Financial advisor Michael Littledike leads Capita Financial Network as president, providing coordinated investment and retirement consulting solutions. Focused on Baby Boom clients navigating a post-career landscape, Michael Littledike has extensive knowledge of strategic approaches to Social Security benefits.
With 62 the age at which most people start to be eligible for early Social Security payments, the monthly payment amount is significantly smaller than it is for those who wait until they reach 66, the full retirement age. For example, those who would be eligible for $1,000 in monthly benefits if they started at 66 would receive only $750 if they start at 62, with this amount generally locked in for one’s remaining years.
For those who begin collecting benefits early - and ultimately want to reverse that decision - there are a number of ways to gain a higher benefit. The most straightforward involves paying back the money, with no interest involved, within 12 months of signing up to receive payments. At this point, the Social Security application can be withdrawn.
Alternatively, payments can be suspended, which initiates delayed retirement credits that boost monthly payments by 8 percent for each year the suspension lasts. While payments can be resumed at any time, they will automatically kick in at age 70, if no other option has been selected.
With 62 the age at which most people start to be eligible for early Social Security payments, the monthly payment amount is significantly smaller than it is for those who wait until they reach 66, the full retirement age. For example, those who would be eligible for $1,000 in monthly benefits if they started at 66 would receive only $750 if they start at 62, with this amount generally locked in for one’s remaining years.
For those who begin collecting benefits early - and ultimately want to reverse that decision - there are a number of ways to gain a higher benefit. The most straightforward involves paying back the money, with no interest involved, within 12 months of signing up to receive payments. At this point, the Social Security application can be withdrawn.
Alternatively, payments can be suspended, which initiates delayed retirement credits that boost monthly payments by 8 percent for each year the suspension lasts. While payments can be resumed at any time, they will automatically kick in at age 70, if no other option has been selected.