For workers born in 1943 or later, what is the annual increase in the primary insurance amount due to the delayed retirement credit?

For workers born in 1943 or later, what is the annual increase in the primary insurance amount due to the delayed retirement credit?

• A. Three percent
• B. Eight percent
• C. Six percent
• D. Ten percent

Answer: (B)

Delaying retirement beyond your full retirement age earns a yearly increase called a delayed retirement credit, applied to your primary insurance amount (PIA). For workers born in 1943 or later, this annual increase is 8% for each year you delay, up to age 70. So waiting one year adds 8% to the PIA, two years add 16%, and you can reach a maximum of 32% if you delay for four years. That’s why the correct annual increase is 8 percent—the rate applies specifically to those born in 1943 or later. The smaller per-year credits apply to earlier birth years.

Delaying retirement beyond your full retirement age earns a yearly increase called a delayed retirement credit, applied to your primary insurance amount (PIA). For workers born in 1943 or later, this annual increase is 8% for each year you delay, up to age 70. So waiting one year adds 8% to the PIA, two years add 16%, and you can reach a maximum of 32% if you delay for four years. That’s why the correct annual increase is 8 percent—the rate applies specifically to those born in 1943 or later. The smaller per-year credits apply to earlier birth years.