Can You Cancel Your Social Security - I AM 61

[RHONDAVE]

Can You Cancel Your Social Security APPLICATION- I AM 61

I just applied for Social Security a week ago.
I am 61 and turn 62 in Jan 2023.
I have read here that the COLA 8.7 will never be adjusted on my account.
Would it be beneficial to wait a year until age 63?

 

[Spock]

I just applied for Social Security a week ago.
I am 61 and turn 62 in Jan 2023.
I have read here that the COLA 8.7 will never be adjusted on my account.
Would it be beneficial to wait a year until age 63?

You'll have to define "beneficial".
Everybody's SSA amounts go up a varying percentage for each year you wait past 62 until your full retirement age and then 8ish% for each year until age 70. You get your full benefit at your full retirement age, a deduction for drawing "early" and the 8% "bonus" for each year after FRA.
Play with https://opensocialsecurity.com/ to see.
In the end, the math is intentionally setup so that it doesn't really matter. You start early you get lower for longer. You start later you get more for shorter.
The bigger considerations are what your spouse can get in survivor benefits. Everybodies situation is different.

 

[Sunset]

I just applied for Social Security a week ago.
I am 61 and turn 62 in Jan 2023.
I have read here that the COLA 8.7 will never be adjusted on my account.
Would it be beneficial to wait a year until age 63?

Was one of the reasons you applied for SS at age 62 below: ?

1. Planning to die young (sick, family history short lives, very unhealthy, skydiver)
2. Single, so survivor benefit doesn't count.
3. Young children so they can get SS.
4. Married, but spouse subject to pension penalty so won't get spousal benefit.
5. Vast difference in spouse age, so claim now so spouse can get spousal benefit.
6. Poor and will starve without the money.

If not, then consider claiming a few years later so you end up with more if you live past age 82. The longer you wait, the more you will get per year, and the more in total past age 82.

 

[Irishgirlyc58]

I started getting SS last January-received first payment in February and I got the cola for 2022 in my benefits. I’m no expert but I believe your benefits should see that 8.7% increase.

You can cancel your SS application up to a year after receiving benefits that first year. If you cancel after receiving benefits you will need to pay back what you received.
Then your clock restarts as if that application never happened.

 

[RHONDAVE]

I started getting SS last January-received first payment in February and I got the cola for 2022 in my benefits. I’m no expert but I believe your benefits should see that 8.7% increase.

You can cancel your SS application up to a year after receiving benefits that first year. If you cancel after receiving benefits you will need to pay back what you received.
Then your clock restarts as if that application never happened.

With 8 million people affected as mentioned in this article, it would be nice if this was addressed.

https://www.helpwithmysocialsecurity.com/post/social-security-colas-for-ages-60-62

 

[Irishgirlyc58]

Don’t hold your breath! [emoji23]
But I think that’s more about the PIA calculations than the cola when you start receiving benefits.

I forgot to mention that last month SS recalculated my benefits adding in my income from 2021-since they didn’t have that when I applied. It raised my benefits by $91/month and I got back payment. I was pretty happy about that. I’m subject to WEP so adding one more year under SS swapped out a zero year giving me that nice bump.

 

[Kabowest]

With 8 million people affected as mentioned in this article, it would be nice if this was addressed.

https://www.helpwithmysocialsecurity.com/post/social-security-colas-for-ages-60-62

This article is a bit misleading. This topic and article are discussed in a previous thread.

https://www.early-retirement.org/fo...benefits-reflect-the-8-7-increase-115635.html

 

[May 23 or Bust]

Devin Carroll just posted a video on this. 61 is a true donut hole as far as inflation adjustments. At 61 you will not receive the COLA increase nor will your average wage index or bend points be adjusted.

https://youtu.be/O2jOLyGrSN0

 

[Sunset]

With 8 million people affected as mentioned in this article, it would be nice if this was addressed.

https://www.helpwithmysocialsecurity.com/post/social-security-colas-for-ages-60-62

Seems fair to leave it, as it's the way it's been forever, just like you can't take SS at age 55.
It's how it works.

 

[PERSonalTime]

I started getting SS last January-received first payment in February and I got the cola for 2022 in my benefits. I’m no expert but I believe your benefits should see that 8.7% increase.

You can cancel your SS application up to a year after receiving benefits that first year. If you cancel after receiving benefits you will need to pay back what you received.
Then your clock restarts as if that application never happened.

+1

 

[VanWinkle]

I just applied for Social Security a week ago.
I am 61 and turn 62 in Jan 2023.
I have read here that the COLA 8.7 will never be adjusted on my account.
Would it be beneficial to wait a year until age 63?

Yes you can cancel within 1 year of starting(you have to pay the money back) or you can suspend your payments after full retirement age.

Whether you should do it is another question.

 

[VFK57]

The most important thing in your question is the Life Expectancy. If you do not have major problem(s) with your health, the 2022 male Life Expectancy is 73.2 (down 1 year vs 2021). If I trust our data, it is better to take SS at 62.

 

[VanWinkle]

The most important thing in your question is the Life Expectancy. If you do not have major problem(s) with your health, the 2022 male Life Expectancy is 73.2 (down 1 year vs 2021). If I trust our data, it is better to take SS at 62.

This life expectancy is not accurate for a 61 year old male. It is 20.85 years for
a 61 yr old male. A 65 year old male expectancy is close to 84 years old.

