When it comes to Social Security, many people think they’re stuck with the benefits they’ve signed up for. your benefits are based on your lifetime earnings, but did you know there are still ways to increase your Social Security Payments even after you’ve started receiving them? Let’s check about three strategies that can help you make the most of your Social Security benefits.
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Withdraw Your Social Security Application
If you started Social Security too early and now regret it, you might be able to fix it. You have up to 12 months after applying to cancel your application. This gives you another chance to get more benefits. But remember, you can only do this once, and it can be bit complicated.
How to Do It?
To start, you have to fill a form which will ask by Social Security Administration (SSA) to withdraw your application. You’ll also have to repay any benefits you and your family received. Once you’ve done this, your benefits will pause until you reapply, but when you do, you’ll be in a better position.
Why it is a worth?
Delaying your benefits can lead to a bigger monthly check. Depending on your age when you reapply, you could see your benefits increase by as much as 8% per year. So if you’re patient, you could enjoy a much larger monthly payment.
Suspend Your Benefits at Full Retirement Age
If you’re already receiving Social Security and have reached your Full Retirement Age (FRA) – which is usually between 66 and 67 – but don’t want to go through the hassle of withdrawing your application, you can suspend your benefits instead. This is a great option if you’ve been receiving payments for more than a year and can’t repay what you’ve already collected.
What will happen when you suspend?
Once you get your FRA, you can ask the SSA to pause your payments. This suspension can last until you decide to start them again or until you turn 70, when you’ll be eligible for the maximum benefit. During this time, you’ll earn delayed retirement credits of about 8% per year, which can significantly increase your future payments.
One example for delaying payment
Imagine you’re getting $2,000 a month at age 67. If you suspend benefits until you turn 70, your check could jump to $2,480 a month. That’s pretty increase in your payment
Keep Working While You’re Under FRA
If you’re still working and collecting Social Security before reaching your FRA, you might wonder if this affects your benefits. The good news is, working while receiving benefits can actually help increase your payments, though there are some rules to follow.
Understand the earning test
For 2024, if you’re under your FRA, the SSA will withhold $1 from your benefits for every $2 you earn over $22,320. If you’ll reach your FRA in 2024, the withholding changes to $1 for every $3 over $59,520, but this applies only to earnings before your birthday.
What if I lose my money ?
The money that gets withheld isn’t gone forever. Once you reach your FRA, the SSA will recalculate your benefits to reflect the amount that was withheld. This means your future payments could be higher to make up for the earlier deductions.
Conclusion
By using these strategies, you can potentially increase your Social Security benefits even after you start receiving them. Whether you choose to withdraw your application, suspend your benefits, or keep working, each approach can help boost your monthly income. So, take control of your benefits and make the most of what Social Security has to offer.
FAQs
Can I increase my Social Security benefits after starting them?
Yes, you can by withdrawing your application, suspending benefits, or working if you’re under Full Retirement age.
How do I withdraw my Social Security application?
Submit a form to the SSA within 12 months of applying and repay any benefits received.
What does suspending my benefits at Full Retirement Age do?
It stops your payments temporarily and increases your future benefits by about 8% per year.
What if I work while getting Social Security before Full Retirement Age?
The SSA will withhold part of your benefits if you earn over a certain amount, but you’ll get this money back in higher future payments.
Is withheld money from working lost forever?
No, it will be added to your benefits once you reach Full Retirement Age.
How can I decide between suspending benefits or withdrawing my application?
Assess your financial needs and consult with a financial advisor or the SSA for guidance.
