Q & A
Ask Rusty – Delayed Claiming; Am I Now Getting the Right Amount?
Dear Rusty: I am having problems getting answers from the national Social Security office or the local agent who I first spoke with to apply for my benefits. I am 70 in January 2021 and applied for benefits at the end of August 2020. I asked to have benefits start in October 2020 with my first payment received in November. I was told that the benefit for applying at age 69 & 9 months would not be received until January of 2021. Until then I would receive the 69 years and 0 months payment, which I received in November and December of 2020. In January 2021 however, I received the same 2020 payment plus the COLA increase. I’ve asked what’s up at the local office and have been waiting for a return phone call. My first question: is the amount I received in November and December last year correct, i.e., it is only the age 69 amount, not the 69 and 9 months benefit for the age I was at the time? And second, if that’s true, when in 2021 should I get my full amount? Signed: Confused
Dear Confused: I’ll try to clear this up for you. Delayed Retirement Credits (DRCs) of 0.667% are earned monthly for each full month you delay claiming after your full retirement age (which for you is 66). But although you earn delayed retirement credits monthly, Social Security only applies them in January of each year. You don’t lose them; they just don’t do the benefit adjustment until January of each year. That’s why you got only the age 69 benefit when you started your benefits in October and why your payment in November and December didn’t include those DRCs.
The SS payment you received in January was actually for your December benefits, and included the 2021 COLA increase (which is computed using your December benefit). And just as an FYI, they do apply DRCs immediately for anyone who claims at age 70, regardless of the month they claim. What happened to you was because you claimed before you were 70.
The additional 6% DRCs you earned between January and September last year should be applied in January of this year and should be included in your next benefit check, which you will receive in February (SS pays benefits in the monthly following they are earned). When they do that computation, they’ll automatically adjust your COLA using your new benefit amount. So, what you were told by the Social Security agent is essentially correct – your benefit payment won’t reflect those additional DRCs for 2020 until your January 2021 payment, which you will receive in February.
This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at [email protected].
The SSA owes me my delayed retirement credits for 2020. I have received my Feb and March benefit amount and still waiting to see the increase related to my delayed retirement credits. My question was sent to the payment center in late January. I was told in Feb to give the SSA payment center 60 working days before contacting SSA again. Does this make sense? Maybe it is taking the SSA longer this year due to the Covid-19 pandemic? Any thoughts?
thank you
Marcie,
When you claim your Social Security benefits after your full retirement age but before age 70, Social Security doesn’t, as a per their normal process, apply your delayed retirement credits (DRCs) to your benefit until January of the following year, which for you would be this past January (2021). You should normally see those credits in your February payment. If you first claimed your benefit in 2020 and your earned DRCs have not yet been applied, you should again call Social Security to find out why. We’ve not heard of any delays in applying DRCs in January as scheduled, but since all SS offices have been affected by the pandemic, persistent calling may be needed. But do not worry about losing money – Social Security will pay you the increase you are due retroactive to when you became entitled.
Before you call, I suggest you look at your personal SS profile online. If you have not yet created your personal online SS account, it’s easy to do at http://www.ssa.gov/myaccount. Once you’ve done that, you will be able to see details of your Social Security payment and a history of payments made (as well as much other information). Sometimes, payment increases can be masked by changes to your Medicare premium amount, yielding a net SS payment less than you expected, so I suggest you review your payment history first. If you find your DRCs have definitely not been applied, then calling Social Security again is certainly in order. You can find the number for your local Social Security office at http://www.ssa.gov/locator, or you can call the national number at 1.800.772.1213.