Delayed Retirement Credits and Social Security Payout Increases
Waiting to claim Social Security can meaningfully raise your monthly check. Thanks to Delayed Retirement Credits (DRCs), your benefit grows by 2/3 of 1% per month after Full Retirement Age (FRA)—about 8% per year—until age 70. Below, we explain how DRCs work, who benefits most from delaying, and how to coordinate timing with pensions, IRAs, and annuities for the highest lifetime income.
Get a Social Security Timing Review
We’ll model your break-even age, spousal/survivor scenarios, and income mix with annuities or investments.
How Delayed Retirement Credits Increase Your Benefit
- FRA is your baseline. For most people today, FRA is age 67 (check your exact FRA).
- DRC rate: Benefits rise by 0.667% per month (8% per year) for each month you delay after FRA, up to age 70.
- No DRCs after 70. There’s no advantage to delaying past age 70.
- COLAs still apply. Annual cost-of-living adjustments compound on your benefit whether you’ve claimed or are still waiting.
- You can suspend at FRA. If you started early, you may voluntarily suspend at FRA and earn DRCs going forward until 70.
Quick Example (FRA = 67, PIA = $2,000/month)
| Claim Age | % of PIA | Estimated Monthly Amount |
|---|---|---|
| 62 | ~70% | $1,400 |
| 67 (FRA) | 100% | $2,000 |
| 70 | ~124% | $2,480 |
Illustrative only; actual percentages vary by birth year and exclude COLAs.
When Delaying Often Makes Sense
- Longevity expectations are strong. If you expect to live into your 80s, higher lifetime benefits from delaying can outweigh early payments.
- You have other income now. Pensions, part-time work, IRAs, or annuity income can cover expenses while you wait.
- Coordinating with a spouse. A larger worker benefit can raise potential survivor benefits later.
When Claiming Earlier Could Be Better
- Shorter life expectancy or health concerns.
- Cash-flow needs now. You need income to avoid high-interest debt or large withdrawals.
- Earnings test before FRA. If you work and claim before FRA, the earnings test may temporarily withhold benefits (not lost, but timing matters).
Break-Even Snapshot
With the example above ($2,000 at FRA vs. ~$2,480 at 70), the “break-even” where delaying overtakes claiming at FRA typically falls around age 79–81 depending on COLAs and taxes. We’ll calculate yours precisely.
Important Rules to Know
- Spousal benefits don’t earn DRCs—max is generally 50% of the worker’s PIA at the spouse’s FRA.
- Survivor benefits can reflect the worker’s delayed credits; timing can protect the surviving spouse’s income.
- Medicare is separate—enroll on time to avoid penalties if you’re not covered by credible employer insurance.
- Retroactive option: If you wait past FRA, you may request up to six months of retroactive benefits (one-time decision).
How We Help You Decide
- Model claim-now vs. delay scenarios with taxes, COLAs, and spousal/survivor options.
- Coordinate Social Security with guaranteed income annuities, pensions, and withdrawals.
- Stress-test against market risk and healthcare costs (LTC coverage).
