What does a delayed retirement credit do?

What does a delayed retirement credit do?

• A. Eight percent increase in the primary insurance amount for workers born in 1943 or later.
• B. A three percent per year increase from full retirement age.
• C. A ten percent increase if delaying until age 70.
• D. No increase.

Answer: (A)

Delaying retirement beyond your full retirement age earns a delayed retirement credit that boosts your Social Security benefit. For people born in 1943 or later, the credit is 8% for each year you delay past the full retirement age, up to age 70. So waiting one year adds 8%, two years adds 16%, and so on, with a maximum boost by age 70 (the total increase depends on the exact FRA for your birth year). This is why the statement about an eight percent increase is the best description. The other options give the wrong rate, the wrong timing, or claim no increase, which doesn’t align with how delayed retirement credits work.

Delaying retirement beyond your full retirement age earns a delayed retirement credit that boosts your Social Security benefit. For people born in 1943 or later, the credit is 8% for each year you delay past the full retirement age, up to age 70. So waiting one year adds 8%, two years adds 16%, and so on, with a maximum boost by age 70 (the total increase depends on the exact FRA for your birth year). This is why the statement about an eight percent increase is the best description. The other options give the wrong rate, the wrong timing, or claim no increase, which doesn’t align with how delayed retirement credits work.