Simple Social Security question(I hope?)

[robls]

Hi,
I have called the local and national social security numbers a couple times each, and have gotten conflicting answers to the following inquiries.
I have reached my full retirement age in December of 2014 as I turned 66 then. My question to them was as follows, will my monthly social security benefit amount increase each month I wait. For example, if I started now, I would receive $2,443 per month. Will that monthly amount increase if I take it in June 2015? I have searched the social security website, and have not found a definite answer. Hopefully, you understand my question(s)
Thanks in advance for any answers or links.
Rob

 

[Bestwifeever]

This explanation of monthly increase after FRA is here: Retirement Planner: Delayed Retirement Credits


Increase for Delayed Retirement
Year of Birth*
Yearly Rate of Increase
Monthly Rate of Increase
1933-1934 5.5% 11/24 of 1%
1935-1936 6.0% 1/2 of 1%
1937-1938 6.5% 13/24 of 1%
1939-1940 7.0% 7/12 of 1%
1941-1942 7.5% 5/8 of 1%
1943 or later 8.0% 2/3 of 1%

 

[wolf]

Does not affect me, took, early SS at 62.

However, heard this on "talk" show. If you want to wait for your SS.

You have to apply, as if you are going to take SS, then SUSPEND your

SS. Then your SS benefits will increase each year.

Funny, the caller said, she called SS twice, and was told you cannot do this.

But the host of the show. FA, said this is common and they do it all of the time

 

[mickeyd]

My question to them was as follows, will my monthly social security benefit
amount increase each month I wait.

Yes by about 8% annually until you are age 70. No delayed retirement credits after age 70. Other things being equal. if you wait 4 years after FRA you can expect the monthly total to be 32% higher than what it was at FRA (66/67).

 

[Independent]

Yes, use the link from Bestwifeever.

However, there is one catch, and this may be why you're getting conflicting answers.

If you start benefits in July 2015, then during 2015 only, they will only give you "credit" for the one month you delayed in 2014.

When 2016 comes along, they will increase your benefit for the remaining 6 months you delayed in 2015.

There will be no retroactive payment for the additional deferred benefits you didn't get in 2015.

If your monthly benefit at 66 were $1,500, you'd earn an additional $10 of monthly benefit for each month you defer because $1,500 x 2/3 of 1% = $10.

But, if you start in July 2015, you'll only get $1,510 for the first six months, then they will bump you up to $1,570 in January 2016.

(I may be off by one month here, it's always confusing because SS pays the month after your birthday.)

 

[Hermit]

Does not affect me, took, early SS at 62.

However, heard this on "talk" show. If you want to wait for your SS.

You have to apply, as if you are going to take SS, then SUSPEND your

SS. Then your SS benefits will increase each year.

Funny, the caller said, she called SS twice, and was told you cannot do this.

But the host of the show. FA, said this is common and they do it all of the time

I think the file and suspend only comes into play if your spouse is going to claim on your account.

 

[mathjak107]

nope ,singles can file and suspend. that way if they delay they can get a retroactive lump sum if they need money going back to fra.

 

[Hermit]

nope ,singles can file and suspend. that way if they delay they can get a retroactive lump sum if they need money going back to fra.

I'll take your word on that one. Sounds like a rule thrown in there to make life simpler.

As I understand it, you do not have to file and suspend to continue getting 8% annual increases on a monthly basis for each month you delay taking Social Security up to age 70.

 

[mathjak107]

file and suspend for a single has nothing to do with the increases, you get that anyway.

what it does is lets say you are 68 and need a roof or turn ill.

you can request a lump sum check going back to your fra. they will adjust your payment down as if you retired back then and give you a lump sum check.

if you do not file and suspend you have no claim to that money.

 

[Philliefan33]

nope ,singles can file and suspend. that way if they delay they can get a retroactive lump sum if they need money going back to fra.

Can a married person also get the lump sum if they file and suspend? In our situation DH will be older than 70 before I turn 62, so there is no spousal benefit consideration for him to file and suspend at his FRA. But would F&S preserve the option of a retroactive lump sum for him?

 

[MissMolly]

Can a married person also get the lump sum if they file and suspend? In our situation DH will be older than 70 before I turn 62, so there is no spousal benefit consideration for him to file and suspend at his FRA. But would F&S preserve the option of a retroactive lump sum for him?

Yes, married people have the same option to file and suspend and then get a retroactive lump sum if they choose. However, at that point they will have been deemed as having filed for SS at their full retirement age of 66 and all monthly checks going forward will be at the age 66 amount and not whatever age he may have attained.

 

[Brett_Cameron]

OP: Here is response to when the Delayed Retirement Credits would be effective:

"DRC increases are effective:
in January of the year following the year the increment months were earned;"

This is from the Social Security Program Operations Manual System (POMS)

 

[pb4uski]

....As I understand it, you do not have to file and suspend to continue getting 8% annual increases on a monthly basis for each month you delay taking Social Security up to age 70.

+1 And to be clear the 8% is not compounded, so it is just the period of time deferred in years times 8%... so if you defer for 4 years you get 132% of your FRA (not 136%).

 

[Hermit]

OP: Here is response to when the Delayed Retirement Credits would be effective:

"DRC increases are effective:
in January of the year following the year the increment months were earned;"

This is from the Social Security Program Operations Manual System (POMS)

From the POMS:

B. When benefits are increased because of increment months

DRC increases are effective:
in January of the year following the year the increment months were earned;
in the month of attainment of age 70; or
in the month of death of the NH, for widow(er)s benefits with DRCs.

As I read this if you delay until age 70, there is no delay until January of the following year.

 

[robls]

Thanks, everyone for the responses. Really love this forum.