How to increase your Social Security benefits if you file early
You are eligible to claim Social Security benefits as early as age 62, but you do not receive full benefits until you reach full retirement age (FRA). FRA is either 66 years of age or 66 to 67 years of age, depending on your year of birth. If you file for benefits before FRA, your monthly benefits will be reduced for the rest of your life. This is the main reason recipients are advised to wait for FRA to claim benefits. But if for some reason you claimed your benefits early and now you’re regretting that decision, all is not lost yet. There are still some options available to help you recover some of your lost benefits. So, this article explains how you can increase your Social Security benefits if you file for them early.
If you’re regretting your decision, here are some ways to increase your Social Security benefits by filing early:
Withdraw your application
SSA gives you one opportunity to rescind your decision to file early. However, if it has been less than a year since you started collecting Social Security benefits, you may only use this opportunity once in your lifetime.
In this case, all you have to do is withdraw your claim for benefits and return all the money you have ever received in benefits. You can apply for unemployment benefits again later.
If you have already spent the benefits you received, you may need to use your savings to pay the money back. Additionally, any checks your spouse or children receive based on your records will not stop or increase during that time.
Therefore, it is important to understand the implications of withdrawing an application. If you don’t mind depleting your savings, or if you regret your decision to file early, increasing your Social Security benefits is your best option.
cut down the money
If it’s been more than a year since you applied for Social Security, or your situation prevents you from applying, your best option is to increase your monthly benefit by reducing your costs.
One of the best ways to significantly cut costs is to move to a place with a lower cost of living. You may also consider selling your home and buying a similar or smaller home in another area where it may be less expensive.
If you don’t need much of your vehicle at your new location, you may want to consider selling it. It helps you save on car maintenance, insurance, and other related costs.
keep working
You can still work to supplement your small Social Security check. However, if you are working while receiving benefits, your benefit amount may be reduced if your income exceeds a certain level. SSA permanently increases your monthly benefit once you reach full retirement age.
Working longer hours also has other benefits. SSA uses your 35 highest earning years to calculate your monthly benefit amount.
So, if you continue to work and earn more, the years (or years) you have worked since claiming benefits may count towards your top 35 earning years. This will ultimately help increase your monthly benefit.
These on-the-job strategies are especially helpful for people who work inconsistently or have a low income history.
Earn extra income
If it’s too late to withdraw your application, you can easily boost your monthly benefit check by earning some side income. Nowadays, several options are available to help people make money.
For example, if you like crafts, you can easily sell them online, or if you like music or can play an instrument, you can offer classes from home. Or, if you have a car, you can make money by transporting passengers around town.
Make the right decision the first time
Therefore, the above method is a way to increase your Social Security benefits if you apply early. But it’s better not to have to resort to these options, and the best way to do that is to decide correctly when to claim Social Security from the beginning.
Understanding the implications of claiming benefits early is important to make the right decision. The first thing you need to know is that your benefits could be reduced by up to 30% compared to what you would receive if you claimed at FRA. Another implication is that your decision to claim benefits may also affect your spouse’s benefits.
Beyond what that means, you should ask yourself a few questions that will help you make the right decision about claiming benefits. These questions include:
- Do I need benefits now?
- How much monthly benefit will I receive if I apply now?
- Are my savings enough to live without benefits now and for the foreseeable future?
- Have you spoken with your spouse and financial professional about your decision to claim benefits now?
If you can answer these questions accurately and understand what they mean, there’s a very good chance you won’t have to look for ways to increase your Social Security benefits, even if you file early.
