How the SSA Applies Delayed Retirement Credits (DRCs)

Understanding Delayed Retirement Credits (DRCs)

Delayed Retirement Credits (DRCs) allow Social Security beneficiaries to increase their monthly benefit if they delay filing beyond their Full Retirement Age (FRA). However, many people are unaware that if they claim benefits before age 70, some of these credits may not be immediately reflected in their first payments.

RSSA Roadmap currently applies all DRCs based on the filing month and year. As a result, there may be a one time discrepancy between Roadmap and SSA reporting for a few months if filing occurs between February (11 Months) and December (1 Month).


How Delayed Credits Work

  • Every month that a person delays collecting Social Security past FRA, they earn ⅔ of 1% in extra benefits, which totals 8% per full year of delay.
  • If a person waits until age 70, the full 32% increase in benefits is applied at once.
  • If someone claims before reaching 70, the delayed credits from the current calendar year may not be included in their initial payments and will only be added in January of the following year.

Why Do Delayed Credits Get Delayed?

  • Social Security only applies delayed credits earned in prior calendar years to the first check.
  • Credits earned in the same year that benefits are claimed will not be added until the next January.
  • The earlier in the year a person claims, the longer the delay before they see the full benefit.

Example Scenario

  • John’s FRA: 66.4 years old
  • John’s FRA Benefit (without COLA or DRCs): $3,215
  • John delays filing until January 2024 (at age 67.5), earning approximately 8.66% in delayed credits.
  • John’s January 2024 benefit payment: $3,901

John expects his benefit to reflect both all his delayed credits and cost-of-living adjustments (COLAs) from 2023 (8.7%) and 2024 (3.2%). However, because some of his delayed credits were earned in 2023, they may not be fully applied until January 2025. This means he will receive a slightly lower benefit until the remaining credits are processed.

How to Minimize the Delay in Receiving Full Benefits

  • If possible, file later in the year to reduce the waiting time for full credit application.
  • Check with Social Security to verify calculations and request a detailed benefit breakdown.
  • Be aware that COLAs are applied every January, which can also impact final benefit calculations.

Final Thoughts

Understanding how delayed credits are applied can help retirees make informed decisions about when to claim benefits. While waiting until age 70 ensures the full benefit increase applies immediately, those claiming earlier should be prepared for a possible delay in receiving all their credits.


For further information on Delayed Retirement Credits (DRCs) and their application, you can refer to the following resources:

  1. Kiplinger https://www.kiplinger.com/article/retirement/t051-c000-s004-when-delayed-social-security-credits-get-delayed.html
  2. SSA's Program Operations Manual System (POMS):

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