The Very Wonderful Magical Math of a Delayed Retirement
Retirement credit? Good heavens! I call it a bonus. Do you know how much of a bonus that you get if you delay receiving Social Security past your normal retirement date?
Boring Stuff AKA Fine Print about the Credit for Delayed Retirement
Born in 1943 or after? Eligible for Social Security benefits? For every month that you delay receiving Social Security benefits past your normal retirement age you will increase your retirement paycheck by .00667 =2/3 of 1% per month!
Why am I so excited? That itsy bitsy .00667 per month benefit doesn’t sound like much. But, the .00667 increase per month equals 8% per year!! And, you can delay taking Social Security retirement benefits up to the maximum age of 70.
Note that because the normal retirement age will be increasing to age 67, eventually, retirees will only be able to receive a delayed retirement credit for three years instead of four or five.
Translation of Your Social Security Delayed Retirement Math
Chart data is for example only. The Full Monthly Retirement benefit shown may or may not show your actual benefit! Check with SSA.gov for more information.
|Actual Retire-ment Age||Social Security Normal Retire-ment Age||Full Monthly Retire-ment Benefit at age 66/67||Actual Benefit Amount at age 70||Dollar Amount per Mo. Difference||% Amount per Mo. Differ-ence||Annual Dollar Differ-ence for life|
 At age 70 with a retirement age of 66, your credit is an increase of your monthly benefit by 32%. (That is: .00667 x 48 months for ages 66-70. You increase every dollar you earn by waiting until retirement age 70, you get $1.32 cents. So, in dollar terms, what an annual salary of $14,400 is increased to $19,008 per year, for life.
At age 70 with a retirement age of 67, your credit is an increase of your monthly benefit by 24%.(That is: .00667 x 36 months for ages 67-70. You increase every dollar you earn by waiting until retirement age 70, you get $1.24 cents. So, in dollar terms, what an annual salary of $14,400 is increased to $17,856 per year, for life.
Jane Nowak is a CERTIFIED FINANCIAL PLANNER™ specializes in AT&T Retirement Plans, Women’s Retirement and Financial Planning for Women. Located in the Smyrna, Marietta, Vinings area of Atlanta, GA, Jane’s goal is to educate and empower her clients to take control of their daily finances so they can fully fund their retirement dreams and needs. Jane has recently had articles quoted and published on-line at the NASDAQ, Yahoo Finance, Womenetics.com, Smart Money Chicks, Fox Business News, CreditCards.com, U.S. News and World Report and Financial Planning Association (FPA) websites.
Securities offered through Triad Advisors, Inc. Member, FINRA/SIPC