Americans can begin collecting Social Security payments as early as the age of 62, but this isn’t always the best option. The longer you wait to claim Social Security, the larger your payment will be when you do.
For example, if you collect at age 62 instead of 67, your payment will be 30 percent lower on average.
Seniors choose to claim benefits early for a variety of reasons, including the necessity for immediate income or the desire to invest the funds for a larger long-term reward. However, they occasionally come to regret their decision.
If you believe you applied for Social Security too soon, there are options to supplement your income to assist pay for unexpected expenses or to fund a lifestyle change. According to The Motley Fool, there are three options.
Get Back to Work
The biggest advantage of returning to work after retirement is that you now have another source of income, which could potentially boost the average wages on which your Social Security benefits are based if you earn a higher average salary than you did previously.
In this situation, your current higher salaries will push out past, lower-earning years, increasing your average pay calculation and benefits.
One thing to bear in mind, according to Motley Fool, if you are under your full retirement age (FRA) and earn enough money, you may have to temporarily forego Social Security benefits.
That, on the other hand, might not be such a bad thing. It essentially means that your benefits will be temporarily lowered or terminated in order to improve them in the future.
Claim for Benefits Cancelled
If it’s been less than a year since you filed for Social Security benefits, you can do this. What this implies is that you will have to repay all of the benefits you received after your original claim, allowing you to start over with the prospect of claiming bigger benefits at a later date.
Of course, you can only do this provided you have the money to pay back the benefits you received initially.
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Benefits are halted
You can request that your benefits be suspended if you have already achieved full retirement age. In this case, you would not receive payments until you reached the age of 70 or until you requested that they be reinstated.
This option allows you to start earning delayed retirement credits, which will improve your monthly income over time.