Understanding how the Social Security Do-Over Works In Burbank
How many times have you made a decision, only to repent it later on? You may wish if only you could take back the words you said or retract the decision made.
It is true that life does not always offer second chances. There are some situations where life does offer a second chance, like while filing for your social security benefits.
This second chance you have with social security claims is called a Social Security do-over.
It lets you withdraw your existing application, only to re-apply later on when you may need the money more. It is especially useful if you experience an unexpected change in your financial situation after filing for your social security benefits.
Furthermore, as always, there are some applicable conditions and rules you should know first before opting for your do-over. Read on to learn them.
Don’t worry; your social security benefits lawyer will also fill you up and help you with your decisions.
1. About Opting for a Social Security Mulligan
Do not fret if you change your mind after filing for social security. You can always opt for a social security ‘mulligan,’ which lets you change your mind about receiving benefits.
However, you have only 12 months’ time to withdraw your application from the date of filing. It means you are not eligible for a do-over if you have been receiving payments for more than a year.
Besides, before opting for a do-over, remember that you will have to repay the benefits received but without any interest. So you have to have the money ready to make repayment before opting for one.
Usually, people who claim benefits early at about 62 opt for a do-over. It is because their benefits are permanently reduced by 25%. They realize after a few months that they don’t need to receive reduced benefits now. They are financially sound and prefer opting to claim their benefits later on at their retirement age.
Besides, they notify the Social Security Administration to repay the money received and then apply for their benefits again later on. They then receive benefits that are due at that age.
2. Suspension of Consecutive Social Security Benefits
There is another option for a do-over, which is usually when your financial situation changes. It’s where you reach full retirement age, about 66, and you decide to suspend your benefit.
Doing so earns you delayed retirement credits. It boosts your benefits by 8% a year until you decide to restart payments or till you reach age 70.
to return the benefits received if you opt for this. However, the 25% reduction still applies if you opt to start payments at an early age of 62.
3. What You Need to Know Before Opting for a Do-Over
Remember, social security benefits are an important source of income during retirement. So you have to plan ahead wisely, keeping these rules in mind before opting for a do-over:
- Withdraw your social security application only once
- If you were enrolled for Medicare, you have to pay the premiums. The premiums otherwise get automatically deducted from your social security paycheck
- Have a financial plan for the rest of your life ready by the time you are eligible for social security
- Decide on the best age to file for social security
- Delaying until age 70 to get maximum benefit may not always be the best option
Your Burbank Social Security Benefits Lawyer Can Also Help
Always consult the Social Security Administration to determine your available options. Alternatively, also work with your social security benefits lawyer. They will help ensure you make the best decision that maximizes your total retirement income.