Choosing what age to begin taking Social Security is one of the biggest retirement decisions you'll make, and it will affect your monthly income for the rest of your life.
To receive your full benefit based on your work history, you'll need to wait to file until your full retirement age (FRA), which is age 67 for anyone born in 1960 or later. You can claim before or after that age, though -- as early as age 62, or up to age 70.
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Filing early will result in smaller checks each month, while delaying benefits past your FRA will earn you your full benefit plus a bonus amount. Claim at 62, and your benefits will be permanently reduced by up to 30%. If you wait until 70, you'll earn at least 24% extra on top of your full benefit.
These adjustments often amount to hundreds of dollars per month, so it's important to think carefully about what age to file. But what if you end up changing your mind after you claim, or your life circumstances change? Here's what happens if you regret your decision.
It's possible to change your mind after you file
If you begin taking Social Security and then change your mind, you have an opportunity for a do-over. You can withdraw your application after you file, but there are a few requirements you'll need to meet first:
- You can only withdraw your application one time
- You can only withdraw your application within 12 months of filing for Social Security
- You must repay all the benefits you've already received (including Medicare payments that may have been withheld from your checks)
Once you've successfully withdrawn your application, you can file again whenever you choose. This can be a smart move if you claim early but then decide you'd rather delay benefits. Rather than locking in those smaller payments, you can undo your decision and claim later.
A different option for boosting your checks
If you can't meet all the requirements for withdrawing your application, there's another option: suspending your benefits.
You'll need to wait until you reach your FRA to suspend your benefits, but at that point, you can press pause on collecting payments up to age 70. When you begin receiving checks again, the Social Security Administration will recalculate your benefit to account for the payments that were withheld, and you'll earn a larger benefit amount.
Keep in mind that your decision will also affect others receiving payments based on your record (such as a spouse collecting spousal benefits), and they will not be able to receive benefits while yours are suspended. If you're divorced and your ex-spouse is collecting divorce benefits, however, they will not be affected by your benefit suspension.
Is it worth it to reverse your decision?
Ideally, it's best to thoroughly consider your decision before you begin taking Social Security so you won't have to reverse that decision. But sometimes life can be unpredictable, and there are situations where it pays to change your mind.
For example, maybe you started taking Social Security at 62 but then quickly decided to go back to work. Depending on your wages, a portion of your benefits could be withheld if you continue to work while on Social Security. If you can afford it, then, it may be wise to withdraw your application and claim later.
Your marital status could also impact your decision. If you're married and one of you passes away, the other can sometimes receive the deceased person's entire benefit amount in survivor benefits. While it's not the most pleasant topic to think about, if one of you has developed health problems, delaying benefits could be a smart move to provide the surviving spouse with some extra income later in life.
Just keep in mind that if you withdraw your application or suspend your benefits, you'll need to rely on other sources of income until you start receiving payments again. If that's going to drain your savings too quickly, consider whether reversing your decision is really worth it.
There's not necessarily a right or wrong time to take Social Security, as it will depend on your situation. But you have options if you change your mind after you file, and knowing these options can help you make the best decision for your retirement.
