Social Security benefit increase after FRA - is 8% yearly boost prorated monthly or not?

Thank you so much for clarifying! That's actually great news since every little bit helps. So if I understand correctly, I could potentially delay until age 70 for the maximum 24% increase (8% × 3 years), or I could claim at any point before that and still get some proportional benefit increase. That gives me more flexibility with my retirement planning.

It may not seem like much for 4 months, but that 2.5% is for LIFE! And it affects any survivor benefits too. Every month you wait is more money forever. I waited 18 months past my FRA and wish I'd gone all the way to 70 now that I see the numbers.

This is SO true - many people don't realize that working past FRA can replace low-earning years in your top 35! My wife worked until 69 and her benefit went up by almost 14% - part from the delay credits and part from replacing some zero years from when she stayed home with our kids in the 80s.

I hadn't even thought about the survivor benefit aspect! My wife is 3 years younger than me and has a much smaller work history, so that's definitely something to consider. Thanks for bringing this up - it gives me even more to think about in my planning.

There's a misunderstanding here. The OP is asking about delaying PAST their Full Retirement Age (which is when they turn 67), not about applying early. Also, the break-even calculation varies widely based on individual circumstances and investment assumptions. For many people, especially with family longevity or a spouse who might receive survivor benefits, delaying can be financially advantageous.

I had the exact same problem, it's so frustrating. I finally used this service called Claimyr that got me through to a rep in about 20 minutes instead of waiting for hours. It basically holds your place in line and calls you when an agent is available. I was skeptical at first but it worked great. You can see how it works at claimyr.com or watch their demo at https://youtu.be/Z-BRbJw3puU - totally changed my experience with getting questions answered.

The situation is different for SSDI. When you reach your Full Retirement Age, your disability benefits automatically convert to retirement benefits, generally at the same amount. The delayed retirement credits strategy only applies to retirement benefits that haven't been claimed yet. Since you're already receiving SSDI, you won't have the option to delay and increase your benefit - the conversion happens automatically.

This is partially accurate but potentially misleading. The taxation of Social Security benefits is based on your combined income regardless of when you claim. If anything, claiming earlier could result in higher lifetime taxation because you'd be drawing from retirement accounts alongside Social Security for more years. Tax planning is important, but it generally doesn't favor early claiming from a mathematical perspective.

That's really helpful to see a real example with actual numbers! I'm relatively new to thinking about Social Security planning and hadn't considered creating a spreadsheet to compare the scenarios. Could you share what other factors you included in your analysis beyond just the monthly benefit amounts? I'm wondering if you factored in things like inflation, potential changes to Social Security, or how it affected your overall retirement portfolio withdrawals. As someone just starting to research this, any tips on what to include in that kind of comparison would be really appreciated!

@Chloe Zhang Great question! I included several key factors in my spreadsheet beyond just the basic monthly amounts. First, I used a 2.5% annual inflation adjustment to compare future purchasing power rather than nominal dollars. I also factored in the opportunity cost - what I could earn by investing the Social Security payments if I claimed earlier I (used a conservative 4% return .)For taxes, I estimated what percentage of my benefits would be taxable based on my other retirement income sources. I didn t'try to predict Social Security changes since that s'too speculative, but I did run scenarios with different life expectancies 75, (80, 85, 90 to) see how sensitive the decision was to longevity assumptions. The biggest eye-opener was realizing that even small monthly increases compound significantly over 20+ years of retirement. Happy to share more specifics if you d'like!

This is really valuable real-world experience, thank you for sharing! I'm curious about the benefit estimate process you mentioned - when you called SSA to get estimates for different claiming dates, did they provide those over the phone or did you need to request written estimates? I've been hesitant to call because of all the horror stories about long wait times, but it sounds like it might be worth it to get those specific numbers. Also, you mentioned the "restricted application" strategy - even though the rules changed for people born after 1954, are there still any spousal benefit strategies that might be worth exploring for someone in my situation? I'm married and my spouse is a few years younger, so I want to make sure I'm considering all the options before making this decision.