UPDATE -Social Security - Delayed Retirement Credits Question
UPDATE -Social Security - Delayed Retirement Credits Question
I started taking SS benefits at age 69 in September 2023. First payment received in October 2023. My full retirement age is 66. Am I entitled to delayed retirement credits? I received the COLA this month but nothing for delayed retirement credits.
If I am entitled to delayed retirement credits, does SS automatically pay them or do I need to contact the SS Administration?
Thanks in advance to all who respond.
If I am entitled to delayed retirement credits, does SS automatically pay them or do I need to contact the SS Administration?
Thanks in advance to all who respond.
Last edited by antwerp on Wed Feb 07, 2024 10:55 am, edited 1 time in total.
Re: Social Security - Delayed Retirement Credits Question
I think the amount that they provide in the determination letter includes the DRCs
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
Re: Social Security - Delayed Retirement Credits Question
It is my understanding that your additional DRCs (for the 9 months) should be calculated this month (January 2024) and you should see the increase in your February payment.
I have interest in this subject as I turn 69 this year and opensocialsecurity, due to higher discount rates, is recommending I consider filing a few months before 70.
My understanding is that your September amount, paid in October, should have matched your last Social Security statement estimated amount, if you consulted it, earlier in 2023. Your payment should now be increased by 9 * 2/3% of your FRA above your current amount.
There have been some reports in the past where the amount was not automatically recalculated in January and paid in February (crefwatch, others?). In such case SS Administration had to be contacted to make it right. But, again, AFAIK, it should be automatic and reflected next month.
Appreciate a post next month if it is automatically updated.
FYI: The January award date is referenced here: https://secure.ssa.gov/apps10/poms.nsf/lnx/0300615690
Under section B: When Benefits Are Increased Because Of Increment Months
DRC increases are effective:
• in January of the year following the year the increment months were earned;
Regards.
I have interest in this subject as I turn 69 this year and opensocialsecurity, due to higher discount rates, is recommending I consider filing a few months before 70.
My understanding is that your September amount, paid in October, should have matched your last Social Security statement estimated amount, if you consulted it, earlier in 2023. Your payment should now be increased by 9 * 2/3% of your FRA above your current amount.
There have been some reports in the past where the amount was not automatically recalculated in January and paid in February (crefwatch, others?). In such case SS Administration had to be contacted to make it right. But, again, AFAIK, it should be automatic and reflected next month.
Appreciate a post next month if it is automatically updated.
FYI: The January award date is referenced here: https://secure.ssa.gov/apps10/poms.nsf/lnx/0300615690
Under section B: When Benefits Are Increased Because Of Increment Months
DRC increases are effective:
• in January of the year following the year the increment months were earned;
Regards.
Last edited by ezpath on Sat Jan 20, 2024 2:35 pm, edited 1 time in total.
Re: Social Security - Delayed Retirement Credits Question
Since you delayed claiming until age 69 SS would have made adjustments to your Primary insurance Amount (PIA). Added to your initial PIA are the annual COLA adjustments. COLA's compound thus increasing your PIA. As you claimed at 69 your adjusted PIA would be increased by 24% for Delayed Retirement Credits (DRC). DRC's are not compounded but added at time you claim benefits. Since you were almost 70 a fraction of 4th year 9% DRC credit will be added to the 24%. There may be a delay in SS including in your check the full DRC's but they will ultimately pay you what you're due.
Re: Social Security - Delayed Retirement Credits Question
I agree with the previous replies. First of all, you need your PIA. It was originally calculated for you back at age 62 and has been recalculated each year since then to include the latest COLA. Unfortunately, your online account at the SSA doesn't show it to you but it's essential information when you want to verify your benefit.antwerp wrote: Sat Jan 20, 2024 12:28 pm I started taking SS benefits at age 69 in September 2023. First payment received in October 2023. My full retirement age is 66. Am I entitled to delayed retirement credits? I received the COLA this month but nothing for delayed retirement credits.
If I am entitled to delayed retirement credits, does SS automatically pay them or do I need to contact the SS Administration?
Thanks in advance to all who respond.
If you don't know your current PIA, go to https://ssa.tools/ (a tool developed by Boglehead user gregable) and copy and paste in your Social Security earnings history from your online SSA account. The calculator at ssa.tools will calculate your current PIA for you. It will also show you your PIA for 2023, which you will need to verify the benefit you received for Sep, Oct and Nov 2023 was correct.
You have earned 36 DRCs but at the time you started your benefit in Sep 2023, you would have only been credited with what you earned through the end of 2022. You earned these DRCs each year since reaching FRA in Sep 2020:
Sep 2020-Dec 2020: 4
Jan 2021-Dec 2021: 12
Jan 2022-Dec 2022: 12
Total: 28 DRCs so your initial benefit in Sep 2023 should have been 1.18667 * your 2023 PIA. (28 DRCs * 2/3 * 1% = 18.667%)
Your Dec 2023 benefit (paid in Jan 2024) will be based on your 2024 PIA so the January benefit should be 1.18667 * your 2024 PIA.
In January you should receive credit for the final 8 DRCs, bringing the total to 36. Your new benefit for Jan 2024 (payable in Feb 2024) should be 1.24 * your 2024 PIA (36 DRCs * 2/3 * 1% = 24%).
ETA: If I did the math correctly, your Jan benefit (to be paid in Feb) should be about 4.49% higher than your Dec benefit that was paid in January, comparing the gross amounts before deductions for Medicare and withholding. Also, the gross benefit amount shown in your Social Security account may show the reduced amount after the clawback (of 10 cents to 90 cents) you lose when they round down to a whole dollar after deducting for Medicare.
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Re: Social Security - Delayed Retirement Credits Question
The Benefit Verification Letter you received from SSI stating what your monthly benefit will be in September 2023 (usually the second paragraph of the letter) is the amount of your benefit including the delayed retirement credits.antwerp wrote: Sat Jan 20, 2024 12:28 pm I started taking SS benefits at age 69 in September 2023. First payment received in October 2023. My full retirement age is 66. Am I entitled to delayed retirement credits? I received the COLA this month but nothing for delayed retirement credits.
If I am entitled to delayed retirement credits, does SS automatically pay them or do I need to contact the SS Administration?
On investing; I have lots of questions, many opinions, and little knowledge. A dangerous combination. Be warned.
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Re: Social Security - Delayed Retirement Credits Question
This topic is now in the Personal Finance (Not Investing) forum.
Re: Social Security - Delayed Retirement Credits Question
I think the SS Benefit Verification Letters may not be entirely accurate. I just received mine after claiming age 70 in January. It seems SS calculation only used 2023 COLA and DRC's but did not factor in prior year COLA's. This results in understand benefit amount.WeakOldGuy wrote: Sat Jan 20, 2024 6:57 pmThe Benefit Verification Letter you received from SSI stating what your monthly benefit will be in September 2023 (usually the second paragraph of the letter) is the amount of your benefit including the delayed retirement credits.antwerp wrote: Sat Jan 20, 2024 12:28 pm I started taking SS benefits at age 69 in September 2023. First payment received in October 2023. My full retirement age is 66. Am I entitled to delayed retirement credits? I received the COLA this month but nothing for delayed retirement credits.
If I am entitled to delayed retirement credits, does SS automatically pay them or do I need to contact the SS Administration?
I have been running my own SS calculator since age 60. It's spot on accurate. When I received letter I was surprised by amount so in my spreadsheet I zeroed out the pre '23 COLA's. This resulted in amount equal to that in SS letter. I'll wait until Feb deposit to see if it's calculated correctly.
