Stop & Restart SS??

[RE2Boys]

Currently, I'm receiving SS (started at age 63) and my minor son is also receiving monthly benefits. His benefits stop when he graduates HS. At that point, I'll be 67 (my FRA is 66).

Is it possible or advantageous to suspend my benefits at that time and restart benefits at 70? Spousal benefits are not an issue as my wife is much younger and benefits under her own record are much greater than anything she would be entitled to under my work record (WEP impacted) and we can easily live without the SS benefit. Primary reason I took SS is for the family benefit for minor children and the fact that we aren't dealing with significant amounts (about $400 a month).

Thanks in advance for comments.

 

[Bamaman]

No, you cannot stop SS when you've been drawing it over a year. You could stop it and pay the money back in the first year.

 

[RE2Boys]

Well, I found part of my answer here:
Retirement Planner: Suspending Retirement Benefit Payments

I can suspend benefits ( and restart later) as long as I am over FRA, which would be the case. Now to research if beneficial in any way.

 

[MichaelB]

From the link

If you started receiving Social Security benefits less than 12 months ago and you changed your mind about when they should start, you may be able to withdraw your Social Security claim and re-apply at a future date.

 

[RE2Boys]

From the link

Unfortunately, started SS benefits about two years ago, should have mentioned that.

 

[RE2Boys]

According to Larry Kotlikoff , my question is his number one SS Secret, so got my answer. The 8% per year increase is SS benefit for delayed retirement would be applied to my reduced benefit that I took early, age 63. So in my scenario, I would give up about 30 months of checks for a lifetime increase in SS of about 20% commencing at age 70

Based on : 34 Social Security Secrets You Need to Know Now
http://www.pbs.org/newshour/author/lkotlikoff/

 

[MichaelB]

From the link

If you are already collecting your retirement benefit and are at or over full retirement age, you can tell Social Security you want to suspend further benefits and then ask them to restart your benefits at a later date, say age 70. Social Security will then apply its Delayed Retirement Credit to your existing benefit once you start collecting again.

RE2B, have you reached full retirement age? From your posts it seems as if you still had a bit to go.

 

[RE2Boys]

From the link

RE2B, have you reached full retirement age? From your posts it seems as if you still had a bit to go.

Not quite, will hit it in 3 months. Would not suspend until youngest out of HS in June 2017. Just planning ahead on a rainy day.

 

[pb4uski]

What you are considering sounds smart to me if you are in good health and have other funds to live on from when you suspend benefits until you turn 70.

 

[NYEXPAT]

I plan on doing the same thing (collecting at 62 and stopping at 66) although my two young children (10 and 6 mos) will continue to collect their benefit the whole time. If you do not need the money now, I would suggest you stop at 66 and get the 8% increase for an additional year.

 

[harley]

I plan on doing the same thing (collecting at 62 and stopping at 66) although my two young children (10 and 6 mos) will continue to collect their benefit the whole time. If you do not need the money now, I would suggest you stop at 66 and get the 8% increase for an additional year.

AFAIK you can't do that. That was possible until a couple of years ago, but after the gimmick got publicized (mostly by John Greaney) the gov't changed the rules so you can only suspend within 1 year of starting. I believe Haha was the last person in the country to get in under the old rules.

 

[nate2953]

You can suspend benefits and your auxiliaries will continue to Receive their benefits. So you can suspend at FRA and your child will continue to get monthly benefits


Sent from my iPhone using Early Retirement Forum

 

[springnr]

AFAIK you can't do that. That was possible until a couple of years ago, but after the gimmick got publicized (mostly by John Greaney) the gov't changed the rules so you can only suspend within 1 year of starting. I believe Haha was the last person in the country to get in under the old rules.

Harley, what you are referring to is; "withdrawing your Social Security claim", and then re-apply at a future date.

This is "suspending your claim", allowing you to accrue delayed retirement credits until you request to start again or reach 70. Might come in handy during a bear market if needed to get through a rough patch.

Retirement Planner: Suspending Retirement Benefit Payments

 

[harley]

So you can start taking your SS at 62, then suspend when you are 66(ish) and you will get additional credits until you are 70? Is that adding 8%/yr to the amount you were getting at 62? Or does it reset completely and allow you to get the max possible at 70? I read the link, but I don't see how that could work.

 

[springnr]

The delayed credits are then added to the reduced amount from starting at 62. So at 70 it would be restarted at an amount comparable to if you had waited until ~66/67 to start.
(SS at 62 = .7542 + .32 delayed = 1.0742)
(SS at 64 = .8667 + .32 delayed = 1.1867)

 

[harley]

Interesting. I just read Larry Kotlikoff's "Get What's Yours", but I didn't pay that much attention to the other options beyond what we need to do. It's a tricky subject.

 

[RE2Boys]

I plan on doing the same thing (collecting at 62 and stopping at 66) although my two young children (10 and 6 mos) will continue to collect their benefit the whole time. If you do not need the money now, I would suggest you stop at 66 and get the 8% increase for an additional year.

I hadn't thought of that.......kept thinking that once I suspend the child's benefit would stop so was thinking of continue to collect mine until he was no longer eligible. But if I can suspend at 66 and he can continue collecting, then it would be better to suspend at 66 (three months from now). It would give me more room to continue Roth conversions at the 15% tax bracket. But will need to look at break even as my wife will always collect more under her own record than any benefit from my SS......spousal longevity insurance based on my benefit not relevant.

In the big picture, it may not be worthwhile to suspend, but it is good to know what my options are.

 

[growing_older]

Answers are all over because there are two strategies being discussed.

1. Stop SS. Withdraw your application. Pay back all the benefits you received and re-apply at the later age for the increased benefits accrued. This is no longer allowed after the first year, so doesn't apply in your case.

2. Suspend SS benefits you are receiving. Wait for delayed benefit credits to accumulate, then restart SS benefits at an increased rate (about 8% per year delayed, not compounded). This is tricky and requires some actions to happen only after FRA. This is probably what you are looking for.

 

[NYEXPAT]

It seems many here confuse File and Suspend with Start,Stop,Start and it is understandable as most do not plan to use the second strategy.

In my case, the spouse is a non US citizen (28 years my junior) as well as two sons 10 and 6 mos. I designed this strategy, to maximize benefits in the early years, while providing a good survivor benefit to my spouse who would never qualify on her own.

 

[rodi]

I am learning so much from this thread. My husband (and sons) are collecting. But if he can suspend at FRA (66) and the kids could still collect, that would be awesome. We'll have to see where we are, financially, but all of this is good to know about. Reason #374 why I like ER.org.