Q & A
I think my parents made a bad choice when my dad started taking Social Security at 63. Mom is younger, still working, and in great health. According to her statement from Social Security, her benefits will be a fifth of his so I think she would benefit from a higher widow’s benefit. Can they undo his selection?
Answer: Their options depend on his current age. If it has been less than 12 months since he claimed benefits, he can stop his payments and pay back all of what he has received. By doing this, the Social Security Administration (SSA) will treat him as though he never claimed benefits. The whole decision is wiped off the books. If it has been longer than a year, he is stuck with what he is getting until he reaches his Full Retirement Age (FRA). At anytime after he reaches his FRA, he can suspend payments. Each year he delays, he will get a delayed credit of 8% on what he was receiving at the time he suspends the payments. These delayed credits won’t accrue past age 70. Read more…
Source: Dan Moisand – Market Watch, The Wall Street Journal (July 20, 2013)