Re: Social Security - Delayed Retirement Credits Question
I've heard of people receiving letters that did not yet include the latest COLA (particularly letters issued this time of year) but I've never heard of the problem you describe where none of the previous COLAs were applied.Redbard wrote: Sun Jan 21, 2024 6:43 amI think the SS Benefit Verification Letters may not be entirely accurate. I just received mine after claiming age 70 in January. It seems SS calculation only used 2023 COLA and DRC's but did not factor in prior year COLA's. This results in understand benefit amount.WeakOldGuy wrote: Sat Jan 20, 2024 6:57 pmThe Benefit Verification Letter you received from SSI stating what your monthly benefit will be in September 2023 (usually the second paragraph of the letter) is the amount of your benefit including the delayed retirement credits.antwerp wrote: Sat Jan 20, 2024 12:28 pm I started taking SS benefits at age 69 in September 2023. First payment received in October 2023. My full retirement age is 66. Am I entitled to delayed retirement credits? I received the COLA this month but nothing for delayed retirement credits.
If I am entitled to delayed retirement credits, does SS automatically pay them or do I need to contact the SS Administration?
I have been running my own SS calculator since age 60. It's spot on accurate. When I received letter I was surprised by amount so in my spreadsheet I zeroed out the pre '23 COLA's. This resulted in amount equal to that in SS letter. I'll wait until Feb deposit to see if it's calculated correctly.
The SSA calculates your new PIA every year starting at age 62, taking into account any new earnings and applying the latest COLA. Have you been checking your online SSA account each year? Your PIA would have been updated every year with the latest COLA.
I recommend trying the calculator at https://ssa.tools/. It is easy to use and provides a lot of information. It will show you your original PIA from age 62 and every new (COLA-adjusted) PIA since then. You can compare this calculators PIA history with your own records and see if there is a difference.
Re: Social Security - Delayed Retirement Credits Question
I have never been able to us the SS online calculator as it's unavailable if you are already receiving benefits. In my case I received survivor benefits from age 60 until claiming my own at 70. As an alternative, annually I went into SS office and had the print out my report with table showing "then" PIA and DRC's based on that date out to 70th birthday, without any COLA's included in calculations. In my own spreadsheet I've used amounts from table to confirm my calculations were accurate. Plus my sheet includes earnings table of top 35 and I run the SS bend point formula (updated to '24 bend points) so fairly sure I've got it right. If so, SS statement understates by ~$1,100.Chip Munk wrote: Sun Jan 21, 2024 12:02 pmI've heard of people receiving letters that did not yet include the latest COLA (particularly letters issued this time of year) but I've never heard of the problem you describe where none of the previous COLAs were applied.Redbard wrote: Sun Jan 21, 2024 6:43 amI think the SS Benefit Verification Letters may not be entirely accurate. I just received mine after claiming age 70 in January. It seems SS calculation only used 2023 COLA and DRC's but did not factor in prior year COLA's. This results in understand benefit amount.WeakOldGuy wrote: Sat Jan 20, 2024 6:57 pmThe Benefit Verification Letter you received from SSI stating what your monthly benefit will be in September 2023 (usually the second paragraph of the letter) is the amount of your benefit including the delayed retirement credits.antwerp wrote: Sat Jan 20, 2024 12:28 pm I started taking SS benefits at age 69 in September 2023. First payment received in October 2023. My full retirement age is 66. Am I entitled to delayed retirement credits? I received the COLA this month but nothing for delayed retirement credits.
If I am entitled to delayed retirement credits, does SS automatically pay them or do I need to contact the SS Administration?
I have been running my own SS calculator since age 60. It's spot on accurate. When I received letter I was surprised by amount so in my spreadsheet I zeroed out the pre '23 COLA's. This resulted in amount equal to that in SS letter. I'll wait until Feb deposit to see if it's calculated correctly.
The SSA calculates your new PIA every year starting at age 62, taking into account any new earnings and applying the latest COLA. Have you been checking your online SSA account each year? Your PIA would have been updated every year with the latest COLA.
I recommend trying the calculator at https://ssa.tools/. It is easy to use and provides a lot of information. It will show you your original PIA from age 62 and every new (COLA-adjusted) PIA since then. You can compare this calculators PIA history with your own records and see if there is a difference.
Re: Social Security - Delayed Retirement Credits Question
I am in the same situation -- my SSA account no longer shows me my PIA. That's why I use https://ssa.tools/ It was developed by a Boglehead user (gregable) and the only information you need from your SSA account is your earnings history. Just copy it from your account and paste it into ssa.tools. The developers claim all calculations are done locally (not on a server somewhere) and they don't save any of your data. I suggested comparing your own calculations with the results from ssa.tools just to see if they agree but it sounds like your own calculator has already proven itself by comparing the results every year to the current COLA-adjusted PIA you got from the local SS office.Redbard wrote: Sun Jan 21, 2024 12:33 pmI have never been able to us the SS online calculator as it's unavailable if you are already receiving benefits. In my case I received survivor benefits from age 60 until claiming my own at 70. As an alternative, annually I went into SS office and had the print out my report with table showing "then" PIA and DRC's based on that date out to 70th birthday. In my own spreadsheet I've used amounts from table to confirm my calculations were accurate. Plus my sheet includes earnings table of top 35 and I run the SS bend point formula (updated to '24 bend points) so fairly sure I've got it right. If so, SS statement understates by ~$1,100.Chip Munk wrote: Sun Jan 21, 2024 12:02 pmI've heard of people receiving letters that did not yet include the latest COLA (particularly letters issued this time of year) but I've never heard of the problem you describe where none of the previous COLAs were applied.Redbard wrote: Sun Jan 21, 2024 6:43 am I think the SS Benefit Verification Letters may not be entirely accurate. I just received mine after claiming age 70 in January. It seems SS calculation only used 2023 COLA and DRC's but did not factor in prior year COLA's. This results in understand benefit amount.
I have been running my own SS calculator since age 60. It's spot on accurate. When I received letter I was surprised by amount so in my spreadsheet I zeroed out the pre '23 COLA's. This resulted in amount equal to that in SS letter. I'll wait until Feb deposit to see if it's calculated correctly.
The SSA calculates your new PIA every year starting at age 62, taking into account any new earnings and applying the latest COLA. Have you been checking your online SSA account each year? Your PIA would have been updated every year with the latest COLA.
I recommend trying the calculator at https://ssa.tools/. It is easy to use and provides a lot of information. It will show you your original PIA from age 62 and every new (COLA-adjusted) PIA since then. You can compare this calculators PIA history with your own records and see if there is a difference.
Re: Social Security - Delayed Retirement Credits Question
OK I ran my history thru the SSA Tools Calculator, which seems very useful.Chip Munk wrote: Sun Jan 21, 2024 12:59 pm I suggested comparing your own calculations with the results from ssa.tools just to see if they agree but it sounds like your own calculator has already proven itself by comparing the results every year to the current COLA-adjusted PIA you got from the local SS office.
Does this calculator take into account compounding prior years COLA %'s, then this years COLA and then % DRC's depending what year you drag slider to?
Re: Social Security - Delayed Retirement Credits Question
Yes, it takes into account every COLA to date. Under "Primary Insurance Amount (PIA): $x,xxx.xx/mo, click on "Expand for a detailed look at the Primary Insurance Amount". It shows you how your original PIA was calculated at age 62 and then further down, below the paragraph starting with "After attaining age 62, your primary insurance amount will increase annually..." there is a list of every COLA-adjusted PIA to date.Redbard wrote: Sun Jan 21, 2024 1:26 pmOK I ran my history thru the SSA Tools Calculator, which seems very useful.Chip Munk wrote: Sun Jan 21, 2024 12:59 pm I suggested comparing your own calculations with the results from ssa.tools just to see if they agree but it sounds like your own calculator has already proven itself by comparing the results every year to the current COLA-adjusted PIA you got from the local SS office.
Does this calculator take into account compounding prior years COLA %'s, then this years COLA and then % DRC's depending what year you drag slider to?
