Social Security DRC confusion - monthly benefit doesn't increase until January despite delaying after FRA

You've discovered something important about how Social Security actually processes Delayed Retirement Credits (DRCs). You're right that you earn 2/3 of 1% for each month you delay beyond FRA, but there's a catch in how they're applied. Delayed Retirement Credits are only applied to your benefit amount once per year, in January of the year after you earn them. So even though you're earning DRCs from June-December 2025, they won't actually show up in your payment amount until January 2026. This is why the calculator shows no increase until January - that's the actual SSA policy, even though it's not well publicized. It's one of those quirks in the system that can affect your claiming strategy.

the ssa website is right. my brother went thru this last year. its pretty stupid but thats how they do it. u earn the credits each month but they only add them to ur check in january of next yr. nobody tells u this stuff!

What you're encountering is called the "DRC computation lag" and it's a frustrating but standard part of how SSA operates. Let me break this down carefully: 1) You DO earn DRCs for each month you delay beyond FRA (2/3% per month, or 8% per year) 2) BUT these credits are only processed and added to your benefit amount once per year in January 3) This creates a lag where you've earned the credits but don't see them in your payments yet Financially speaking, there are two main approaches to consider: Option A: If you need the income now, start at FRA or claim retroactively if you've already passed FRA. You won't lose any money you're entitled to either way. Option B: If you can afford to wait until January 2026, you'll get the highest possible monthly amount from the beginning of your benefit period. The total lifetime value depends on your life expectancy and financial needs. There's no one-size-fits-all answer here.

Update: I just called SSA again today and got through to someone after trying for TWO DAYS. They verified what you all are saying - the DRCs accumulate monthly but only get applied to my benefit in January 2026. So frustrating! The agent couldn't really tell me which option was "best" financially, just that it depends on my situation. I'm leaning toward just starting at my FRA in June since waiting until November seems pointless if I don't see any increase until January anyway. Still feels like I'm missing something though...

This scenario comes up frequently, and there's an important nuance many people miss. When you receive your DRCs in January 2026, you'll get the INCREASED amount moving forward, but you WON'T receive retroactive adjustments for the months you received benefits in 2025. In financial terms, consider three options: 1) Start at FRA (June 2025): Receive 7 payments in 2025 at the lower amount, then the regular COLA-adjusted amount in 2026 (no DRCs) 2) Start in November 2025: Receive 2 payments in 2025 at the lower amount, then the DRC-increased amount from January 2026 onward (for 5 months of delay) 3) Wait until January 2026: Receive no payments in 2025, but get the full 7 months of DRCs applied from your first check For most people with average life expectancy, option 1 or 3 makes the most mathematical sense. Option 2 is usually the least favorable from a pure numbers perspective.

dont forget about TAXES!! if ur still working while waiting for SS u might end up paying more tax on ur benefits when u do take them. my sister waited and ended up with a higher benefit but got pushed into a higher tax bracket and now pays tax on 85% of her SS, completely wiped out the benefit of waiting!!

my neighbor said he just askd for 6 months retroactive benefits when he applied at 67 and got a lump sum payment. maybe thats better than waiting??

So after considering everyone's advice, I think I'm going with option 1 - starting at my FRA in June. The math makes sense, and I'd rather have the money now than wait for a slightly higher amount later. This whole DRC processing delay feels like something they should explain better on the SSA website. Without this forum, I might have waited until November thinking I'd get an immediate increase! Thanks to everyone who helped explain this confusing policy. I feel much more confident about my decision now.