Podcasts Business Retirement Starts Today 3 Social Security Do-Over Options, Ep # 213

3 Social Security Do-Over Options, Ep # 213

Published: Oct. 11, 2021, 8 a.m.

Do you wish that you could have a mulligan when it comes to taking your Social Security benefit? Once you file for Social Security, it seems like your decision is set in stone. But what if I told you that you have options to reverse your decision?\xa0

In this episode of Retirement Starts Today, we\u2019ll explore an\xa0Investment News article\xa0written by one of my favorite Investment News contributors, Mary Beth Franklin. This article provides options for those who have remorse about the timing of their Social Security claim.

In the listener questions segment, we\u2019ll discuss Jerry\u2019s question about his health insurance premiums under the Affordable Care Act and how they are affected by the 8.5% rule.

This episode is jam-packed with helpful retirement information, so press play now to continue your retirement education.

Outline of This Episode
  • [3:02] 3 Social Security do-over options
  • [8:25] Check out the Retirement Repair Shop podcast
  • [9:24] Jerry\u2019s ACA insurance premium questions
  • [13:50] Clarification on the ACA 8.5% rule\xa0
There are 3 ways that you could reverse your Social Security timing

Have you found yourself regretting the timing of your Social Security benefits claim? Maybe you wish that you had waited longer to receive a larger benefit or maybe your retirement timeline has changed based on the pandemic or other factors. If so, I have good news for you. There are 3 ways that you could reverse your decision.\xa0

There are many people that wish they could go back and change the timing of their Social Security claim, so if you are one of them make sure to listen to this episode to learn which choice might best fit your needs.\xa0

Withdraw your application

You may not realize this, but you can withdraw your Social Security benefits application. Use form 521\xa0to do so, but keep in mind that there\u2019s a catch.\xa0

You\u2019ll have to repay any earnings you or your dependents have received. Withdrawing your application can only be done once, but doing so will allow you to apply again later when your monthly check would be higher.\xa0

You\u2019ll also want to consider whether you are already enrolled in Medicare. If you withdraw your application, your Medicare premiums will no longer be automatically deducted from your Social Security benefit, so you\u2019ll have to find another way to pay.\xa0

Suspend your benefits

If repaying your Social Security benefits isn\u2019t feasible, then you might want to consider suspending your benefits. This way you don\u2019t have to repay anything, however, keep in mind that not only will your benefits stop, but also this action will stop any benefits to a dependent family member. Your benefits would then start again at age 70. Listen in to discover why this may be a good strategy for married couples.\xa0

Request a lump sum payout

Requesting a lump sum payout works only for individuals who have reached full retirement age. They can request a lump-sum payout of up to 6 months of retroactive benefits. This option would best be used by someone who has an urgent need for cash or for people who waited until after their full retirement age to claim either spousal or survivor benefits. After receiving a lump-sum payment, that person could then voluntarily suspend benefits and earn delayed retirement credits up to age 70 which would boost future monthly benefits.\xa0

Claiming Social Security seems like such a permanent decision so if life comes along and changes your plans it\u2019s good to know that you have these alternatives to consider.\xa0

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