I am wondering if I do not start taking my Social Security payment the month I retire, but wait until later--I won't be contributing to Social Security since I won't be working--so my question is, if I am not contributing, but wait to start my payments, will the payments increase? Do they increase according to the projections shown on the website Benefit Estimate Table? I called a Social Security representative who did not understand my question. Thank you.

Hi,

Yes, assuming that you're between age 62 & 70. Your Social Security retirement benefit rate would continue to increase until you reach age 70, as long as you don't start drawing your benefits before then. The sooner that you start drawing prior to age 70, the lower your monthly rate will be.

Your Social Security retirement benefits are based on an average of your highest 35 years of Social Security covered wage-indexed earnings. If you stop working, then you can't increase the 35 year average on which your primary insurance amount (PIA) is based. A person's PIA is equal to their Social Security retirement benefit rate if they start drawing their benefits at full retirement age (FRA). However, you can still earn delayed retirement credits (DRC) between FRA and age 70 by delaying the start of your benefits.

The estimates on your Social Security benefit statement should be accurate unless they include estimated future earnings that don't materialize because you stop working early. You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to get an accurate estimate of your benefit rate, and to fully analyze your filing options so that you can choose the best possible strategy for maximizing your benefits.

Best, Jerry