How many times can you suspend social security benefits

As the U.S. entered this recession, the unemployment rate hit a record high. Workers have been laid off or furloughed as businesses closed due to the coronavirus. With payrolls down, the benefits that Social Security offers could be more important than ever to a growing number of people near retirement whose incomes are being impacted.

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Enrolling in Benefits Early
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Take Your Social Security Benefits, but Reserve the Right to Change Your Mind Within 1 Year
Suspending Your Social Security Benefits
Can I stop and restart Social Security benefits?
What happens if I stop my Social Security benefits?
What can cause you to lose your Social Security benefits?
How do I Unsuspend my Social Security benefits?

How to Calculate the Break-Even Age for Taking Social Security

It’s impossible to know exactly how this recession will impact our economy long term, but we do know it might be impacting how retirees strategize their benefits. Depending on your unique situation, you might find yourself turning to one of these claiming strategies:

Enrolling in Benefits Early

If you’re 62 or older and faced with an unexpected job loss, you need to figure out if you will retire early or look for another job. Will you start taking Social Security, or will you tap into your retirement savings for income?

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If you do decide to start taking Social Security early, you need to understand that your benefit will be permanently reduced if you claim before your full retirement age (opens in new tab), which is somewhere between 66 and 67. For those who turn 62 in 2020, full retirement age (opens in new tab) is 66 and 8 months.

Because of the permanent reduction in benefits, we usually recommend waiting to claim Social Security until full retirement age or later … but if you need the income, taking Social Security early might be a good option.

You are allowed to withdraw your Social Security benefits after enrolling. If you start taking Social Security before full retirement age and then find another job, you might decide to withdraw your benefits, or else you’ll face a reduced monthly check if you earn too much (opens in new tab). You can withdraw your benefits within the first year of claiming Social Security, no matter what your age. You must pay back any money you received; the Social Security Administration then treats it like you never enrolled, and your monthly check can continue to grow until you start taking benefits again.

14 Social Security Tasks You Can Do Online

Here’s an example of when this might make sense: Let’s say you're suddenly laid off at age 62 and decide to start taking Social Security to help make ends meet. You then meet with a financial adviser, who helps you come up with a plan for income, and you decide a few months later to withdraw your benefits. You can withdraw your benefits, pay the money back and allow your future benefit to grow as if you never enrolled in the first place.

To withdraw your benefits, you must fill out a special form from the Social Security Administration (opens in new tab), stating the reason for your withdrawal. You will mail the form (opens in new tab), and the Social Security Administration will notify you if you are approved. You have 60 days from the approval to cancel your withdrawal. It’s important to note you can only withdraw your benefits one time.

If you are not eligible to withdraw your benefits because it has been longer than 12 months since you enrolled, but you are between full retirement age and age 70, you can voluntarily suspend your benefits.

Let's say you enroll in Social Security at age 64, find a new job at age 66 and decide to delay retirement. If 66 is your full retirement age, you can suspend your benefits until age 70, and your future payments will continue to grow. Thanks to delayed retirement credits, your benefit will grow by 8% each year it’s suspended. Remember, it doesn’t make sense to delay taking Social Security past age 70 because your benefit stops growing.

To suspend your benefits, you must make a request to the Social Security Administration by phone, in person or in writing (opens in new tab). If you want to turn your benefits back on before age 70, you also need to contact the Social Security Administration orally or in writing. Otherwise, your benefits will be automatically reinstated in the month you turn 70.

Social Security: The Basics of When to Claim Your Benefit

Social Security is complex, and it can get even more overwhelming if you find yourself in a position where you want to suspend or withdraw your benefits. This is why you need to talk with a financial adviser as you are preparing for retirement. A professional can help you find the right Social Security strategy for your unique situation, create a comprehensive plan and make adjustments for the unexpected.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

You can only cancel your application once and can reapply later. If you've begun receiving payments, you will have to repay the money you and your family received, as well as money we withheld for Medicare premiums, taxes, and garnishments.

If you voluntarily suspend your retirement benefit, any benefits you receive on someone else's record will also be suspended. Your Medicare Part B premiums cannot be deducted from your suspended benefits. If you request voluntary suspension we will only permit benefit reinstatement the month after your request.

Ways You Can Lose Your Social Security Benefits.

You Forfeit up to 30% of Your Benefits by Claiming Early. ... .

You'll Get Less if You Claim Early and Earn Too Much Money. ... .

The SSA Suspends Payments if You Go to Jail or Prison. ... .

You Can Lose Some of Your Benefits to Taxes. ... .

You Can Lose SSDI in a Few Different Ways..

You can ask Social Security to resume payments at any time until you turn 70. If you haven't done it by then, Social Security will automatically reinstate your benefits in the higher amount.