Deciding when to start Social Security retirement benefits -whether as early at age 62 or delay up until age 70 – is an important financial decision. The answer depends on your personal circumstances and some guess work about longevity. This article provides information about a claiming strategy that is not well known. It involves claiming benefits before Full Retirement Age (FRA), suspending benefits at FRA, and restarting age 70.
Claim Benefits Early (Before FRA)
You can begin receiving a reduced benefit at age 62.
Optional “Do-Over” Within 12 months
You change your mind within 12 months, withdraw your application, and change your claiming decision to avoid the benefit reduction. However, you must pay back all benefits received unless you wait until FRA to suspend benefits.
Suspend Benefits at Full Retirement Age (FRA)
Once you reach FRA, you are allowed to suspend benefits and do not need to pay anything back. During the benefit suspension, delayed retirement credits (up to 8% per year) can be accrued until age 70.
Restart Benefits Later (up to age 70)
You may restart benefits at any time; maximum delayed retirement credits are earned by waiting until age 70.
Some Factors to Consider
Longevity: Delaying retirement works best for those with a long-life span. For married couples, longevity and deceased spousal benefits need to be considered.
Family benefits: Other family members receiving benefits on your record will not be able to receive those benefits while your benefits are suspended. An exception applies to divorced spouses, who may continue receiving benefits even if you suspend yours.
Find out More
The Social Security claiming decision is an important part of retirement planning. A key factor— longevity—is uncertain, so there is no one-size-fits-all approach. The best you can do is gather information, seek reliable guidance, and make an informed decision. These articles provide more information:
Social Security Administration, “Suspending Your Retirement Benefit Payments”
Fidelity, Social Security | Readjust your claiming strategy | Fidelity
Charles Schwab, “Guide on Taking Social Security: 62 vs. 67 vs. 70.”
Kitces Nerd’s Eye View blog by Derek Tharp, Why Delaying Social Security Benefits Isn’t Always The Best
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