RE: DRCs, under "Explore Filing Dates" the interactive tool shows you how the DRCs you've earned will increase your benefit, at least in my case it does (I'm not yet age 70). If someone is already at or over 70, I don't know what it might show. There is more information about what that interactive chart is showing you here: https://ssa.tools/guides/filing-date-chart ETA: My DH is over 70 and when I run ssa.tools with his data I am able to drag the slider anywhere between age 62 and age 70. I noticed the benefit ssa.tools shows for him at age 70 is one dollar lower than his actual benefit when both are rounded down to the nearest dollar. I think ssa.tools may be taking his PIA, rounding down to a whole dollar and multiplying by 1.32 rather than taking the current PIA, multiplying by 1.32 and then rounding down. (The actual calculation done by the SSA is slightly more complicated.)
ETA: After I copied my earnings history from my SSA account, I pasted the data into a spreadsheet. I'm retired and my data will never change so anytime I want to re-run the ssa.tools calculator, I can copy the data from my spreadsheet rather than log in to my SSA account.
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Re: Social Security - Delayed Retirement Credits Question
I've created my own spreadsheet to do those calculations. It pales in comparison to the tool you just linked. Thank you.Chip Munk wrote: Sun Jan 21, 2024 12:02 pm I recommend trying the calculator at https://ssa.tools/. It is easy to use and provides a lot of information. It will show you your original PIA from age 62 and every new (COLA-adjusted) PIA since then. You can compare this calculators PIA history with your own records and see if there is a difference.
On investing; I have lots of questions, many opinions, and little knowledge. A dangerous combination. Be warned.
Re: Social Security - Delayed Retirement Credits Question
OK I ran my history thru the SSA Tools Calculator, which seems very useful.Chip Munk wrote: Sun Jan 21, 2024 12:59 pm I suggested comparing your own calculations with the results from ssa.tools just to see if they agree but it sounds like your own calculator has already proven itself by comparing the results every year to the current COLA-adjusted PIA you got from the local SS office.
Does this calculator take into account compounding prior years COLA %'s, then this years COLA and then % DRC's depending what year you drag slider to?
[/quote]
Yes, it takes into account every COLA to date. Under "Primary Insurance Amount (PIA): $x,xxx.xx/mo, click on "Expand for a detailed look at the Primary Insurance Amount". It shows you how your original PIA was calculated at age 62 and then further down, below the paragraph starting with "After attaining age 62, your primary insurance amount will increase annually..." there is a list of every COLA-adjusted PIA to date.
[/quote]
OK found something...
On SSA Tools page "Expand for a detailed look at the Primary Insurance Amount"
There is an error in the bend point amounts used for calculaton of PIA.
Well, not exatly an error but SS has changed bend points for 2024.
Was
Any amount less than $856 is multiplied by 90%:
The amount more than $856 and less than $5,157 is multiplied by 32%:2
Any remaining amount more than $5,157 is multiplied by 15%:
Now
Any amount less than $1,164 is multiplied by 90%:
The amount more than $1,164 and less than $7,078 is multiplied by 32%:2
Any remaining amount more than $7,078 is multiplied by 15%:
source:
https://www.ssa.gov/OACT/COLA/piaformula.html
Re: Social Security - Delayed Retirement Credits Question
From the source you linked:Redbard wrote: Sun Jan 21, 2024 4:07 pm OK found something...
On SSA Tools page "Expand for a detailed look at the Primary Insurance Amount"
There is an error in the bend point amounts used for calculaton of PIA.
Well, not exatly an error but SS has changed bend points for 2024.
Was
Any amount less than $856 is multiplied by 90%:
The amount more than $856 and less than $5,157 is multiplied by 32%:2
Any remaining amount more than $5,157 is multiplied by 15%:
Now
Any amount less than $1,164 is multiplied by 90%:
The amount more than $1,164 and less than $7,078 is multiplied by 32%:2
Any remaining amount more than $7,078 is multiplied by 15%:
source:
https://www.ssa.gov/OACT/COLA/piaformula.html
ssa.tools is using the bend points for 2016, so you must have entered your birth year as 1954.PIA formula bend points
The PIA is the sum of three separate percentages of portions of average indexed monthly earnings. The portions depend on the year in which a worker attains age 62, becomes disabled before age 62, or dies before attaining age 62.
The new 2024 bend points ($1,174 and $7,708) would be used to calculate the initial PIA for those turning 62 in 2024. To demonstrate this, run the tool again but enter 1962 as your birth year. The ssa.tools calculator would then use the 2024 bend points because someone born in 1962 turns 62 in 2024.
ETA: There is an example here: https://www.ssa.gov/oact/progdata/retirebenefit2.html showing how different bend points are used based on the year in which the person turned 62. Case A turns 62 in 2024 so the 2024 bend points are used but in Case B the person turned 62 in 2020 so the 2020 bend points are used.
Re: Social Security - Delayed Retirement Credits Question
OK, thank you, didn't realize new 2024 bend points are for those turning 62 in 2024.
Re: Social Security - Delayed Retirement Credits Question
Yes, technically speaking the bend points for each person are fixed in the year they turn 62. However these are automatically calculated from wage indices, so for folks not yet 62 it's reasonable to just use the latest bend points and assume the actual numbers will be roughly that, adjusted for inflation (well, average wage).Redbard wrote: Sun Jan 21, 2024 4:53 pm OK, thank you, didn't realize new 2024 bend points are for those turning 62 in 2024.
If you are older than 62, the bend points are fixed but you start to get COLA adjustments which have a similar effect but are instead based on CPI inflation.
Re: Social Security - Delayed Retirement Credits Question
When I created my SS-calculation spreadsheet 13 years ago this summer, at age 57, I included a column for the average wage index for each year that I had earnings. I carried the most recent value forward until age 60, the last value that the SSA uses. Every year afterward, after the new AWI was announced, I inserted it and carried it forward. This increased my projected PIA and benefit by the same percentage as the increase in the AWI, over and above any increase from additional earnings.
In the fall of my age-61 year, the age-60 AWI was announced, which let me complete the calculation for my initial PIA at age 62.
In the fall of my age-61 year, the age-60 AWI was announced, which let me complete the calculation for my initial PIA at age 62.
Last edited by 22twain on Mon Jan 22, 2024 11:13 am, edited 1 time in total.
Principal, not principle. Roth, not ROTH. IRMAA, not IRRMA or IRMMA.
Re: Social Security - Delayed Retirement Credits Question
Thanks for that information and a huge thanks to you for creating ssa.tools and sharing it with all of us. It is such a pleasure to use. The UI is excellent and the information is presented in a way that makes the somewhat complicated aspects of Social Security's PIA and benefit calculations easy to understand.gregable wrote: Mon Jan 22, 2024 12:36 amYes, technically speaking the bend points for each person are fixed in the year they turn 62. However these are automatically calculated from wage indices, so for folks not yet 62 it's reasonable to just use the latest bend points and assume the actual numbers will be roughly that, adjusted for inflation (well, average wage).Redbard wrote: Sun Jan 21, 2024 4:53 pm OK, thank you, didn't realize new 2024 bend points are for those turning 62 in 2024.
If you are older than 62, the bend points are fixed but you start to get COLA adjustments which have a similar effect but are instead based on CPI inflation.
Re: Social Security - Delayed Retirement Credits Question
I will verify this with SS Admin. Many thanks to all who replied and the BH community in general. Much appreciated.WeakOldGuy wrote: Sat Jan 20, 2024 6:57 pmThe Benefit Verification Letter you received from SSI stating what your monthly benefit will be in September 2023 (usually the second paragraph of the letter) is the amount of your benefit including the delayed retirement credits.antwerp wrote: Sat Jan 20, 2024 12:28 pm I started taking SS benefits at age 69 in September 2023. First payment received in October 2023. My full retirement age is 66. Am I entitled to delayed retirement credits? I received the COLA this month but nothing for delayed retirement credits.
If I am entitled to delayed retirement credits, does SS automatically pay them or do I need to contact the SS Administration?
