending on your year of birth. For example, if you were born in 1943 or later, we’ll add 8 percent to your benefit for each year you delay receiving Social Security benefits beyond your full retirement age.

Visit our website here: https://www.ssa.gov/OACT/quickcalc/early_late.html to see how delayed retirement credits can increase your monthly Social Security amount. This page gives further information about when the increase is calculated. At the bottom of the page there is a link for a useful chart which shows the interaction between early retirement benefits, benefits at full retirement age, and deferred benefits: https://www.ssa.gov/OACT/quickcalc/early_late.html. You can use this chart to get some percentages which you can apply to your full retirement age amount on your Social Security Statement. (If you don’t have a my Social Security account with access to your current statement information, you can sign up for one here: https://www.ssa.gov/myaccount/.)

Delayed retirement credits are given to the worker (either male or female) who has 40 work credits under Social Security and will receive a Social Security benefit based on their own work. Spouses and children receiving benefits on the workers record do not receive an increase due to the worker’s delayed retirement credits. Widows and widowers receive the benefit of the increase that was added to the record before the worker died.

Knowing the value of delayed retirement credits is important for retirement planning. After reviewing all your sources of retirement funding, you can decide if delaying benefits makes sense in your financial situation.