Feel like you need to take a mulligan on your Social Security strategy?
More than one-third of retirees decide to claim their benefits as soon as they can, at age 62.
Retirees may have good reason to be worried. The program’s trust fund is projected to run out of money in 2030, meaning there won’t be enough cash to pay recipients 100 percent of their benefits. Republicans, led by house speaker Paul Ryan (R-Wisconsin), are proposing reforms such as raising the retirement age or capping payouts for high-income workers — something President Donald Trump has yet to officially weigh in on.
Still, many financial advisors, including Birchett, say claiming right away is a bad idea since you’ll only get 75 percent of your monthly benefit than if you had waited.
1- Hit the reset button
If it’s been less than a year since you started receiving checks, you can withdraw your application completely.
This is especially important if you have a sudden change in your financial situation.
2- Halt your payments
If you’re beyond that one-year window, suspending your payouts is another option. To qualify, you need to be between your full retirement age and 70.
By stopping your payments, you’ll earn an additional 8 percent for each year you don’t collect, which can add up over time. There are no time constraints, so you can choose to halt payments for as long as or as little as you want.