Social Security DRC confusion - is 8% increase annual or monthly at 0.67% after FRA?
I'm trying to help my wife understand her delayed retirement credits (DRCs) but we're getting confused about how the increases work. She'll be turning 69 in April 2025 and wants to file for her Social Security retirement then. She's worried about timing because she thinks there's an annual 8% increase that happens on a specific date, and she doesn't want to miss out on it. I've been trying to tell her that I think the 8% is actually accumulated monthly (like 0.67% per month) after full retirement age, not given as a lump sum once per year. Am I understanding this correctly? I don't want her to unnecessarily delay filing if she's already earned all possible increases for her age. We tried calling SSA but got disconnected after waiting 45 minutes!
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Jackie Martinez
You're absolutely right! The delayed retirement credits (DRCs) accumulate at a rate of 2/3 of 1% per month, which works out to 8% per year. Your wife doesn't need to wait for a specific month to "lock in" the increase - it's already calculated into her benefit amount based on exactly how many months she's delayed past her FRA. Each month she waits gives her that additional 0.67% increase. So if she wants to start in April 2025 at age 69, she'll have already earned all the DRCs up to that point.
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Monique Byrd
•Thank you so much for confirming! I kept telling her it's a monthly thing but she was convinced that if she filed at the wrong time she'd somehow miss out on a full year's increase. This is a relief - I'll show her your response.
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Lia Quinn
The SSA phone lines are ridiculously frustrating! I had the same issue trying to get through about my benefits calculation. After getting disconnected THREE TIMES I found this service called Claimyr (claimyr.com) that got me through to an agent in under 10 minutes. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU. Was definitely worth it to get my questions answered without the all-day phone nightmare. They can connect you directly to a human at SSA who can explain all the delayed retirement credit details for your wife's specific situation.
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Haley Stokes
•does this claimyr thing actually work? ive been trying to reach ssa for weeks about my disability application
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Jackie Martinez
To clarify one more point - the maximum DRC your wife can earn is 32% (if her FRA was 66 and she waits until 70). Each year she delays past FRA adds 8%, but it stops accumulating at age 70. There's absolutely no benefit to waiting beyond 70 to file. So if she's turning 69 in April 2025 and her FRA was 66, she'll have already earned 24% in DRCs (3 years × 8%).
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Monique Byrd
•That makes perfect sense. Her FRA was actually 66 and 6 months, so I guess she'd have approximately 20% in DRCs by April 2025 (2.5 years × 8%). Is that right?
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Jackie Martinez
•Exactly right! If her FRA was 66 and 6 months, and she claims at 69, that's 2.5 years of delay, which equals 20% in DRCs (30 months × 0.67% per month = 20.1%). You've got it figured out perfectly.
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Asher Levin
MY HUSBAND THOUGHT THE SAME THING!!! He was convinced he needed to wait until his birthday month to get the full increase and I couldn't convince him otherwise. The Social Security website is so confusing on this. Why can't they just explain things clearly??!! He ended up waiting an extra 4 months for NO REASON and missed out on thousands of dollars he could have been collecting. Make sure your wife understands it's MONTHLY increases not yearly!!
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Monique Byrd
•Oh no, that's exactly what I was worried about happening! I'll definitely make sure she understands now. Sorry your husband missed out on those payments.
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Serene Snow
jus so u know when i filed last year the ssa agent told me wrong info bout the increases. said it was quarterly not monthly. cost me $$ so double check ur math when u apply
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Issac Nightingale
•This is unfortunately common. The monthly increase is definitely 2/3 of 1% (or 0.67%) per month for people born in 1943 or later. If you received incorrect information from an SSA agent that resulted in a filing mistake, you can request a withdrawal of application (Form SSA-521) within 12 months of filing and essentially start over with your decision. Might be worth looking into if it significantly impacted your benefit amount.
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Romeo Barrett
I just wanted to add that while the credits accumulate monthly, they're only APPLIED to your benefit once per year. My brother-in-law works for SSA and explained this to me. So technically you're both right - the increase is calculated monthly but implemented in your actual checks annually. Hope that helps!
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Issac Nightingale
•This information is incorrect. Delayed retirement credits are calculated monthly (0.67% per month) and are fully included in your benefit amount as soon as you file for retirement benefits. The only exception is if you file in the year you turn 70 - in that case, DRCs earned in the current year might be added to your benefit in January of the following year. But this is an administrative processing detail, not a fundamental change to how DRCs work. Your benefit amount will still reflect the full DRCs you've earned.
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Romeo Barrett
•Oh, maybe I misunderstood what my brother-in-law was saying! Thanks for clearing that up. I think he might have been referring to that processing thing for people filing at 70.
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Haley Stokes
this whole system is so complicated why cant they just give everyone the same amount its not fair that some people get more just for waiting i had to take mine early bc i needed the money and now im stuck with less forever
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Asher Levin
•I AGREE! The system definitely favors people who have enough savings to wait. If you need the money right away (like most of us do!!), you're penalized for the rest of your life. It's really unfair and the gap between early and delayed filing is way too big!
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Issac Nightingale
One important note: while your wife can earn delayed retirement credits up to age 70, she should consider filing a restricted application for spousal benefits only (if you're already receiving your retirement) while continuing to let her own benefit grow. This strategy is only available to people born before January 2, 1954, but it allows her to receive some benefits now while still earning DRCs on her own record. Worth checking if she qualifies based on her birthdate.
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Monique Byrd
•That's interesting, but I think we've missed that boat - she was born in 1956. I'm actually not collecting yet either (I'm a bit younger than her). But thanks for mentioning that strategy for others who might be reading this thread.
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Monique Byrd
Thanks for all the helpful responses everyone. I've shown my wife this thread and she now understands how the delayed retirement credits work. We've decided she'll file in April 2025 as planned, and now she's not worried about missing out on any increases. Really appreciate the clear explanations!
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Lia Quinn
•Glad we could help! When you do go to file, if you have any trouble reaching someone at SSA, remember that Claimyr option I mentioned. Saved me hours of frustration.
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Javier Cruz
Just want to add another perspective here - I work as a benefits counselor and see this confusion ALL the time. The key thing to remember is that Social Security calculates your benefit based on the exact month you start receiving payments. So if your wife files in April 2025, her benefit will include all the DRCs she's earned through that month. There's no "magic date" where you suddenly get a big jump - it's truly incremental each month. One tip: when she does file, make sure to ask for her benefit estimate in writing so you can verify the DRC calculation is correct. I've seen cases where the initial calculation had errors that needed to be corrected.
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Nia Thompson
•This is really valuable advice about getting the benefit estimate in writing! I'm new to all this Social Security stuff and didn't even know you could request that. Is there a specific form to ask for the written estimate, or do you just request it when you file? Also, what kind of errors do you typically see in the DRC calculations? Want to make sure we know what to look out for when my wife files.
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