The large majority of Americans will file for Social Security some time between the ages of 62 and 70 with benefits steadily increasing over that period for those who wait. As a result, claiming early means leaving money on the table by accepting a smaller monthly check, and the difference in benefits for someone claiming closer to 62 versus someone claiming closer to 70 can be hundreds if not thousands of dollars.
If you've already filed for Social Security and now regret making that choice, there may still be time to act. The Social Security Administration offers qualifying retirees the option to reset their benefits. Here's what you need to know.
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Here's how to undo your Social Security claim
If you filed for Social Security already and wish that you hadn't, you have the option to rescind your benefits claim. You are allowed to do this one time if you filed for benefits in the past 12 months and you're willing to repay all of the benefits that you have collected thus far. This includes any money you or your family received if someone else claimed benefits on your work record. It also includes any money that was withheld to cover Medicare premiums, wage garnishments, or taxes.
You will need to complete a request to cancel your application for benefits online, or you can download Form 521: Request for Withdrawal of Application and mail the form to the Social Security office that is located closest to you.
Should you rescind your Social Security benefits claim?
Rescinding a Social Security claim can be a big decision with major financial implications.
As mentioned above, you have to pay back all of the benefits you've already received, which can add up to tens of thousands of dollars pulled out of your retirement savings. The financial burden becomes even greater if your partner received spousal benefits as well.
But undoing your claim does mean resetting the clock, so when you apply for Social Security down the road, your monthly benefits will be higher. Specifically, they will be calculated based on your age when claiming the second time. For most Americans, studies have shown the wait should increase the amount they collect in lifetime benefits from the program.
In recent years, surges in inflation and economic uncertainty have highlighted the importance of having a guaranteed source of income with cost-of-living adjustments built into it.
All of this means that delaying Social Security could help you ultimately enjoy a more secure retirement. Rescinding your claim gives you the one chance to do that. For those who have already collected benefits for more than 12 months, you may also have another path forward once you reach full retirement age.
