How to get an accurate number with DRCs after full retirement age

[Mike10]

I am turning 70 in a couple of months and have applied for benefits to start when I reach 70. I have two examples below and I would like to know which example is correct.

To make the example simple I will be using numbers which do not reflect the actual amounts.

PIA = 2500 at full retirement age of 66 in 2019
DRC = 200
CPI 1 for 2020 = 1%
CPI 2 for 2021 = 1%

The calculation for starting SS at 67 in 2020 would be (PIA*CPI 1) + PIA +DRC.

The next example is where I am not sure how starting SS at 68 is calculated.

(((PIA*CPI 1) + PIA)*CPI 2)+(PIA*CPI 1) + PIA) + 2*DRC

or is it

(((PIA*CPI 1) + PIA +DRC) * CPI 2) + (PIA*CPI 1) + PIA +DRC) + 1*DRC.

I guess what I am asking is if the DRC credits from the prior year are included when calculating the base amount for the next year or if CPI is only calculated on the prior year PIA amount with no CPI amount added for the prior year unclaimed DRC.

 

[SevenUp]

The base PIA would have been calculated for 2015, the year of turning 62.

The COLAed PIA in 2019 would have depended on the inflation for the intervening years.

For exact numbers, there is rounding that occurs.

One place you can see equations used is the SocialSecurity tab of the case study spreadsheet.

Another good benefit estimate site is ssa.tools.

 

[Mike10]

Thanks for the link. Since I am receiving spousal benefits my statement longer shows what I will receive at 70. The tools link is what I needed but I was unable to find before.

 

[jebmke]

AnyPIA got it right for me. I used it to check the determination letter from SSA (which turned out to have the wrong number). Make sure to check their calculations. They do get it wrong sometimes.