Full question: Is it misleading to say that you receive an 8% increase in benefits for each year you delay? 8% appears to be an average, but the actual annual increase is much less than 8%, according to my actual account.

Hello,

The 8 percent increase per year only applies to the years from full retirement age, FRA, to age 70.

It is a monthly increase of 2/3 of 1 percent for each month, up until 70, which results in 8 percent per year. The percentage reduction from FRA down to age 62 is 5/9 of 1 percent per month for the first 36 months (6.67 percent per year) and 5/12 of 1 percent for each additional month (5 percent per year).

So you are correct that the 8 percent increase isn’t accurate in all years.

Take care,
Martha

 

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