I am 67 yrs 9 months old with a Full Retirement Age of 66. I haven't started taking my SSA benefits yet and am confused by SSA.gov's benefit estimates and calculator. Prior to reaching FRA, they showed the benefit increasing monthly if filing is delayed. After reaching FRA, they show the benefit increasing only once annually. This is true for the social security pdf statements, the online estimator, and the anypia calculator. I've verified with friends who found the same result. I may want or need to start my benefits sometime next year. According to the ssa estimate, my benefit will increase if I file in January 2022, but would not increase again if I file later in the year. How can I trust the ssa to calculate the correct benefit when their own published calculators clearly do not adhere to the rule that the benefit increases monthly for each month that claiming benefits is delayed?

Hi. I'm not that familiar with Social Security's online benefit estimate calculator, but you can be confident that Social Security will calculate your benefit amount correctly when you actually apply for benefits. I base that opinion on my 36 years of experience working at Social Security. Virtually all Social Security retirement benefit calculations are automated, and I can assure you that those computations are extremely accurate.

I'm assuming that the reason your online estimates only show an increase annually rather than monthly is due to the way that delayed retirement credits (DRC) are credited. DRCs add 2/3rds of 1% to your benefit rate for each month that you delay claiming benefits between full retirement age (FRA) and age 70, but if you start drawing benefits between FRA and age 70 Social Security initially only gives you credit for any DRCs that you earned through December of the year prior to the year you start collecting. Any additional DRCs earned in the year that you start drawing benefits are subsequently credited effective with your payment for January of the year after the year you claimed benefits.

For example, if Tom files for benefits effective with April 2021 when he reaches age 68, he would initially be credited with the 21 DRCs he earned through December 2020. That would result in the same rate he'd have gotten if he'd filed effective with January 2021. However, effective with Tom's benefit rate for January 2022, he'd be credited with the additional 3 DRCs he earned for not drawing benefits for January through March 2021. So, from then on Tom's monthly rate would be roughly 2% higher than it would be if he had started drawing effective with January 2021.

You should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) in order to get accurate benefit estimate calculations, and to fully analyze all of your options so that you can determine the best strategy for maximizing your benefits.

Best, Jerry