Social Security Claiming Strategies
How to use two social security claiming strategies to boost your benefit
Key Takeaways
- At age 67+, you can apply for Social Security retroactively (up to 6 months back) to receive a lump sum payment ($12,000-$15,000+), then voluntarily suspend benefits to continue earning delayed retirement credits until age 70
- Voluntary suspension of benefits allows you to offset the penalty from early filing by earning delayed retirement credits worth approximately 8% per year until age 70, potentially recovering lost income over your lifetime
- Before using voluntary suspension strategy, verify that no spouse or dependent is receiving benefits on your record, as they would be cut off when you suspend your benefits
- If you're paying Medicare premiums, they will stop during voluntary suspension—you can pay them quarterly instead to maintain coverage while pursuing this strategy
- This strategy works best for those needing short-term cash flow (like job loss or furlough) who can afford a slightly reduced lifetime benefit in exchange for immediate liquidity
Social Security Claiming Strategies: David Freitag, Financial Planning Consultant and Social Security Expert from Mass Mutual discusses how to use two social security claiming strategies to boost your social security benefits.
It’s a little known strategy, but it might prove beneficial to older Americans who have reached full retirement age, who have not yet filed for Social Security, and who might need some extra cash right now - for one reason or another.
That’s right, you may be entitled to a retroactive payment, a lump sum check representing up to six months of your Social Security benefit, according to Freitag.
According to Freitag, this strategy works for someone who missed the window to apply for Social Security at FRA and now wants to start their benefit. Follow this link to learn more about social security on finStream TV: https://www.finstream.tv/videos/social-security/