Delayed Retirement Credits — DRC
Delayed Retirement Credits raise your Social Security retirement benefit by about 8% per year for each year you wait past Full Retirement Age, up to age 70.
Official source: ssa.gov
Each year you wait to claim Social Security benefits past your Full Retirement Age (FRA) makes your monthly payment bigger. These bigger payments are called Delayed Retirement Credits (DRCs). You can earn DRCs until you turn 70 years old. After age 70, your payments will not get any bigger, even if you wait to claim them. Your FRA is based on your birth year. For most people, FRA is between 66 and 67 years old. Your monthly payment will be about 8% higher for each year you wait past your FRA. For example, if your FRA is 67 and you wait until 68 to claim benefits, your monthly payment will be about 8% higher. If you wait until 69, it will be about 16% higher. If you wait until 70, it will be about 24% higher than your payment would have been at your FRA. This can add up to a lot more money over time. It is a way to get more out of your Social Security benefits, especially if you can afford to wait. Anyone who is eligible for Social Security retirement benefits and waits to claim them past their FRA can earn DRCs. This includes workers, their spouses, and their survivors. It is important to know your FRA and how delaying your claim can affect your monthly payments. You can find your FRA and estimate your future benefits on the Social Security Administration (SSA) website. Their website has a calculator that shows how much more money you could get by waiting.
In real life
- Waiting from age 67 to 70 can boost a Social Security check by about 24%.
- Sarah kept working until 69 instead of collecting at her full retirement age of 67, so her monthly Social Security payment will be bigger.
- John decided not to take his Social Security until he turned 70, which means he'll get the highest possible monthly amount for his lifetime.
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Frequently asked questions about Delayed Retirement Credits
What is Delayed Retirement Credits?+
Delayed Retirement Credits raise your Social Security retirement benefit by about 8% per year for each year you wait past Full Retirement Age, up to age 70.
Who qualifies for Delayed Retirement Credits?+
Workers who have earned enough Social Security credits, plus eligible spouses and survivors.
How do I apply for Delayed Retirement Credits?+
Apply online at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office. There's no cost to apply. Official forms and instructions: https://www.ssa.gov/benefits/retirement/planner/delayret.html.
Where can I get help?+
Create a free account at ssa.gov/myaccount to check your earnings record and benefit estimate. BenefitKarma's free Benefit Eligibility Screener can also point you to the right Social Security program.
Source: ssa.gov