Delayed Retirement Credits: Boost Your Social Security
Waiting to claim can increase your monthly Social Security for life. With Delayed Retirement Credits (DRCs), your benefit grows each month you delay after your Full Retirement Age (FRA), up to age 70. This guide explains how DRCs work, who benefits most, and how to coordinate timing with spouses, survivor benefits, earnings, and Medicare. For one-on-one help, explore our Social Security services and strategies to maximize benefits.
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How Delayed Retirement Credits Work
- Monthly accrual: After your Full Retirement Age, your benefit increases by approximately 2/3 of 1% per month (~8% per year) until age 70.
- Ceiling: DRCs stop accruing at 70. There’s no benefit to waiting beyond 70 to file.
- Permanent boost: Your higher amount becomes the new base for future cost-of-living adjustments (COLAs).
- No DRCs before FRA: Delaying between 62 and FRA avoids early-claim reductions, but DRCs only accrue after FRA.
Who Benefits Most from Delaying
- Longevity confidence: If you expect to live into your late 80s or 90s, higher lifetime income can offset early-claim reductions.
- Higher earner in a couple: Delaying the larger benefit can increase survivor income for your spouse later.
- Still working post-FRA: Earnings won’t trigger the earnings-test withholding after FRA, so delaying can be simpler.
- Limited pensions/annuities: DRCs can act like an inflation-adjusted “guaranteed raise” for life.
Ways to Earn DRCs: Delay vs. Voluntary Suspend
- Delay initial claim: Don’t file at FRA; each month you wait increases your benefit until 70.
- Voluntary suspend at FRA: If you already filed, you can ask SSA to voluntarily suspend benefits any time from FRA to 70 to earn DRCs going forward.
- Retroactive payments: Requesting up to six months of retroactive benefits (if eligible) will reduce your DRCs for those retro months—trade-off to consider.
DRC Math Examples & Break-Even Thinking
| Scenario | Monthly at FRA | Start at 68 (≈+16%) | Start at 70 (≈+24%) |
|---|---|---|---|
| FRA = $2,000/mo | $2,000 | ≈ $2,320 | ≈ $2,480 |
| FRA = $1,600/mo | $1,600 | ≈ $1,856 | ≈ $1,984 |
Illustrative only. DRC percentages accrue monthly; your exact FRA depends on birth year.
Break-even idea: Delaying means fewer months paid but a higher amount for life. Many households see break-even in the late 70s to early 80s—your health, spouse’s age, taxes, and other income matter.
Coordinating with Spousal & Survivor Benefits
- Spousal benefits don’t earn DRCs: A spousal benefit (up to 50% of the worker’s PIA at your FRA) doesn’t get the 8% annual boosts.
- Survivor benefits can reflect DRCs: If the deceased delayed and earned DRCs, the survivor benefit is generally based on that higher amount (subject to timing rules).
- Deemed filing (born 1954+): Filing for one (retirement/spousal) often means you’ve filed for both; SSA pays the higher. Strategy still exists, but is narrower than in the past.
COLA, Taxes, Earnings Test & Medicare Timing
- COLA: Annual COLAs stack on top of your higher, DRC-boosted amount—bigger base means bigger COLA dollars.
- Taxes: Benefits may be taxable based on combined income. Coordinating IRA/annuity withdrawals can help manage brackets.
- Earnings test: Applies only before FRA; after FRA there’s no withholding for work income.
- Medicare: Don’t confuse delaying Social Security with delaying Medicare Part B. If not covered by a qualifying employer plan, enroll on time to avoid penalties—run numbers with our Medicare calculator.
How to Apply or Suspend (Step-by-Step)
- Confirm your FRA and projected benefits at different ages.
- Model cash-flow with spouse, survivor needs, taxes, and health expectations.
- Choose a month (not just a year) to file or suspend; DRCs accrue monthly.
- File online or by phone with SSA. If already receiving benefits and at FRA+, request a voluntary suspension to begin earning DRCs.
We’re not affiliated with SSA. Educational only—not tax, legal, or investment advice.
Related Resources
FAQs: Delayed Retirement Credits
Do I get DRCs if I delay before my FRA?
No. DRCs only accrue for months you delay after your Full Retirement Age, up to 70.
Can I start at 68 and still get the credits I earned?
Yes. If you start at 68, you keep about two years’ worth of DRCs (~16%) on top of your FRA amount.
Can I suspend after I’ve already started benefits?
At or after FRA, you can ask SSA to voluntarily suspend and earn DRCs going forward until 70.
Should both spouses delay to 70?
Not always. Often the higher earner delays to boost potential survivor income, while the other files earlier. We’ll model your scenario.
