(Courtesy of Medicare Done) It happens more often than you think — someone claims social security early, then realizes it was a mistake. Maybe they returned to work, or maybe they didn’t understand how claiming early would reduce their monthly benefit. The good news? There may be a second chance.

Option 1: The One-Time Do-Over

If it has been less than 12 months since you started receiving benefits, you can withdraw your application and repay everything you have received. This resets your benefit as if you never claimed. Later, when you reapply, your benefit will be higher due to the delay.

But this is a one-time option, and you must repay all benefits received, including any spousal benefits that may have been paid.

Option 2: Voluntary Suspension

If you have passed the 12-month mark and reached full retirement age, you can request to suspend your benefits. You won’t receive monthly payments during the suspension, but your benefit will grow by 8% per year until age 70. But there’s a catch: If you suspend your benefit, others collecting on your record (like a spouse) will also stop receiving payments during that time. However, a divorced spouse claiming on your record can continue to receive benefits even while your own payments are suspended.

John’s Story: John was eligible for a $1,000 monthly Social Security benefit at his full retirement age of 67. But like many, he decided to start early at age 62. That decision came with a cost; his benefit was reduced by 30%, leaving him with just $700/month.

A few years later, John realized that a lower benefit might not be enough to maintain his financial stability. At age 67, he chose to voluntarily suspend his payments. Over the next three years, his benefit grew by 8% per year. By the time he turned 70, John’s monthly benefit had increased to $868, a 24% boost from what he was receiving at 67, and a significant improvement over the $700 he started with at 62.

Making the right Social Security claiming decision can be the difference between a financially strained retirement and a confident, comfortable one. We can help you with these decisions. Schedule your free Social Security consultation with Yeshaya Jeremias RSSA at (248) 919-8193 or email
yeshaya@medicaredone.com.

This is a bimonthly series featured in the Health and Business editions of The Jewish Link, focusing on Social Security planning.