Re: Social Security - Delayed Retirement Credits Question
Please update this thread when you get your January benefit (in February) and let us know if you get that last bump of 4.5% or so (over your prior month's gross amount) for those final 8 DRCs. Most people do get the updated amount on time but some don't and have to call the SSA to get those final credits.antwerp wrote: Mon Jan 22, 2024 11:10 amI will verify this with SS Admin. Many thanks to all who replied and the BH community in general. Much appreciated.WeakOldGuy wrote: Sat Jan 20, 2024 6:57 pmThe Benefit Verification Letter you received from SSI stating what your monthly benefit will be in September 2023 (usually the second paragraph of the letter) is the amount of your benefit including the delayed retirement credits.antwerp wrote: Sat Jan 20, 2024 12:28 pm I started taking SS benefits at age 69 in September 2023. First payment received in October 2023. My full retirement age is 66. Am I entitled to delayed retirement credits? I received the COLA this month but nothing for delayed retirement credits.
If I am entitled to delayed retirement credits, does SS automatically pay them or do I need to contact the SS Administration?
Re: Social Security - Delayed Retirement Credits Question
Glad the site has been helpful. I have enjoyed the feedback from folks who have found it to be useful over the years. Keeps me motivated to go back and improve it further now and then.Chip Munk wrote: Mon Jan 22, 2024 10:49 amThanks for that information and a huge thanks to you for creating ssa.tools and sharing it with all of us. It is such a pleasure to use. The UI is excellent and the information is presented in a way that makes the somewhat complicated aspects of Social Security's PIA and benefit calculations easy to understand.gregable wrote: Mon Jan 22, 2024 12:36 amYes, technically speaking the bend points for each person are fixed in the year they turn 62. However these are automatically calculated from wage indices, so for folks not yet 62 it's reasonable to just use the latest bend points and assume the actual numbers will be roughly that, adjusted for inflation (well, average wage).Redbard wrote: Sun Jan 21, 2024 4:53 pm OK, thank you, didn't realize new 2024 bend points are for those turning 62 in 2024.
If you are older than 62, the bend points are fixed but you start to get COLA adjustments which have a similar effect but are instead based on CPI inflation.
Re: UPDATE - Social Security - Delayed Retirement Credits Question
UPDATE:Chip Munk wrote: Mon Jan 22, 2024 11:18 amPlease update this thread when you get your January benefit (in February) and let us know if you get that last bump of 4.5% or so (over your prior month's gross amount) for those final 8 DRCs. Most people do get the updated amount on time but some don't and have to call the SSA to get those final credits.antwerp wrote: Mon Jan 22, 2024 11:10 amI will verify this with SS Admin. Many thanks to all who replied and the BH community in general. Much appreciated.WeakOldGuy wrote: Sat Jan 20, 2024 6:57 pmThe Benefit Verification Letter you received from SSI stating what your monthly benefit will be in September 2023 (usually the second paragraph of the letter) is the amount of your benefit including the delayed retirement credits.antwerp wrote: Sat Jan 20, 2024 12:28 pm I started taking SS benefits at age 69 in September 2023. First payment received in October 2023. My full retirement age is 66. Am I entitled to delayed retirement credits? I received the COLA this month but nothing for delayed retirement credits.
If I am entitled to delayed retirement credits, does SS automatically pay them or do I need to contact the SS Administration?
I contacted my local SSA office by telephone last month. The representative who originally answered my call put me on hold while he consulted with what he called “a more experienced co-worker”. Apparently he did not understand my inquiry regarding Delayed Retirement Credits.
He came back later and explained that I am entitled to the DLC’s and I will be receiving a letter within 7-10 days confirming the increase in my benefit. Today I received the letter and the increase into my checking account for the January payment as it was retroactive. The rep did say that the SSA system will automatically flag DLC’s and apply them but since I called they will process it now.
Going forward beginning with the February payment I will be receiving the increased benefit which amounts to a 4.5% increase to my prior benefit.
My experience and contact with SSA regarding DLC’s leaves me feeling that it is such an esoteric subject with some of the SSA staff. Admittedly, If not for this forum, I would not know anything about them either.
The wealth of knowledge for the BH community continues to amaze me. Many thanks to all.
Re: UPDATE - Social Security - Delayed Retirement Credits Question
Going back to your original post, when you mentioned you received nothing for delayed retirement credits, I had assumed you meant the DRCs for Jan-Aug 2023. Did you mean that your initial SS payments did not include credit for any DRCs at all, not even the 28 DRCs for the months from FRA to December of 2022? If so, wow, that is a huge error on the part of the SSA and it's good that you called them.antwerp wrote: Wed Feb 07, 2024 10:05 am UPDATE:
I contacted my local SSA office by telephone last month. The representative who originally answered my call put me on hold while he consulted with what he called “a more experienced co-worker”. Apparently he did not understand my inquiry regarding Delayed Retirement Credits.
He came back later and explained that I am entitled to the DLC’s and I will be receiving a letter within 7-10 days confirming the increase in my benefit. Today I received the letter and the increase into my checking account for the January payment as it was retroactive. The rep did say that the SSA system will automatically flag DLC’s and apply them but since I called they will process it now.
So the retroactive payment you received in January was for the additional 18.667% * your PIA that should have been included in your benefit payments for Sep-Dec 2022?
With the 4.5% increase starting in the February payment you should be all set from now on. I agree that if one needs to contact the SSA for anything beyond the basics, it's best to educate yourself first. I've had conversations with SSA reps where I had to point them to the relevant section in their own operations manual before they would agree to look into an issue. I'm somewhat sympathetic because there are a lot of rules and exceptions and changes in the law over time. Couple that with antiquated software and some calculations having to be done by hand and you have ample opportunity for mistakes and oversights.Going forward beginning with the February payment I will be receiving the increased benefit which amounts to a 4.5% increase to my prior benefit.
My experience and contact with SSA regarding DLC’s leaves me feeling that it is such an esoteric subject with some of the SSA staff. Admittedly, If not for this forum, I would not know anything about them either.
The wealth of knowledge for the BH community continues to amaze me. Many thanks to all.
Re: UPDATE - Social Security - Delayed Retirement Credits Question
I should have been more clear in my original post. I did receive DRCs in my initial SS payments. The only DRCs I was due were the remaining 8 months which I am now receiving.Chip Munk wrote: Wed Feb 07, 2024 1:49 pmGoing back to your original post, when you mentioned you received nothing for delayed retirement credits, I had assumed you meant the DRCs for Jan-Aug 2023. Did you mean that your initial SS payments did not include credit for any DRCs at all, not even the 28 DRCs for the months from FRA to December of 2022? If so, wow, that is a huge error on the part of the SSA and it's good that you called them.antwerp wrote: Wed Feb 07, 2024 10:05 am UPDATE:
I contacted my local SSA office by telephone last month. The representative who originally answered my call put me on hold while he consulted with what he called “a more experienced co-worker”. Apparently he did not understand my inquiry regarding Delayed Retirement Credits.
He came back later and explained that I am entitled to the DLC’s and I will be receiving a letter within 7-10 days confirming the increase in my benefit. Today I received the letter and the increase into my checking account for the January payment as it was retroactive. The rep did say that the SSA system will automatically flag DLC’s and apply them but since I called they will process it now.
So the retroactive payment you received in January was for the additional 18.667% * your PIA that should have been included in your benefit payments for Sep-Dec 2022?
With the 4.5% increase starting in the February payment you should be all set from now on. I agree that if one needs to contact the SSA for anything beyond the basics, it's best to educate yourself first. I've had conversations with SSA reps where I had to point them to the relevant section in their own operations manual before they would agree to look into an issue. I'm somewhat sympathetic because there are a lot of rules and exceptions and changes in the law over time. Couple that with antiquated software and some calculations having to be done by hand and you have ample opportunity for mistakes and oversights.Going forward beginning with the February payment I will be receiving the increased benefit which amounts to a 4.5% increase to my prior benefit.
My experience and contact with SSA regarding DLC’s leaves me feeling that it is such an esoteric subject with some of the SSA staff. Admittedly, If not for this forum, I would not know anything about them either.
The wealth of knowledge for the BH community continues to amaze me. Many thanks to all.
