BBSinger wrote:I assume my new monthly benefit would be (1000*.8) + (1000*.16) this would be 800 + 160 = total of 960.
I beleive that the final benefit you are suggesting is incorrect.
Social Security POMS RS 00615.692 Amount of Credit
, subsection A.POLICY
states that Delayed Retirement Credits (DRCs) are added to the PIA or the permanently reduced Retirement Insurance Benefit (RIB)
. Since your example involves starting monthly benefit amounts (MBAs) before FRA, you have a situation in which the DRCs are applied to the reduced RIB.RS 00615.692 Amount of Credit
, subsection B.PROCEDURE
supplies the formula to be used:
B.PROCEDURE wrote:To add DRCs use the formula below:
MBA times # of DRCs times .01 times fraction = credit
The monthly DRC fraction for people born after 1942 is 2/3%. (See the table in subsection C.CHART
.) So the monthly credit you will earn for the 24 months of DRCs is:
[$1000 x 0.80] x 24 x 0.01 x (2/3) = $128.
Thus your NEW Monthly Benefit Amount (ignoring inflation adjustments) should be $800 + $128 = $928.
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