Delayed Retirement Credits
Month-to-Month
If you’ve ever thought about when to take Social Security, you’ve probably seen charts like this.
If you didn’t already know, your benefit amount changes depending on the age you file for Social Security.
But did you know that you don't have to wait until year-end to receive the increase?
Social Security benefits are determined by the month that you file.
A quick example…
If you file at 68 and 0 months old, you’ll receive 108% of your PIA (your benefit amount at Full Retirement Age).
If you file at 67 and 11 months old, you’ll receive 107.33% of your PIA.
So your benefit increase does not jump up 8% the moment you turn 68, 69, or 70.
It’s on a month-to-month basis.
And because the adjustments to our benefits aren’t perfectly linear from age 62 to 70, neither are the monthly adjustment amounts.
As you can see from above:
Your monthly adjustment before age 64 is 0.417% (5% / 12 months)
Your monthly adjustment before age 67 is 0.556% (6.67% / 12 months).
Your monthly adjustment before age 70 is 0.667% (8% / 12 months).
2 More Things
You can file anytime in the month you were born to receive the benefit for that month.
And technically, benefits are determined by the day before your birthday. So if your birthday is on the 1st of a month, you could actually file in the month before to receive the benefit as if it were your birth month.
This page is sponsored by Worthwhile Retirement.
Because life is long, but earth is short.
The contents of this article are for informational and encouragement purposes only. The information discussed is general in nature, and may not be applicable to your specific situation. Therefore, you should not take this as individual investment, legal, or tax advice. Rather, diligently research whether or not the principles we discuss would be useful for you, and consult with a financial professional when necessary.