Social Security Rule Lets Retirees Raise Benefits by 77% if They Reverse Claims Within 12 Months
Updated
Updated · The Motley Fool · Aug 26
Social Security Rule Lets Retirees Raise Benefits by 77% if They Reverse Claims Within 12 Months
3 articles · Updated · The Motley Fool · Aug 26
Summary
A little-known Social Security provision lets retirees withdraw a benefit claim once within 12 months of approval, effectively erasing an early-filing decision.
That matters because claim age sharply changes payouts: workers born in 1960 or later get 70% of their full benefit at 62 versus 124% at 70.
Retirees who use the do-over must repay all benefits received, including any spousal benefits tied to their record and Medicare premiums withheld from checks.
After a withdrawal, delayed retirement credits can lift benefits by two-thirds of 1% a month after full retirement age—8% a year—up to age 70.
The option addresses a common choice: more than 90% of new beneficiaries claimed before 70 last year, and nearly 25% started at 62.