Social Security is a key source of income for many retirees, and for some, the temptation to claim benefits at the earliest age of 62 is strong. After all, 62 is the earliest age you can file for Social Security, and many feel that getting the benefits earlier rather than waiting makes sense. However, claiming Social Security at 62 means you are settling for a reduced benefit. Here’s what you need to know about how to avoid locking yourself into a smaller benefit, especially if you realize later that you need more money each month.

Why Claiming Social Security at 62 May Not Be the Best Decision

The Social Security system is designed to offer full monthly benefits once you reach your full retirement age (FRA). If you were born in 1960 or later, that age is 67. However, for those who choose to claim at 62, the benefits are lower than what they would be at FRA. While this may seem like an easy way to start receiving payments sooner, it could backfire in the long run if you find yourself needing more money later on.

Imagine you file for benefits at 62 and leave your job. At first, the reduced monthly payments may seem fine. But as time goes on, you may realize your expenses are higher than expected, and your Social Security payments aren’t enough to cover everything. The problem is, once you’ve started receiving Social Security at a reduced rate, it’s a lifelong commitment, with the benefits remaining the same for the rest of your life.

The Secret Rule: One Do-Over for Social Security Claims

Here’s the good news: There is a lesser-known rule that allows you to undo your Social Security filing and potentially start again with a higher benefit amount. The Social Security Administration (SSA) offers one “do-over” for each filer in their lifetime, meaning that if you’ve claimed Social Security at 62 and wish you had waited longer, there’s a chance to reverse that decision.

However, this process isn’t as simple as it sounds. While it’s easy to withdraw your Social Security claim, doing so requires you to repay all of the money the SSA has already paid you in benefits. This is an important condition that you must meet within 12 months of your initial filing date. In short, you’ll need to pay back all the benefits you’ve received if you decide to withdraw your claim.

Why This Could Be a Big Challenge

It might seem straightforward to undo a Social Security claim, but the repayment process can become tricky. Imagine you filed for benefits at 62 and received several months of payments. Now, you realize you should have waited longer to get a higher monthly benefit. However, by this time, you may have already spent the money you received from the SSA. This leaves you with limited time (12 months) to come up with the funds to repay the SSA before the opportunity closes.

You might need to go back to work, even part-time, or tap into your home equity to repay the benefits. While these options are available, they are not always ideal, and they can be stressful.

How to Plan Before You Claim Social Security

Before rushing to file for Social Security at 62, it’s wise to carefully plan out your decision. While it’s nice to know that you can undo your claim, the best strategy is to pick the right filing age from the start, so you don’t end up in a situation where you need to repay benefits later on.

Your Social Security earnings statement will give you an idea of how much you can expect to receive based on when you file. By creating an account on the SSA’s website, you can estimate your benefits for filing at age 62, your full retirement age (67), or even later. These estimates can help you decide what makes sense based on your retirement goals.

It’s also important to consider your future expenses and lifestyle. Do you expect to have higher costs during retirement than you originally thought? If so, it might make sense to wait a few extra years before filing for Social Security benefits.

Should You Wait Beyond 62?

While it might be tempting to claim Social Security benefits at the earliest age of 62, you should weigh the pros and cons carefully. Filing for benefits at age 64 or 65 could provide you with a larger monthly benefit than starting at 62. The difference may not seem like much at first, but it could have a significant impact on your finances in the long run.

The SSA gives you flexibility, but it’s important to make a choice that suits your long-term needs. Whether you choose to file early or wait, it’s crucial to consider how your decision fits into your overall retirement plans.

Don’t Miss Out on These Social Security Benefits

For many retirees, Social Security isn’t just about getting by — it’s about ensuring a comfortable lifestyle. But some retirees miss out on valuable Social Security bonuses that can significantly increase their retirement income. If you’re not aware of the little-known strategies for maximizing your Social Security benefits, you could be leaving money on the table.

By learning how to optimize your Social Security benefits, you may be able to boost your annual income by as much as $22,924. Imagine how much that extra income could help your retirement planning. For those who want to retire with peace of mind, it’s essential to take advantage of these little-known secrets.

Conclusion

In the end, claiming Social Security at age 62 might be a choice you regret if your expenses increase unexpectedly. However, with the option to undo your filing, you have some flexibility. Just remember that undoing your claim comes with the challenge of repaying benefits, and you should plan accordingly.

Before making your decision, estimate your monthly expenses and consider waiting beyond 62 to claim your Social Security benefits. By taking a thoughtful approach, you can avoid costly mistakes and ensure you’re making the best choice for your financial future.

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