Ready for SS but one question

RetireBy90

Thinks s/he gets paid by the post
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So I’ll be 69 this year and planning on SS in Jan 26 at 69 and 7 months.
I understand that you “earn” 2/3 of 1% for each month past FRA you delay, but I’m a bit confused about when that is credited. My FRA is 66 and 4 months, so Jan would be 39 months or 26% increase to my FRA amount.
So if above is correct, and I file to start Jan 26 would the entire 26% plus FRA be my monthly amount or would I get 36 months for 26 and then extra 3 months credited in Jan 27 ?
As you can see I’m just a bit confused.
Please assume my FRA at 66 and 4 months is $4,000
Thanks for help with this. :)
 
I am not an expert on this. However, I leaned on ssa.tools (SSA.tools: A Social Security Calculator) to try to answer your question.

I am assuming that when you say "start in January 2026" you mean that you will get your first check in Feb. 2026 (as SS is paid in arrears). If that is not true, then my answer below will be off.

My conclustion is that you get the entire 26% increase starting in January 2026. This is because you are in the special case of starting in January. As I think you already understood, you don't get the benefit of your delayed credits for year N reflected until January of year N+1. But all of your delayed credits will be in year 2025 or earlier. So you will see ALL of the delayed credits in January 2026, which coincindentally is your starting date.

Anyway, I asked ssa.tools to calculate the starting benefit for someone who was born on June 22, 1956, and who filed to start in Jan 2026, with a PIA of $4,000. ssa.tools said it would be $5,040 per month (which is 1.26X$4,000) and no change in January 2027.
 
I am not an expert on this. However, I leaned on ssa.tools (SSA.tools: A Social Security Calculator) to try to answer your question.

I am assuming that when you say "start in January 2026" you mean that you will get your first check in Feb. 2026 (as SS is paid in arrears). If that is not true, then my answer below will be off.

My conclustion is that you get the entire 26% increase starting in January 2026. This is because you are in the special case of starting in January. As I think you already understood, you don't get the benefit of your delayed credits for year N reflected until January of year N+1. But all of your delayed credits will be in year 2025 or earlier. So you will see ALL of the delayed credits in January 2026, which coincindentally is your starting date.

Anyway, I asked ssa.tools to calculate the starting benefit for someone who was born on June 22, 1956, and who filed to start in Jan 2026, with a PIA of $4,000. ssa.tools said it would be $5,040 per month (which is 1.26X$4,000) and no change in January 2027.
Thanks for doing the lookup on ssa tools. I’ve used several different calculators and planning sites to get retired (in 2018) but not this one. 👍
 
Yes, they credit all the DRCs (Delayed Retirement Credits) in January of each year (after full retirement age) unless you wait until your birthday month when you turn 70 and then they credit them all at that time.
 
Yes, they credit all the DRCs (Delayed Retirement Credits) in January of each year (after full retirement age) unless you wait until your birthday month when you turn 70 and then they credit them all at that time.
Thanks, that is my plan. I am targeting Jan to get the DRCs.
So that would be starting Jan but first check not till Feb if I understand.
 
If you wait until to start your benefits in the month of your 70th birthday (June2026) you will get all your 2026 DRCs without having to wait until Jan2027. Six more months of DRCs earned and paid immediately when you start at 70.
 
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