topic Re: What month of entitlement to choose to maximize retirement benefits? in Social Security

What month of entitlement to choose to maximize retirement benefits?

BrianL306623 — Thu, 08 May 2025 12:03:47 GMT

Hi,

I apologize if this question has been asked & answered before, yet my search of posts was not successful. I also searched the SSA website yet still could not find a direct answer, e.g., GN 00204.039 Explaining the Month of Election (MOEL) Options OR GN 00204.040 Month of Election (MOEL) and Month of Entitlement (MOET).

If I turn 70 in mid-August and want to make sure that I receive my maximum benefits for turning 70 do I choose August as my month of entitlement knowing that my first check would not arrive until September? I have read that "You would want to begin benefits in the month you turn 70. You don't need to be 70 for the entire month in order to get your full age 70 rate."; however, I have not found anything 'legal' on the SSA website to support this statement and trying to find something in the federal register is a nightmare!

Thank you for whatever you may be able to provide me to support a response.

Re: What month of entitlement to choose to maximize retirement benefits?

GailL1 — Thu, 08 May 2025 18:24:36 GMT

Social Security benefits are ALWAYS paid one month in arrears.

Benefits are always figured based on a MONTH time period -whether the benefit has an increase (for adding delayed retirement credits ) or decrease -(for deducting for taking benefits early) - NEVER by the DAY.

SSA.gov - Delayed Retirement Credits

Just a MY COMMENT: but maybe we should do it by day to save money cause there are many more people filing for early retirement than those who make it to filing at 70 - which is the last time period for which one would get any benefit increase other than COLAs.

@BrianL306623 wrote

however, I have not found anything 'legal' on the SSA website to support this statement and trying to find something in the federal register is a nightmare!

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To Find the applicable Code in the Federal Registry - Start here

SSA.gov -Social Security Rulings and Acquiescence Rulings - Table of Contents

Choose whichever category you want from the index - in this case, the selection would be the OLD AGE INSURANCE BENEFIT

Then I did a search (at the top of page) of Delayed Retirement Credits in this category

Then the Code of the Federal Regulations comes up for the DRC

SSA.gov - Code Of Federal Regulations § 404.312 Table of Contents of Part § 404.315 § 404.313. What are delayed retirement credits and how do they increase my old-age benefit amount?

Notice all the references to MONTH - not days.

This Federal Registry

§ 404.313. on Delayed Retirement Credits says . . .

You may earn a credit for each month during the period beginning with the month you attain full retirement age (as defined in § 404.409) and ending with the month you attain age 70 (72 before 1984).

So when you fill out your Retirement application, you will select the month that you turn 70 (August) just like the rule says and then your 1st benefit will be paid in September based on this calendar of benefits (the legend is at the bottom of the calendar) and then you will get ALL of the DRC.

Hope this is sufficient for your needs. AND Congratulations

Re: What month of entitlement to choose to maximize retirement benefits?

BrianL306623 — Thu, 08 May 2025 18:35:40 GMT

As always, you provide great information and help through the quagmire! Thanks. I will look at the links you provided, yet it appears the following is the one I was looking for. I take it that prior to 1984 one had to wait until age 72 to get the maximum DRCs.

404.313. on Delayed Retirement Credits says . . .

You may earn a credit for each month during the period beginning with the month you attain full retirement age (as defined in § 404.409) and ending with the month you attain age 70 (72 before 1984).

Re: What month of entitlement to choose to maximize retirement benefits?

GailL1 — Thu, 08 May 2025 22:08:17 GMT

@BrianL306623 wrote

I take it that prior to 1984 one had to wait until age 72 to get the maximum DRCs.

———————————————

Yep and I believe the FRA at that time was 65.

You may want to also read this POMS -( Program Operations Manual Systems) on Delayed Retirement Credits

https://secure.ssa.gov/poms.nsf/lnx/0300615690#:~:text=Before%201984%2C%20DRCs%20were%20earned,DRCs%20ended%20at%20age%2070

Re: What month of entitlement to choose to maximize retirement benefits?

BrianL306623 — Fri, 09 May 2025 11:43:14 GMT

Interesting that the FRA remained the same, yet the DRC age limit decreased! I wonder when the FRA will increase.

Thanks again. Very informative.

Re: What month of entitlement to choose to maximize retirement benefits?

GailL1 — Fri, 09 May 2025 14:36:11 GMT

@BrianL306623 wrote:
Interesting that the FRA remained the same, yet the DRC age limit decreased! I wonder when the FRA will increase.

Thanks again. Very informative.

All part of the savings that were built into the 1983 Social Security Amendment - however, there was a compromise in that the DRC at that time also increased from 3% to 8% .

So the FRA began to slowly go up from 65 to 67,
the EARLY retirement age remained the same (62) allowing for more deduction in the early retirement benefit.
a shorter period to earn DRC as the FRA increased - but at a higher %- the higher DRC was also phased in over several years.

I think this just shows us that major and minor tweak fixing went a long way in preserving the SS system back in 1983. Kudos to the legislators and the executive branch for working together on this major piece of legislation. There was still lots of griping about “changing” the system.

I am much less confident today.