Q & A
Can I get increased benefits for filing at age 71?
Complete Question: My parents told me that they waited until they were 70 years old to file for Social Security so that they could increase their benefit amount. From what I hear, 70 is the maximum age to do this. I am 52 years old, so my full retirement age is 67. Does this mean I can do what they did and increase my benefits until I’m 71 years old?
Answer: It sounds like your parents waited to file late in order to earn delayed retirement credits (DRCs). If a person waits to file for Social Security benefits after their full retirement age (FRA), they will earn DRCs at a rate of 8% per year. With the current FRA of 66, a person can earn up to 32% more (8% x 4 years). (NOTE: When earning DRCs the 8% per year is NOT compounded).
The bad news for you and for other people who are facing an older full retirement age is that the maximum age to earn DRCs is still 70. Therefore, unlike your parents, you will only be able to increase your benefit amount by 24% (8% x 3 years). Of course there is always the chance that legislation can change this rule, but this is the current law on the books.