 

[niven]

Devin Carroll just posted a video on this. 61 is a true donut hole as far as inflation adjustments. At 61 you will not receive the COLA increase nor will your average wage index or bend points be adjusted.

https://youtu.be/O2jOLyGrSN0

Incorrect - individuals turning 62 in 2023 get the almost 8.9% increase determined for 2020 wages and all years before. That factor was determined this year. There just isn't an adjustment for wages earned in 2021 and 2022, as the factors will not be available before your PIA is set.

https://www.ssa.gov/cgi-bin/awiFactors.cgi

 

[May 23 or Bust]

They would not get the Wage index increase for 2022. Directly from the page you cite:

"An individual's earnings are always indexed to the average wage level two years prior to the year of first eligibility. Thus, for a person retiring at age 62 in 2023, the person's earnings would be indexed to the average wage index for 2021"

And they don't get the COLA as that would be in the year they reach 62, the COLA increase calculated 3rd Q 2023. The definition of a donut hole.

 

[niven]

Incorrect - individuals turning 62 in 2023 get the almost 8.9% increase determined for 2020 wages and all years before. That factor was determined this year. There just isn't an adjustment for wages earned in 2021 and 2022, as the factors will not be available before your PIA is set.

https://www.ssa.gov/cgi-bin/awiFactors.cgi

They would not get the Wage index increase for 2022. Directly from the page you cite:

"An individual's earnings are always indexed to the average wage level two years prior to the year of first eligibility. Thus, for a person retiring at age 62 in 2023, the person's earnings would be indexed to the average wage index for 2021"

And they don't get the COLA as that would be in the year they reach 62, the COLA increase calculated 3rd Q 2023. The definition of a donut hole.

As I said, they get the almost 8.9% increase for 2020 wages and before, determined this year. That is the "indexed to the average wage index for 2021" part. Please read what I wrote.

 

[Gumby]

Here are the AIME index factors if you turn 62 in 2023.

https://www.ssa.gov/cgi-bin/awiFactors.cgi

So, in calculating the AIME -- 2020 wages get multiplied by 1.0889195; 2021 wages get multiplied by 1.0; and 2022 wages get multiplied by 1.0.

 

[niven]

Here are the AIME index factors if you turn 62 in 2023.

https://www.ssa.gov/cgi-bin/awiFactors.cgi

So, in calculating the AIME -- 2020 wages get multiplied by 1.0889195; 2021 wages get multiplied by 1.0; and 2022 wages get multiplied by 1.0.

Right, and the factors for 2019 wages and before are multiplied by 1.0889195 as well.

EDIT: I realized some may misinterpret that statement. The factors listed by the SSA page are already adjusted for you.

 

[Gumby]

Right, and the factors for 2019 wages and before are multiplied by 1.0889195 as well.

Yes. I thought that was implied, but I could have been more complete.

 

[May 23 or Bust]

I did read what your wrote. You said it was incorrect that a person who is 61 is in the donut hole. The 2021 index increase is based upon the rise from 2020 - 2021. It may have been used this year to calculate for 2020 but is not impacted by the inflation of 2022. The person also does not receive the COLA increase as they don't turn 62 until next year.

So the individual does not receive any "benefit" of a high inflation rate in the year they are 61 for their SS calculations.

 

[niven]

I did read what your wrote. You said it was incorrect that a person who is 61 is in the donut hole. The 2021 index increase is based upon the rise from 2020 - 2021. It may have been used this year to calculate for 2020 but is not impacted by the inflation of 2022. The person also does not receive the COLA increase as they don't turn 62 until next year.

So the individual does not receive any "benefit" of a high inflation rate in the year they are 61 for their SS calculations.

At 61 you will not receive the COLA increase nor will your average wage index or bend points be adjusted.

The average wage index and bend points are adjusted though, but for the last wage data that the SSA has available. This is my point. It is misleading to tell people turning 61 that they get no adjustments period.

 

[11522914]

So the individual does not receive any "benefit" of a high inflation rate in the year they are 61 for their SS calculations.

You are correct that at age 61 you do not get the SS annual inflation adjustment, but incorrect stating no benefit at age 61. When I turned 61 my SS increased by the exact same % as the wage indexed increased. So that is proof enough for me.

 

[ER Eddie]

Incorrect - individuals turning 62 in 2023 get the almost 8.9% increase determined for 2020 wages and all years before. That factor was determined this year. There just isn't an adjustment for wages earned in 2021 and 2022

Appreciate the clarification. I turn 62 next year, and I may take SS. I don't wanna end up in a donut hole! The first part is all that concerns me (the 8.9% increase). I didn't earn any wages in 2021 or 2022, so the second part is a moot issue, at least for me. Cheers.

 

[Brett_Cameron]

I just applied for Social Security a week ago.
I am 61 and turn 62 in Jan 2023.
I have read here that the COLA 8.7 will never be adjusted on my account.
Would it be beneficial to wait a year until age 63?

Should make no difference if you wait a year wrt cola. PIA is a function of lifetime SS earnings until age 60 or so after that PIA is adjusted annually with CPI. Your initial benefit should have the 2021-2022 calculated COLA baked in. Subsequent COLAs are applied to you benefit amount.

 

[imnontrad]

1. You will get the increase, do not sweat it. Those who are not retirement age actually get a slightly larger increase of 8.9% based on CPI-W.
2. During your first 12 months of getting SS, you have the option for a “do over” - pay back all money received and restart later for a higher amount.

If you have a Facebook account, I am admin of a group called “Social Security Intelligence” answering all sorts of SS questions. Filing at 62 may not be the best option for you and your family.