{"id":445281,"date":"2022-05-11T17:45:00","date_gmt":"2022-05-11T14:45:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/understanding-social-security-how-much-does-my-social-security-benefit-increase-when-i-delay-filing\/"},"modified":"2022-05-11T17:45:00","modified_gmt":"2022-05-11T14:45:00","slug":"understanding-social-security-how-much-does-my-social-security-benefit-increase-when-i-delay-filing","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/understanding-social-security-how-much-does-my-social-security-benefit-increase-when-i-delay-filing\/","title":{"rendered":"#Understanding Social Security: How much does my Social Security benefit increase when I delay filing?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3dfb0383341\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3dfb0383341\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/understanding-social-security-how-much-does-my-social-security-benefit-increase-when-i-delay-filing\/#%E2%80%9CUnderstanding_Social_Security_How_much_does_my_Social_Security_benefit_increase_when_I_delay_filing%E2%80%9D\" >&#8220;Understanding Social Security: How much does my Social Security benefit increase when I delay filing?&#8221;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/understanding-social-security-how-much-does-my-social-security-benefit-increase-when-i-delay-filing\/#Jim_Blankenship\" >Jim Blankenship<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CUnderstanding_Social_Security_How_much_does_my_Social_Security_benefit_increase_when_I_delay_filing%E2%80%9D\"><\/span>&#8220;Understanding Social Security: How much does my Social Security benefit increase when I delay filing?&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000857448\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000857448\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       A recent email reads (in part) as follows:<\/p>\n<p> <em>I am <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roaching age 62 when I can file for my <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security. I have heard that if I file at age 62 my benefit will be penalized the most, and that if I wait to file my benefit will increase by 8% for every year that I wait<\/em>.<\/p>\n<p><em>Is this correct?<\/em><\/p>\n<div class=\"paywall\">\n       Dear reader,\u00a0<\/p>\n<p>You\u2019re partly correct, and you\u2019re on the right track with the rest of your statement, just a little off on the exact amounts.<\/p>\n<p>It is true that if you file for your Social Security benefit at age 62 your benefit will be reduced to the minimum amount. It is also true that for each year that you delay, your benefit will increase, but it\u2019s not always by 8% per year.<\/p>\n<p><strong>Read more about<\/strong> Social Security on MarketWatch<\/p>\n<p>To better understand the year-over-year increases, we need to review the rules about the early-filing reductions. For the 36 months nearest to your Full Retirement Age (67 for folks born in 1960 or later, a bit less for those who were born earlier), the reduction amounts to 5\/9 of 1% for each month. So if you file exactly 36 months (3 years), before your Full Retirement Age (FRA), the reduction to your benefit will be 20%. We get this result by multiplying 5\/9% by 36 (180\/9 = 20).<\/p>\n<p>For any months greater than 36 before your FRA, the reduction is calculated as 5\/12 of 1% per month. Effectively, this results in a 5% reduction in benefits for each 12-month period greater than three years before your FRA.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetPodcast\n            inline\n    scope-web,mobileapps\n    scope-web,mobileapps\n  article__inset\n          article__inset--type-InsetPodcast\n            article__inset--inline\n  \"><\/p>\n<div class=\"media-object-podcast\">\n<div id=\"\" class=\"audioplayer\" data-audio=\"1D981BA0-D4D1-40BA-9AF4-B62DE1B77A4D\" data-theme=\"wsj-article\" data-show-header=\"true\" data-show-subscribe=\"true\">\n<div class=\"audioPlayerInner\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       The maximum reduction in benefits occurs when you file for Social Security benefits at age 62, your earliest age of eligibility. If your FRA is 67, age 62 is 60 months (five years), before your FRA. So we know that there will be a reduction of 20% (since it\u2019s more than 36 months) plus the additional months greater than 36. 60 months minus 36 months equals 24 months. The reduction for this additional 24 months is 10%, as 24 times 5\/12% equals 10% (120\/12 = 10).<\/p>\n<p><strong>Read:<\/strong> A majority of workers have confidence in Social Security \u2014 should you?<\/p>\n<p>Then later, after FRA, there is another type of increase, called a Delayed Retirement Credit. This credit is 2\/3% per month, for a total of 8% for every year of delay. (This is where the 8% increase for each year of delay comes from, but it doesn\u2019t exactly work out like you\u2019d think. Read on.) To learn more about\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.google.com\/url?q=https:\/\/financialducksinarow.com\/10400\/delayed-retirement-credits-for-social-security\/&amp;sa=D&amp;source=editors&amp;ust=1651269590099317&amp;usg=AOvVaw38tAgGL0hlsnZsPIGvRMgH\" class=\"icon none\">Delayed Retirement Credits<\/a>, click this link.\u00a0<\/p>\n<p>In order to understand how much your benefit will increase for each year of delay (starting at age 62) we need to calculate the benefit amounts at each age level and compare. I\u2019ve put these in the following table, along with the year-over-year increase percentage:<\/p>\n<table>\n<tbody>\n<tr class=\"data odd\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      Age<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      Benefit amount<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      Year-over-year increase<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data even\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      62<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      $700<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      <\/td>\n<\/tr>\n<tr class=\"data odd\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      63<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      $750<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      7.14%<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data even\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      64<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      $800<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      6.67%<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data odd\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      65<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      $866.67<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      8.33%<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data even\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      66<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      $933.33<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      7.69%<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data odd\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      67<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      $1,000<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      7.14%<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data even\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      68<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      $1,080<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      8%<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data odd\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      69<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      $1,160<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      7.41%<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data even\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      70<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      $1,240<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      6.9%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>This table is based on someone who has a FRA of 67, and this person\u2019s benefit available at age 67 (also known as the Primary Insurance Amount, or PIA) is $1,000. You can see this by looking at the age 67 line, showing $1,000 of benefit.<\/p>\n<p>Annual COLAs (Cost of Living Adjustments) have not been factored into this table, as that would complicate matters and make it incomprehensible.<\/p>\n<p>As displayed in the table, the actual increase year-over-year ranges from as little as 6.67% up to 8.33% \u2014 it\u2019s not always an 8% increase year-to-year. In fact, even though 8% is quoted quite often (because it\u2019s the amount used for the calculation of DRCs), there is only one year-over-year period when the increase is exactly 8%, and that is the first year after your FRA. This is because the DRC increases are not compounded, but rather accumulative. The 8% delay credit for each year is simply added to the previous year\u2019s 8%, so two years\u2019 delay is 16%; three years is 24%, and so on.<\/p>\n<p>Because of this accumulative nature of the increase, the year-over-year rate of increase is less than 8% for each subsequent year.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jim Blankenship\",\"subhead\":\"The Wall Street Journal\",\"list\":[,{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/BlankenshipFP\",\"text\":\"@BlankenshipFP\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:helpmeretire@marketwatch.com\",\"text\":\"helpmeretire@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jim_Blankenship\"><\/span>Jim Blankenship<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7D15-6851AF8CB070%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Understanding Social Security: How much does my Social Security benefit increase when I delay filing?&#8221; A recent email reads (in part) as follows: I am approaching age 62 when I can file for my Social Security. I have heard that if I file at age 62 my benefit will be penalized the most, and that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":445282,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-541662\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-445281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/445281","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=445281"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/445281\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/445282"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=445281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=445281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=445281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}