I am currently 62. Per my benefit matrix, the annual increase of my benefits is not quite 1.08% of the prior year during my post FRA (to age 70) years. I thought the amount went up by 8 % every year so should it not be 1.08 times the prior year amount?

Hi. Not exactly. Delayed retirement credits (DRC) add 2/3rds of 1% to your full retirement age (FRA) rate for each month that you delay starting your benefits between FRA and age 70. In other words, the 8% per year increase caused by DRCs is calculated based on your FRA rate, or primary insurance amount (PIA), not your prior year's rate. Multiplying your prior year rate after you reach FRA by 1.08 would have the effect of compounding the DRC increases.

For example, if your FRA is age 67 and if your PIA is $1000, you would multiply your PIA by 1.24 to get your benefit rate if you wait until age 70 to start drawing (i.e. $1000 x 1.24 = $1240).

That said, it doesn't sound like the benefit matrix you're referring to is correct. You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to get accurate benefit estimates and to fully analyze the filing options available to you in order to determine your best strategy for maximizing your benefits.

Best, Jerry