Re: UPDATE - Social Security - Delayed Retirement Credits Question
antwerp wrote: Wed Feb 07, 2024 6:04 pm Today I received the letter and the increase into my checking account for the January payment as it was retroactive. The rep did say that the SSA system will automatically flag DLC’s and apply them but since I called they will process it now.
OK good, but then I'm confused about the statement above that you received "the increase into my checking account for the January payment as it was retroactive". If your remaining 8 DRCs were correctly credited in January, you will see the effect starting with the payment you receive in February. So I wonder why they paid you a retroactive payment.antwerp wrote: Wed Feb 07, 2024 10:05 am I should have been more clear in my original post. I did receive DRCs in my initial SS payments. The only DRCs I was due were the remaining 8 months which I am now receiving.
Re: UPDATE - Social Security - Delayed Retirement Credits Question
Chip Munk wrote: Wed Feb 07, 2024 6:40 pmantwerp wrote: Wed Feb 07, 2024 6:04 pm Today I received the letter and the increase into my checking account for the January payment as it was retroactive. The rep did say that the SSA system will automatically flag DLC’s and apply them but since I called they will process it now.OK good, but then I'm confused about the statement above that you received "the increase into my checking account for the January payment as it was retroactive". If your remaining 8 DRCs were correctly credited in January, you will see the effect starting with the payment you receive in February. So I wonder why they paid you a retroactive payment.antwerp wrote: Wed Feb 07, 2024 10:05 am I should have been more clear in my original post. I did receive DRCs in my initial SS payments. The only DRCs I was due were the remaining 8 months which I am now receiving.
I don't know why they credited the DRC for January retroactively. I can only speculate that the DRCs were due to be paid in January payment and they weren't.
Re: UPDATE - Social Security - Delayed Retirement Credits Question
I delayed 44 months. My local office confirmed that the calculations in my case were a problem but told me I needed to submit a Request for Reconsideration SSA-561.UPDATE:
I contacted my local SSA office by telephone last month...
He came back later and explained that I am entitled to the DLC’s and I will be receiving a letter within 7-10 days confirming the increase in my benefit. Today I received the letter and the increase into my checking account for the January payment as it was retroactive. The rep did say that the SSA system will automatically flag DLC’s and apply them but since I called they will process it now...
My experience and contact with SSA regarding DLC’s leaves me feeling that it is such an esoteric subject with some of the SSA staff. Admittedly, If not for this forum, I would not know anything about them either...
It's been over six months now. My local congressman's staff has inquired twice as to status with no reply.
Re: UPDATE -Social Security - Delayed Retirement Credits Question
I am in a similar situation. We may have to wait up to 2 years before we get all the DRCs credited when they run their automatic DRCs. Checkout these links from MMSS.
https://maximizemysocialsecurity.com/do ... in-patient
https://maximizemysocialsecurity.com/fe ... rding-drcs
I applied at 69 and a half in September and got DRCs up to my 69th birthday (March 2023), missing 6 months of DRCs. When my February check did not show the 6 months DRCs (as many have stated in this blog), I thought I’ll go to the SS local office and give it a try. I was assigned to a nice agent (which is rare with the government) and she took my information to the back office to meet with others and came back about 20 minutes later with some scratch paper with numbers and said I was right and she’s going to push it manually to processing center #3 to recalculate. She could not confirm the amount but assured it will all be paid in arrears.
She told me I should be hearing from the SS within 30 to 45 days and if I don’t, to go back to the local office as now there is a documented trail.
Honestly, I don’t have much hope and probably not sweat it and wait patiently for 2 years. Well 18 months now
In hindsight, looking back, I should have just waited till 70.
Appealing or going to your congress rep is futile. Many have tried but in vain.
https://maximizemysocialsecurity.com/do ... in-patient
https://maximizemysocialsecurity.com/fe ... rding-drcs
I applied at 69 and a half in September and got DRCs up to my 69th birthday (March 2023), missing 6 months of DRCs. When my February check did not show the 6 months DRCs (as many have stated in this blog), I thought I’ll go to the SS local office and give it a try. I was assigned to a nice agent (which is rare with the government) and she took my information to the back office to meet with others and came back about 20 minutes later with some scratch paper with numbers and said I was right and she’s going to push it manually to processing center #3 to recalculate. She could not confirm the amount but assured it will all be paid in arrears.
She told me I should be hearing from the SS within 30 to 45 days and if I don’t, to go back to the local office as now there is a documented trail.
Honestly, I don’t have much hope and probably not sweat it and wait patiently for 2 years. Well 18 months now
In hindsight, looking back, I should have just waited till 70.
Appealing or going to your congress rep is futile. Many have tried but in vain.
Re: UPDATE -Social Security - Delayed Retirement Credits Question
It is odd they gave you DRCs through March. Typically DRCs are applied up to the end of the previous year. You should see if SSA may have applied the 6-month retroactive option when applying after FRA. If that is the case, then you will never get the additional 4 DRCs.s9m wrote: Mon Feb 26, 2024 1:02 pm I am in a similar situation. We may have to wait up to 2 years before we get all the DRCs credited when they run their automatic DRCs. Checkout these links from MMSS.
https://maximizemysocialsecurity.com/do ... in-patient
https://maximizemysocialsecurity.com/fe ... rding-drcs
I applied at 69 and a half in September and got DRCs up to my 69th birthday (March 2023), missing 6 months of DRCs. When my February check did not show the 6 months DRCs (as many have stated in this blog), I thought I’ll go to the SS local office and give it a try. I was assigned to a nice agent (which is rare with the government) and she took my information to the back office to meet with others and came back about 20 minutes later with some scratch paper with numbers and said I was right and she’s going to push it manually to processing center #3 to recalculate. She could not confirm the amount but assured it will all be paid in arrears.
She told me I should be hearing from the SS within 30 to 45 days and if I don’t, to go back to the local office as now there is a documented trail.
Honestly, I don’t have much hope and probably not sweat it and wait patiently for 2 years. Well 18 months now
In hindsight, looking back, I should have just waited till 70.
Appealing or going to your congress rep is futile. Many have tried but in vain.
Re: UPDATE -Social Security - Delayed Retirement Credits Question
First of all, welcome to Bogleheads!s9m wrote: Mon Feb 26, 2024 1:02 pm I am in a similar situation. We may have to wait up to 2 years before we get all the DRCs credited when they run their automatic DRCs. Checkout these links from MMSS.
https://maximizemysocialsecurity.com/do ... in-patient
https://maximizemysocialsecurity.com/fe ... rding-drcs
I remember reading those two "Ask Larry" questions a few years ago. The stories are troubling for someone waiting for their last DRCs. Fortunately I have not read any reports here of anyone having to wait that long, though I do remember one case that dragged on for several months. Maybe things have improved since those questions were submitted. Let's hope so.
So your starting benefit included credit for 36 DRCs instead of 34? In other words, your initial benefit was 1.24 * your 2023 Primary Insurance Amount, rather than 1.2267 * your 2023 PIA? If so, that's a mistake and I suspect that at some point they will catch it and ask you to pay back the amount you were overpaid.I applied at 69 and a half in September and got DRCs up to my 69th birthday (March 2023), missing 6 months of DRCs.
Re: UPDATE -Social Security - Delayed Retirement Credits Question
Thanks for the welcome.
No, I am getting 36 DRCs instead of 42. My birthday is March 1954. I applied for benefits starting at age 69 years 6 months (42 months after FRA). The payment I got in October for September 2023 was the exact amount in my January 2023 statement for age 69. This is the statement in the online account that provides you the estimates for different ages and at end of each year.
No, I am getting 36 DRCs instead of 42. My birthday is March 1954. I applied for benefits starting at age 69 years 6 months (42 months after FRA). The payment I got in October for September 2023 was the exact amount in my January 2023 statement for age 69. This is the statement in the online account that provides you the estimates for different ages and at end of each year.
