Pause your Social Security payments to maximize your future income

Social Security is a basic program that pays out income in retirement in the United States. But not everyone is aware that these benefits can be temporarily suspended.

You might benefit from this choice if you plan to raise your monthly payments in the future.

For instance, even if you can start getting benefits at age 62, the amount you receive will be less than if you wait until you reach full retirement age, which is normally 67.

Your monthly benefits will be maximized if you wait until you’re 70. Waiting so long can be challenging, of course, but if your financial circumstances alter, you may want to think about suspending benefits.

What does it mean to suspend your Social Security benefits?

If you start receiving Social Security and then find another source of income—perhaps from a new job, an inheritance, or other unforeseen financial support—this option can be very alluring. You can raise the amount you get when you start receiving benefits again by stopping them.

Not all Social Security recipients have the option to stop receiving payments. You must have attained your full retirement age, which is presently 67 in most situations, in order to be eligible. You have to wait until you reach this age to ask for a suspension if you began getting benefits prior to it.

Those who have been receiving benefits for less than a year are exempt, though. You can essentially stop receiving benefits by withdrawing your initial application if this is the case for you. Is there a catch? Any advantages you have received up to that time will have to be paid back.

How to suspend your Social Security benefits

Social Security benefits suspension is an easy process that doesn’t involve a lot of documentation. This request can be made in three main ways:

• By phone: Contact the Social Security Administration directly.
• In person: Visit your local Social Security office.
• In writing: Send a formal request to the administration.

If you are not seeking approval for a new benefit claim at the time of processing, the suspension will begin the month after the approval of your request.

Until you wish to resume benefits or until the month before your 70th birthday, whichever comes first, the benefits will stay suspended.

In certain situations, you can request that benefits be suspended in advance. But the suspension cannot begin prior to:

• The month following your request.
• The date you reach full retirement age.
• The first month you re eligible for benefits if it s your initial application.

Potential drawbacks of suspending benefits

Suspending your Social Security benefits has repercussions even if it can be a useful tactic for raising future payouts. Depending on your circumstances, you can face the following serious drawbacks:

• If your spouse or children receive benefits based on your work record, their payments will also stop when you suspend your own. The exception is for an ex-spouse receiving benefits based on your record; those payments will continue unaffected.
• If you re receiving benefits based on someone else s record, those payments will also be suspended.
• If you re enrolled in assistance programs like Supplemental Security Income (SSI), suspending your benefits could impact your eligibility for those programs until your Social Security payments resume.

Impact on Medicare Part B

The effect that delaying your Social Security benefits will have on your health insurance coverage is another crucial consideration. The premiums are typically taken straight out of your Social Security benefits if you are enrolled in Medicare Part B, which covers outpatient medical costs.

The Centers for Medicare and Medicaid Services will send you direct bills to pay your premiums after those payments are halted. Careful budgeting is required in light of this adjustment in order to prevent skipping payments and maybe losing coverage.

Is suspending your benefits the right choice for you?

Your particular financial circumstances will determine whether your Social Security benefits are suspended. Benefit suspension may be a good strategy to boost your long-term income if you have other sources of income or do not currently need the payments.

But it’s important to think about the possible downsides, particularly if other people depend on the advantages associated with your account.

To fully understand the ramifications of this choice, it is essential to visit a Social Security office or consult a financial expert before making any decisions. You can take actions now that can increase your financial stability in the coming years if you plan carefully.

See also: U.S. seniors’ eligibility for $1,924 in Social Security benefits this and next week.

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