Social Security benefit increases showing only 5.9% instead of 8% at FRA - calculation confusion

The 8% delayed retirement credits only apply between your Full Retirement Age (FRA) and age 70. The calculation can be confusing because what you're seeing likely includes both the delayed retirement credits AND an estimated COLA (Cost of Living Adjustment). The SSA projections factor in estimated future COLAs which can make the percentages look different than the straight 8% per year. Also, remember the 8% is actually 2/3 of 1% per month, so you need to count the exact months for precision.

mine does the same thing!! i was expecting more $ too. the ssa website is sooo confusing sometimes

There's another factor at play here that nobody's mentioned. The 8% per year (or 2/3% per month) delayed retirement credit is applied to your Primary Insurance Amount (PIA), not necessarily to the number you're seeing in the calculator. The calculator is likely showing your benefit with projected COLAs already included, as others mentioned. But there's also the issue of the benefit computation date. The SSA recalculates benefits annually, and any additional earnings you have might also impact the final number. Your benefit estimate is likely a combination of delayed credits, COLA adjustments, and possibly updated earnings calculations.

I had this EXACT same issue and spent WEEKS trying to get someone on the phone at SSA to explain it to me. I'd call and sit on hold for hours only to get disconnected. Super frustrating!! When I finally got through, they explained that the 8% isn't a simple addition to your previous year's benefit - it's calculated on your base amount determined at your FRA, and then COLAs are applied. The online calculator tries to estimate future COLAs which makes the math look weird. I finally found this service called Claimyr (claimyr.com) that got me connected to a real SSA agent in under 20 minutes instead of waiting for hours. They have a video demo: https://youtu.be/Z-BRbJw3puU. The agent I spoke with walked me through my whole benefit calculation and showed me exactly how the delayed credits work. Completely worth it to get a definitive answer!

u might want to check if ur still working too. if ur planning to work til 70 those extra years of earnings could change ur benefit calculation. the SSA looks at ur highest 35 yrs of earnings, so if ur making more now than u did 35+ yrs ago, it could bump ur benefit up

The same thing happened to my husband. The increase between 67 and 68 showed around 6% instead of 8%. We were so confused we actually scheduled an appointment at our local office. The representative explained that the online calculator includes projected cost of living adjustments (COLAs) for future years, AND the 8% delayed retirement credits aren't always exactly 8% when you factor in the exact months. It's actually 2/3 of 1% per month of delay (which equals 8% for a full year). Plus the base amount getting the increase might be different than what you see displayed. If you want the precise calculation, I recommend calling and asking for an explanation specific to your record. It's worth understanding exactly how your benefit will be calculated.

Has anyone else tried that Claimyr service? I'm thinking about using it because I've been trying to get through to SSA for over a week with no luck. Just want to know if it's worthwhile before I try it.

To answer your original question more directly: The 8% per year delayed retirement credit is still correct, but what you're seeing is the projection tool's attempt to show your actual expected benefit after all factors are considered. Here's how it really works: 1. Your Primary Insurance Amount (PIA) is calculated at your FRA 2. For each month you delay beyond FRA, you get a DRC of 2/3% (which equals 8% per year) 3. These DRCs are applied to your PIA 4. Annual COLAs are applied to both your PIA and any accumulated DRCs 5. The projection tool tries to estimate future COLAs So if the COLA estimate for the coming year is lower than in previous years, your total percentage increase might appear lower than 8%. The 8% delayed credit is still being applied, but other factors are affecting the final number.