How Withdrawal of Social Security or Voluntary Suspension Can Increase Your Benefit

Did you start taking Social Security benefits and now regret it? Maybe you started collecting Social Security and then your financial situation changed. Perhaps you decided to go back to work, inherited some money, began receiving payouts from an annuity or saw an unanticipated decrease in your expenses. 

Delaying taking Social Security benefits can increase your monthly check amount. But if you already started withdrawing, you may be asking yourself, “Can I suspend my Social Security benefits?” In many cases, the answer is “yes.” This guide explains your options.

From Social Security to life and health insurance, retirement planning can be complicated. Talk to Farm Bureau and learn all the ways we support our clients throughout retirement.

Withdrawal of Social Security Benefits

One option to pause your Social Security benefit payments is a withdrawal of benefits. You qualify if you claimed Social Security early and your payments started within the last 12 months. 

If you choose this option, you need to pay back all the benefits you received. The Social Security Administration treats a withdrawal of benefits as if you never applied for Social Security. You then apply in the future, whenever you’re ready.

Voluntarily Suspending Social Security

Voluntary suspension can be a way for you to boost your Social Security benefit in the future. You are eligible as long as you have reached full retirement age and are not yet 70. The suspension starts the month after you make your request.

With voluntary suspension, you ask Social Security to stop making your payments. Then, your benefit amount increases while you’re not collecting. Once you restart your payments, they will increase by 8 percent for each year they were suspended (2/3 of 1 percent per month) until you reach age 70. 

You can request a suspension by contacting Social Security by mail, phone or going to your local Social Security office in person.

What to Think About Before You Decide

Suspending your Social Security benefits can affect other aspects of your finances, so it’s important to consider these factors:

• Your spouse and children can’t collect any family benefits through your account while it’s suspended, and you can’t collect spousal benefits. 
• While you can restart your benefits whenever you like, you can’t collect retroactive benefits for the time when your benefits were suspended.  
• You can’t deduct Medicare Part B premiums from your suspended benefits, so you’ll need to pay them another way while your benefits are suspended.
• If you collect Supplemental Security Income (SSI), you may not be eligible when your Social Security payment suspension is in effect.

What if You Change Your Mind?

If you decide you would like to restart your Social Security benefits, you can do so at any time. If you don’t ask to restart your benefits, they will resume automatically when you turn 70.

Get Help Maximizing Your Retirement Funds

At Farm Bureau, our agents know that your retirement funds come from many different sources – 401(k)s, Social Security, annuities, etc. They’re equipped to work with you to balance your sources of retirement income and help you evaluate how Social Security can fit into your overall strategy. Find an agent to get help with your unique situation.