Re: UPDATE -Social Security - Delayed Retirement Credits Question
The amount in the January 2023 statement includes DRCs earned through Dec 2022. I calculate 34 DRCs: 10 for Mar-Dec 2020, 12 for Jan-Dec 2021 and 12 for Jan-Dec 2022. Your initial benefit as of Sep 2023 would be 1.2267 * your 2023 PIA. (1+(34 * (0.08/12)) = 1.2267.s9m wrote: Wed Feb 28, 2024 11:41 am Thanks for the welcome.
No, I am getting 36 DRCs instead of 42. My birthday is March 1954. I applied for benefits starting at age 69 years 6 months (42 months after FRA). The payment I got in October for September 2023 was the exact amount in my January 2023 statement for age 69. This is the statement in the online account that provides you the estimates for different ages and at end of each year.
Your benefit for Dec 2023 (paid in Jan 2024) includes the 2024 COLA, but still includes just 34 DRCs: 1.2267 * your 2024 PIA.
Your Jan 2024 benefit (paid in Feb) should have included 8 more DRCs (for Jan-Aug 2023). Once they apply those to your account, your new benefit should be 1.28 * (2024 PIA).
You can verify this if you know your PIA for 2023 and 2024. If you don't know your PIA, (and many people do not because it's not displayed in your SSA account once you have been credited with any DRCs) copy and paste your earnings history from your online SSA account into https://ssa.tools/ It will calculate your PIA for every year since age 62. Using the PIA for 2023, multiply by 1.2267 and I expect it will match your benefit for Sep 2023.*
Using the PIA for 2024, multiply it by 1.28 to calculate your increased benefit once they finally credit you with your final 8 DRCs.
* The amount they pay you will be $0.00 - $0.90 less than your actual monthly benefit due to rounding down to a whole dollar after deducting for Medicare.
ETA: I find those SSA statements confusing. When they state "Your benefit at age 69" what they really mean is "your benefit as of January of the year in which you turn age 69, including DRCs earned through December of the previous year". It does not mean "your benefit including all DRCs earned up to age 69". The good news for you is that the increase you are now due for your final DRCs will be larger than you expected.
Re: UPDATE -Social Security - Delayed Retirement Credits Question
Wow! That tool is really great. Thanks to all who are contributing here.
Using the tool, my benefit matches what I was getting in September 2023 (to the dollar), like you expected. Then using the 2024 PIA and multiplying by 1.28, my benefit should increase by $191/month from what I am getting currently. The calculator adjusts for COLA. Thanks, Chip Munk.
That's the good news. Now the bad news is ... when am I going to get it.
Using the tool, my benefit matches what I was getting in September 2023 (to the dollar), like you expected. Then using the 2024 PIA and multiplying by 1.28, my benefit should increase by $191/month from what I am getting currently. The calculator adjusts for COLA. Thanks, Chip Munk.
That's the good news. Now the bad news is ... when am I going to get it.
Re: UPDATE -Social Security - Delayed Retirement Credits Question
I finally got all my DRCs starting January 2024 in April and I am good going forward. However, I am still missing my DRCS for Sep -Dec 2023 (4 months). I went to the SS office and the agent said they were still working on it (for 2023) and she will send a message to the regional center to see why the hold-up. She provided me with her direct email address and phone number and asked me to check with her for status in 2 weeks. I think finally it's moving and this saga should be over for me.
Re: UPDATE -Social Security - Delayed Retirement Credits Question
Could somebody take a look at my figures and see if I have correctly calulated and in the correct order my drc the way SS would. my info is below.
My SS was suspended in sept. 2021 so I have 3 drc for 2021 (oct. nov. & dec.)
Resumed 1/2024 for a total of 27 drc credits (3 (2021)+ 12 (year 2022)+ 12(year 2023))
The mba at that time (9-21) was $1483.50
So I take $1483.50 * (3 drc * 0.01 * (2/3))
Which equals $29.67 (rounded down to the next dime equals $1513.10
The cola (5.9% 2022) 89.20 is added to 1513.10 = 1602.30 (the new mba for 2022)
12 drc in year 2022 (1602.30 * (12 * .01*(2/3)) then rounded down or 128.10
1602.30 + 128.10 = 1730.40
New mba is 1730.40 plus the 2023 cola of 8.7% (150.50) = 1880.90
12 drc in year 2023 (1880.90 * (12 *.01 * (2/3))) = 150.4 rounded down to the next dime
150.40 + 1880.90 = 2031.30
Cola for 2024 of 3.2% would be 2031.30 *3.2% =65.
New mba w/cola for 2024 (2031.30 + 65.) 2096.3
Cola for 2025 2.5% (2096.30 *2.5%) =52.40
Mba for 2025 would be 2148.70
I've talked to a number of agents in the local office but none of the could tell me their process for this.
thanks dav
My SS was suspended in sept. 2021 so I have 3 drc for 2021 (oct. nov. & dec.)
Resumed 1/2024 for a total of 27 drc credits (3 (2021)+ 12 (year 2022)+ 12(year 2023))
The mba at that time (9-21) was $1483.50
So I take $1483.50 * (3 drc * 0.01 * (2/3))
Which equals $29.67 (rounded down to the next dime equals $1513.10
The cola (5.9% 2022) 89.20 is added to 1513.10 = 1602.30 (the new mba for 2022)
12 drc in year 2022 (1602.30 * (12 * .01*(2/3)) then rounded down or 128.10
1602.30 + 128.10 = 1730.40
New mba is 1730.40 plus the 2023 cola of 8.7% (150.50) = 1880.90
12 drc in year 2023 (1880.90 * (12 *.01 * (2/3))) = 150.4 rounded down to the next dime
150.40 + 1880.90 = 2031.30
Cola for 2024 of 3.2% would be 2031.30 *3.2% =65.
New mba w/cola for 2024 (2031.30 + 65.) 2096.3
Cola for 2025 2.5% (2096.30 *2.5%) =52.40
Mba for 2025 would be 2148.70
I've talked to a number of agents in the local office but none of the could tell me their process for this.
thanks dav
Re: UPDATE -Social Security - Delayed Retirement Credits Question
You need to know your Primary Insurance Amount (PIA) for 2025. If you don't have it, copy and paste your Social Security earnings history from your online Social Security account into the calculator at https://ssa.tools/ It will calculate your 2025 PIA.dav wrote: Wed Jan 29, 2025 10:13 am Could somebody take a look at my figures and see if I have correctly calulated and in the correct order my drc the way SS would. my info is below.
My SS was suspended in sept. 2021 so I have 3 drc for 2021 (oct. nov. & dec.)
Resumed 1/2024 for a total of 27 drc credits (3 (2021)+ 12 (year 2022)+ 12(year 2023))
Edited to add: the calculations below assume you initially claimed your Social Security benefit at or after your Full Retirement Age. If you initially claimed before FRA, your benefit would be reduced due to claiming early.
You state that you earned a total of 27 DRCs while your benefit was suspended. To calculate your 2025 benefit from your 2025 PIA:
Your 2025 benefit = (Your 2025 PIA) * [1 + (27 * 0.02/3)] rounded down to the nearest 10 cents. The SSA should have started paying you this amount starting with your Dec 2024 benefit, paid to you in January 2025. **
Repeat the process each year. Calculate your new PIA by applying the latest COLA to the prior year's PIA and rounding down to the nearest 10 cents. Then use your new PIA to calculate your new benefit by multiplying your new PIA by [1 + (27 * 0.02/3)] and rounding down to the nearest 10 cents.
When you say you suspended your benefit in Sep 2021, do you mean you did not receive a benefit for Sep 2021 (which would have been paid to you in Oct 2021)? If that's the case, you would be due 4 DRCs in 2021 (Sep, Oct, Nov, Dec) and your total DRCs would be 28 instead of 27. If you mean you did receive your Sep benefit (in Oct 2021) but nothing after that, then you are due 3 DRCs for 2021 as you stated and the total DRCs would be 27.
