If you do not feel the need to draw benefits at full retirement age and/or would like to continue working, you are eligible to earn delayed retirement credits (DRC) for each month that you do not start receiving benefits. • Currently, the full-year DRC for those born in 1943 or later is 8% per year (pro-rated monthly). • The credit stops once you reach age 70. • In limited cases, a spouse may draw benefits while the higher earner accrues DRCs. • Derivative benefits for your spouse do not include any DRCs. DELAYED RETIREMENT CREDITS Year of Birth * 12-Month 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 % INCREASE FOR DELAYED RETIREMENT 7 *Note: If you were born on Jan. 1, you should refer to the previous year.
7 Social Security Administration. “Retirement Planner: Delayed Retirement Credits.” https://www.ssa.gov/planners/retire/delayret.html. Accessed Feb. 29, 2020.
:5: This document is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market or recommend any tax plan or arrangement. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation. This content is not endorsed by the Social Security Administration, and our firm is not affiliated with the United States government or any other governmental agency. This document is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market or recommend any tax plan or arrangement. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation. This content is not endorsed by the Social Security Administration, and our firm is not affiliated with the United States government or any other governmental agency.
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