Social Security delayed retirement credits - really 8% per year after FRA up to age 70?

Yes, this is accurate! You earn Delayed Retirement Credits (DRCs) at a rate of 8% per year (or 2/3% per month) for each year you delay claiming benefits beyond your Full Retirement Age up until age 70. So if your FRA is 67, you can increase your benefit by 24% by waiting until 70. However, there's a slight misunderstanding in what your coworker told you. You don't need to file and suspend to get these credits. You can simply wait to file until age 70 and automatically get the increase. The "file and suspend" strategy was mostly eliminated by legislation in 2015, though there are still some limited situations where it might apply.

my sister did this waiting thing and got way more $$ when she finally started taking it at 70. but she was rich already so she could afford to wait. not everyone can wait 3 yrs with no SS money coming in just for a bigger check later

Just to add some clarification - the 8% per year is simple interest, not compound. And it's important to note that while delaying can be beneficial, the breakeven point is typically around age 82-83. This means you need to live past that age to truly benefit from delaying. Another consideration: if you're married, delaying can also potentially increase survivor benefits for your spouse, which is often overlooked in these calculations. FYI - the old "file and suspend" strategy that allowed one spouse to collect on the other's record while the primary earner delayed is no longer available as mentioned above. The rules changed in 2015 with the Bipartisan Budget Act.

Has anyone actually CALLED social security to ask about this? I was on hold for 3 HOURS last week trying to get an answer about my benefits and then got disconnected. Their phone system is a NIGHTMARE!

One thing no one mentioned yet - if you're still working, your benefit amount could increase anyway based on your continued earnings. Social Security calculates your benefit on your highest 35 years of earnings, so if you're earning more now than in some earlier years, those higher earnings will replace lower earnings years in the calculation. Also, while the 8% per year increase for delaying is great, remember that you're forgoing 3 years of payments completely. The math works out better the longer you live, but you need to consider your health and family longevity too.

my friend said she just waited til 70 no filing or suspending or nothing just applied when she was 70 and got the bigger amount automatically

Thanks everyone for the helpful information! I'm going to just wait until 70 to file since that seems to be the consensus. With my family history of longevity and the potential survivor benefits for my wife, the 24% increase seems worth waiting for. Plus I'm still working and can afford to wait. Really appreciate all the insights!