Correcting a possible Social Security mistake
June 27th, 2012|
June 27, 2012
Financial experts say you should draw Social Security benefits as late as possible, but about 75 percent of Americans start drawing their benefits at the earliest possible age of 62, according to CBS News. This early withdrawal of Social Security results in the lowest monthly benefit.
For those who started Social Security early to make ends meet, the pay-back option is limited to within 12 months of starting benefits.
Here are some options to “undo” receiving your benefits early.
(1) Pay it all back if you are still within the 12 months of starting. Start again later when your benefits will be higher.
(2) Go back to work if you are under your full retirement age (FRA) of 66. If your salary exceeds $14,640 per year, your benefits will be reduced, but when you stop working, your benefits will be increased.
(3) Once you reach your FRA, voluntarily suspend your Social Security income and receive credits for delaying your benefits when you restart them in the future (no later than 70).
(4) Maximize benefits for your spouse who has not yet begun taking benefits by having him/her wait until his/her FRA or as late as 70.
(5) If you have other sources of retirement income, invest your Social Security income until you need the money.
If you or someone you know needs help with claims for Social Security Disability, contact a Social Security disability attorney at Fleschner, Stark, Tanoos & Newlin.