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Deferred retirement credits and how they can increase Social Security benefits by $100

RETIREDERS know that waiting to collect Social Security can increase their payments, but few may know that waiting even longer pays extra dividends.

These additional benefits, called Delayed Retirement Credits (DRC), can be earned if a retiree waits past full retirement age (FRA) to start accumulating.

Pensioners can claim social security benefits from the age of 62

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Pensioners can claim social security benefits from the age of 62Photo credit: Getty

Social Security Pension benefits are increased by a certain percentage for each month that you delay starting your benefits beyond FRA.

The increase in performance ends when you reach the age of 70.

What is FRA?

Your FRA, sometimes referred to as the normal retirement age, is the age to which you are fully entitled social insurance Retirement provision.

The year and month you reach your FRA depends on your year of birth.

FRA works on a sliding scale to adapt to the fact that people are living longer and generally healthier lives.

The current FRA increases by a few months for each year of birth until age 67 for people born in 1960 and later.

How does the retirement credit work?

Democratic Republic of Congo can be earned between a person’s FRA and age 70 if not receiving Social Security benefits.

DRCs are credits that the Internal Revenue Service (IRS) uses to increase a retiree’s benefit amount.

You will receive one credit for each month during the period beginning the month you reach FRA and ending the month you reach 70 years of age.

DRCs are worth 8% per year, or two-thirds of 1% per month.

You must be fully eligible but not receiving your benefits either because you have not claimed benefits or because you have chosen to voluntarily suspend your benefits in order to earn DRCs.

How can you expose your achievements to earn DRCs?

If you have reached FRA but are under 70, you can apply to the Social Security Administration (SSA) to suspend your pension payments.

Application for a voluntary suspension of benefits, Contact the SSA either by phone, mail or by visiting your local Social Security office, many of which are expected to reopen from March 30.

After you have submitted the application, your suspension of benefits can begin as early as the following month.

The Sun explains why you should wait to claim Social Security.

Plus financial guru Suze Orman’s advice on finance and retirement.

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https://www.the-sun.com/money/4822909/delayed-retirement-credits-boost-social-security-benefits/ Deferred retirement credits and how they can increase Social Security benefits by $100

Caroline Bleakley

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