** They actually pay you up to 90 cents less than this amount due rounding down to a whole dollar after deducting for Medicare. So in some places the result of your calculation will match what they show as your current benefit, and in other places the current benefit will be shown after subtracting this small claw back amount of $0.10 to $0.90.
Last edited by Chip Munk on Fri Jan 31, 2025 11:14 am, edited 1 time in total.
Re: UPDATE -Social Security - Delayed Retirement Credits Question
I'm trying to see if they correctly figure it so I can't use their figures for 2025 because they would be based on that, correct?
I received SS for a little over a year before i suspended it and when its been suspened my SS site information is blank which SS says is normal and it is still not back 'on line'.
How would i figure it based on the PIA from say 2023 which i have a screen shot of.
I not sure how you applied the 27cr, is this correct take the year pia, add the the whole 27cr to it and then the cola then repeat for the next year? that seems like i would be getting to much as opposed to the PIA plus that years drc (not the whole 27 cr) then add the cola to it and do that for each of the years to I get to the current date.
the local office had no idea of how it figured they say it handle by some dept of the line not locally.
thank for helping, i tried to find an example on the SS site of the way its done but all i could find was if you had never started it, not started then stopped and restarted it.
dave
I received SS for a little over a year before i suspended it and when its been suspened my SS site information is blank which SS says is normal and it is still not back 'on line'.
How would i figure it based on the PIA from say 2023 which i have a screen shot of.
I not sure how you applied the 27cr, is this correct take the year pia, add the the whole 27cr to it and then the cola then repeat for the next year? that seems like i would be getting to much as opposed to the PIA plus that years drc (not the whole 27 cr) then add the cola to it and do that for each of the years to I get to the current date.
the local office had no idea of how it figured they say it handle by some dept of the line not locally.
thank for helping, i tried to find an example on the SS site of the way its done but all i could find was if you had never started it, not started then stopped and restarted it.
dave
Re: UPDATE -Social Security - Delayed Retirement Credits Question
I should have asked, when did you first claim Social Security? If you started before your Full Retirement Age, collected for a while then suspended some time after FRA the calculation would be different than what I posted above. There would be a reduction due to the months before FRA that you collected a benefit. If you initially claimed at/after FRA, then suspended, then resumed, you can calculate your benefit as shown in my previous post.
Your PIA changes every year even if you are no longer working because of the annual COLA. If you want to calculate your benefit for the current year or for a prior year, you need to know what your PIA was for that same year. For example, if you want to know if you received the correct amount in 2024, use your 2024 PIA to calculate your benefit:
Your 2024 benefit = (Your 2024 PIA) * [1 + (27 * 0.02/3)] rounded down to the nearest 10 cents, where 27 is the number of DRCs you said you earned, and assuming you never collected a benefit prior to Full Retirement Age.
Each year the process is the same. Calculate your new PIA, then apply an 18% increase (27 DRCs = 18%) to calculate your new benefit.
You are correct that once you start collecting, the Social Security website will no longer show you your PIA. That's a shame because that's the fundamental number you need to calculate your benefit. Fortunately, they still provide your earnings history. If you copy and paste your earnings history into the ssa.tools calculator at https://ssa.tools/ it will calculate your current (2025) PIA and provide you with your PIA history going back to age 62.
Once you have an accurate PIA, you can update it yourself every year by applying the new COLA to the prior year's PIA and rounding down to the nearest 10 cents, assuming you are no longer earning an income. If you have income that replaces one of your 35 highest inflation-adjusted earnings years, that needs to be included in the PIA calculation for the new year.
Your PIA changes every year even if you are no longer working because of the annual COLA. If you want to calculate your benefit for the current year or for a prior year, you need to know what your PIA was for that same year. For example, if you want to know if you received the correct amount in 2024, use your 2024 PIA to calculate your benefit:
Your 2024 benefit = (Your 2024 PIA) * [1 + (27 * 0.02/3)] rounded down to the nearest 10 cents, where 27 is the number of DRCs you said you earned, and assuming you never collected a benefit prior to Full Retirement Age.
Each year the process is the same. Calculate your new PIA, then apply an 18% increase (27 DRCs = 18%) to calculate your new benefit.
You are correct that once you start collecting, the Social Security website will no longer show you your PIA. That's a shame because that's the fundamental number you need to calculate your benefit. Fortunately, they still provide your earnings history. If you copy and paste your earnings history into the ssa.tools calculator at https://ssa.tools/ it will calculate your current (2025) PIA and provide you with your PIA history going back to age 62.
Once you have an accurate PIA, you can update it yourself every year by applying the new COLA to the prior year's PIA and rounding down to the nearest 10 cents, assuming you are no longer earning an income. If you have income that replaces one of your 35 highest inflation-adjusted earnings years, that needs to be included in the PIA calculation for the new year.
Re: UPDATE -Social Security - Delayed Retirement Credits Question
This I beleive is the anwsers you requested
FRA> 66y 2mo (8-2017)
started SS in July 2017 (rec. check in aug.) 62y 0 mo? 2months early of FRA?
last SS payment before suspension was in Oct 2021 for $1483.50 (suspended sept.) 66y 3 mo?
Renewed/restarted SS pmt started back 12-2023 (check in jan. (actually didnt get it till march*).
do I use the PIA for when it was suspended or when it started back up?
how can it be an 18% increase when the max is 8% a year?
*I actually requested it (sept.2023) start back up in Jan. 2024 (which would have been dec. 2023 pmt) but they didn't process it till march.
thanks for the help with this, seems like they could have written a 'Tool' for this with the fill in the blanks or even pulled for the actual website data but why would they want to help people, they took 10 months to reply to my last letter/question.
dav
FRA> 66y 2mo (8-2017)
started SS in July 2017 (rec. check in aug.) 62y 0 mo? 2months early of FRA?
last SS payment before suspension was in Oct 2021 for $1483.50 (suspended sept.) 66y 3 mo?
Renewed/restarted SS pmt started back 12-2023 (check in jan. (actually didnt get it till march*).
do I use the PIA for when it was suspended or when it started back up?
how can it be an 18% increase when the max is 8% a year?
*I actually requested it (sept.2023) start back up in Jan. 2024 (which would have been dec. 2023 pmt) but they didn't process it till march.
thanks for the help with this, seems like they could have written a 'Tool' for this with the fill in the blanks or even pulled for the actual website data but why would they want to help people, they took 10 months to reply to my last letter/question.
dav
Re: UPDATE -Social Security - Delayed Retirement Credits Question
Let me see if I've got this right.
- Your Full Retirement Age is 66y and 2mo so your birth month/year is probably June 1955 based on other information you provided.
- You started SS at the earliest possible date, the month in which the SSA considered you to be age 62 for the entire month -- July 2017 -- 49 months before your Full Retirement Age resulting in a 25.42% reduction in your benefit. This changes the calculation considerably.
Your benefit is reduced 5/9 of 1% for each month before FRA up to 36 months. If the number of months exceeds 36, the benefit is reduced 5/12 of 1% per month for the additional months. So in your case, the reduction is: (36 * 0.01 * 5/9) + (13 * 0.01 * 5/12) = 25.42%
- You suspended your benefit effective Oct 2021. I'm not sure exactly when you resumed. You mention requesting it be resumed Dec 2023 but you didn't get the check until March 2024. Did the check include retroactive payments back to Dec 2023?
- Assuming your benefit resumed Dec 2023, you earned 26 Delayed Retirement Credits, a 17.333% increase. (If your benefit did not resume until March 2024, you earned an additional 3 DRCs and your increase would be 19.333%) Due to claiming early, you are also subject to a 25.42% reduction so your benefit calculation would be:
Your 2025 benefit = (Your 2025 PIA) * 0.7458 * 1.1733 = 0.875 * (Your 2025 PIA)
Your old PIAs are not relevant, other than as a means to calculate your new PIA each year, or to verify your benefit for some year in the past. For example, if you want to calculate what your benefit should have been in 2024, your will need your 2024 PIA.
