By Catherine Siskos,
From Kiplinger’s Personal Finance
Q: It’s often said that Social Security benefits increase annually by 8 percent every year that someone waits. Many financial experts use this figure too, but I found the 8 percent assumption to be false. Are there any reasons why someone who waits wouldn’t see an 8 percent bump in benefits per year?
A: It depends on the starting point. Your primary insurance amount (your benefit at full retirement age) increases 2/3 of 1 percent every month you delay between your full retirement age and age 70, or 8 percent for a full year. These increases are called delayed retirement credits….