Industry story
Social Security Delays Crediting Delayed Retirement Credits Mid-Year
retirement-income social-security tax-planning
When you claim Social Security retirement benefits after your full retirement age but before age 70, the Social Security Administration only calculates and awards delayed retirement credits — the roughly 8% per year bonus for waiting — once per year, in January. If you claim in, say, June, the credits you earned from January through June won't be added to your benefit until the following January, meaning your payments will be slightly lower for those months. The one exception: if you claim exactly at age 70, SSA immediately awards all credits you've earned. Chris Stein noted that SSA is also reportedly behind in awarding these credits even in ordinary cases, so if your benefit looks lower than expected, you're not alone — SSA will eventually make you whole, but it may take time. The practical takeaway is that the month you claim within a given year has only a tiny effect on lifetime benefits, and you should not let this quirk drive your claiming decision.
Full analysis
When you claim Social Security retirement benefits after your full retirement age but before age 70, the Social Security Administration only calculates and awards delayed retirement credits — the roughly 8% per year bonus for waiting — once per year, in January. If you claim in, say, June, the credits you earned from January through June won't be added to your benefit until the following January, meaning your payments will be slightly lower for those months. The one exception: if you claim exactly at age 70, SSA immediately awards all credits you've earned. Chris Stein noted that SSA is also reportedly behind in awarding these credits even in ordinary cases, so if your benefit looks lower than expected, you're not alone — SSA will eventually make you whole, but it may take time. The practical takeaway is that the month you claim within a given year has only a tiny effect on lifetime benefits, and you should not let this quirk drive your claiming decision.
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