- Your Full Retirement Age is 66y and 2mo so your birth month/year is probably June 1955 based on other information you provided.
- You started SS at the earliest possible date, the month in which the SSA considered you to be age 62 for the entire month -- July 2017 -- 49 months before your Full Retirement Age resulting in a 25.42% reduction in your benefit. This changes the calculation considerably.
Your benefit is reduced 5/9 of 1% for each month before FRA up to 36 months. If the number of months exceeds 36, the benefit is reduced 5/12 of 1% per month for the additional months. So in your case, the reduction is: (36 * 0.01 * 5/9) + (13 * 0.01 * 5/12) = 25.42%
- You suspended your benefit effective Oct 2021. I'm not sure exactly when you resumed. You mention requesting it be resumed Dec 2023 but you didn't get the check until March 2024. Did the check include retroactive payments back to Dec 2023?
- Assuming your benefit resumed Dec 2023, you earned 26 Delayed Retirement Credits, a 17.333% increase. (If your benefit did not resume until March 2024, you earned an additional 3 DRCs and your increase would be 19.333%) Due to claiming early, you are also subject to a 25.42% reduction so your benefit calculation would be:
Your 2025 benefit = (Your 2025 PIA) * 0.7458 * 1.1733 = 0.875 * (Your 2025 PIA)
The benefit calculation is not as complicated as you imagined. When calculating your benefit for any given year, use just your current PIA. Your PIA back when you suspended is old data.dav wrote: Sun Feb 02, 2025 10:42 am do I use the PIA for when it was suspended or when it started back up?
Your old PIAs are not relevant, other than as a means to calculate your new PIA each year, or to verify your benefit for some year in the past. For example, if you want to calculate what your benefit should have been in 2024, your will need your 2024 PIA.
I think your confusion is a result of thinking that your old PIAs are part of the calculation. They are not. The increase you receive due to delaying your SS benefit is 2/3 of 1% for every DRC you have earned. If you delay/suspend for more than one year, you will earn more than 12 DRCs and your increase will be more than just 8%. For example, if you delayed/suspended for 24 months then you earned a total of 24 DRCs, that's a 16% increase: 24 * 0.02/3 = 16%. But in your case, you initially claimed early so you also have to factor in the reduction for claiming early.how can it be an 18% increase when the max is 8% a year?
Re: UPDATE -Social Security - Delayed Retirement Credits Question
I think this answers your questions>
FRA> 66y 2mo (8/17/2021)
For those born in 1955, normal retirement age is 66 years and 2 months. This is in August, 2021.
started SS in July 2017 (rec. check in Aug.) 62y 0 or 1 Mo?
last SS payment before suspension was in Oct 2021 for $1483.50 (suspended sept.)
renewed SS pmt started back 12-2023 (check in Jan. (actually didn't get it till march).
I actually requested it (in sept.2023) start back up in Jan. 2024 (which would have been dec. 2023 pmt) but they didn't process it till march. First SS check when resumed was 3/4/24 net 4739.90 don't see where they came up with this number
$1422.70 normal amt that year(24) net, (Gross 2068.90).
Averaged Indexed Monthly Earnings (AIME): $4,160
Primary Insurance Amount (PIA): $2,423.40 / month using the 'tools' calculator.
I don't see an option for getting the PIA for 2024
Normal Retirement Age
The primary insurance amount rounded down ($2,423 / month) is the benefit you will earn if you begin collecting your benefit at your normal retirement age (NRA). You may also see this referred to as the full retirement age (FRA).
>>
I'm thinking that you have had to figure the SS amt's and formula many times before or you are a natural with this, I got more information from you in this post than I have been able to find on the SS site (googles not my friend).
dav
FRA> 66y 2mo (8/17/2021)
For those born in 1955, normal retirement age is 66 years and 2 months. This is in August, 2021.
started SS in July 2017 (rec. check in Aug.) 62y 0 or 1 Mo?
last SS payment before suspension was in Oct 2021 for $1483.50 (suspended sept.)
renewed SS pmt started back 12-2023 (check in Jan. (actually didn't get it till march).
I actually requested it (in sept.2023) start back up in Jan. 2024 (which would have been dec. 2023 pmt) but they didn't process it till march. First SS check when resumed was 3/4/24 net 4739.90 don't see where they came up with this number
$1422.70 normal amt that year(24) net, (Gross 2068.90).
Averaged Indexed Monthly Earnings (AIME): $4,160
Primary Insurance Amount (PIA): $2,423.40 / month using the 'tools' calculator.
I don't see an option for getting the PIA for 2024
Normal Retirement Age
The primary insurance amount rounded down ($2,423 / month) is the benefit you will earn if you begin collecting your benefit at your normal retirement age (NRA). You may also see this referred to as the full retirement age (FRA).
>>
I'm thinking that you have had to figure the SS amt's and formula many times before or you are a natural with this, I got more information from you in this post than I have been able to find on the SS site (googles not my friend).
dav
Re: UPDATE -Social Security - Delayed Retirement Credits Question
When looking at the results in the SSA Tools calculator, click on "Expand for a detailed look at the Primary Insurance Amount" to see your PIA history. The line labeled 2024 shows your 2024 PIA then "increased by 2.5%" and your 2025 PIA. Adjustments are applied at the end of the year. The latest COLA is applied starting with your December benefit, paid to you the following January.dav wrote: Mon Feb 03, 2025 10:42 am Primary Insurance Amount (PIA): $2,423.40 / month using the 'tools' calculator. I don't see an option for getting the PIA for 2024.
$1422.70 normal amt that year(24) net, (Gross 2068.90).
We can approximate your 2024 PIA by removing the latest COLA (2.5%) from your 2025 PIA: 2423.40/1.025 = 2364.30. If the calculations in my previous post are correct, your benefit would have been 87.5% of that amount. 0.875*2364.30 = 2,068.76 which is close enough to the number you stated (2068.90) so the combination of the reduction for claiming early plus the increase due to DRCs seems to be correct at 87.5% of your PIA.
Since your gross benefit was 2068.90, this looks like a 3-month retroactive payment (Dec '23, Jan and Feb '24). How they got from 6,206.70 (3*2068.90) to 4739.90 requires knowing what they deducted for Medicare Part B, Part D, IRMAA, and federal tax withholding but you could play around with the numbers to try to figure it out. When they pay out retroactive benefits, the SSA usually sends a letter showing what was deducted.I actually requested ... start back up in Jan. 2024 (which would have been dec. 2023 pmt) but they didn't process it till march. First SS check when resumed was 3/4/24 net 4739.90 don't see where they came up with this number.
Re: the Medicare deductions, it would have been for 0, 1, 2, or 3 months since you would have paid out of pocket for Medicare for some of that time while your request to resume your benefit was pending. If you had requested to have federal tax withheld from your benefit back when you originally claimed at 62, that same withholding percentage would apply once you resume your benefit (unless you requested to change it), including for this retroactive payment so be sure to factor that in as well. Withholding is calculated on the amount of your benefit after deducting for Medicare and rounding.
For 2025, your benefit should be 87.5% of your 2025 PIA (2,423.40) = 2,120.40 after rounding. When calculating your net payment, additional rounding is done at each step as they deduct for Medicare Part B (+IRMAA), round down to a whole dollar, deduct for Part D (if you have your premium deducted from SS) (+Part D IRMAA), then withhold federal taxes (if you opted in). Your online SS account will show you your gross benefit, Medicare deductions and withholding for the most recent benefit payment.Primary Insurance Amount (PIA): $2,423.40 / month using the 'tools' calculator.
I was in a similar situation (claimed, suspended, resumed) except that my initial claim was after FRA. I also had a retroactive payment. I wanted to understand how it all worked and wanted to verify the amounts I received along the way. I read lots of posts here and then created a spreadsheet and refined the calculations and rounding until the numbers matched those from the SSA.I'm thinking that you have had to figure the SS amt's and formula many times before or you are a natural with this, I got more information from you in this post than I have been able to find on the SS site (googles not my friend).