Retroactive SS Lump Sum is Attractive, But There Are Consequences
In this NJ.com article by Karen Price Mueller, the author responds to a question about accepting a retroactive lump sum when applying for Social Security after full retirement age. The article explains the pros and cons of accepting a retroactive lump sum, but makes one error in describing the consequences. The article states that accepting the lump sum “will mean your spouse will also get a smaller benefit if the spouse takes benefits on your record” which is not the case. A lower-earning spouse’s benefit will be based upon the higher-earning spouse’s full retirement age benefit, regardless of when the higher-earning spouse claims. But the article is otherwise accurate about the pros and cons of accepting a retroactive lump sum. Click here to read the nj.com article by Ms. Mueller.