Delayed retirement credits are financial incentives by the Social Security Administration (SSA). These incentives encourage workers to wait past their full retirement age before applying for retirement benefits.
Every month you delay claiming your Social Security benefits after full retirement age, you accrue a percentage of your future benefits. This continues until you reach age 70. At the end of the waiting period, your Social Security check will be proportionately higher than it would’ve been without the retirement credits.
Can I voluntarily suspend my retirement benefits to earn delayed retirement credits?
Yes, you can request a suspension of benefits from the Social Security Administration if you have reached full retirement age but are not yet 70.
Once you suspend your retirement benefits, anyone receiving benefits in your record will also be suspended. Likewise, you will not receive benefits on another person’s records.
Your request to suspend benefits will take effect one month after your request is made and ends one month after your request to resume, or one month before you turn 70—whichever one occurs first.
SSA rules for suspension of retirement benefits
- If you apply for retirement benefits but the SSA has yet to approve your entitlement, you may voluntarily suspend benefits for any month you don’t receive a check.
- If you apply for retirement benefits and the SSA has approved your entitlement, you may voluntarily suspend retirement benefit payments up to age 70. Suspension of retirement benefits will begin one month after you make the request.
- If you have others who receive benefits on your record, suspending your retirement benefit will stop them from receiving benefits throughout the period that your benefits are suspended. However, a divorced spouse will continue receiving benefits.
- You can request for suspension of benefits orally or in writing. You do not need to go through the formal process of signing your request or filling out a form.
- If you suspend your retirement benefits, you will automatically start receiving your retirement benefits the month you clock 70.
- Social Security benefits are paid the month after they are due. So if you request to suspend benefits in June, you will still receive your June benefit payment in July.
- If you change your mind after requesting to suspend benefits and would like to receive retirement benefits before age 70, simply inform the SSA when you want your payment to resume.
- If you voluntarily suspend your retirement benefit, any benefits you receive on someone else’s record will also be suspended. Your Medicare Part B premiums cannot be deducted from your suspended benefits.
- Voluntary suspension of retirement benefits starts one month after your request is sent in. You can send in advance requests, but the suspension does not begin a month earlier than the month after your request, your full retirement age, or your month of entitlement to benefits.
- If you change your mind after requesting voluntary suspension, the SSA will only permit benefit reinstatement the month after your request.
