Social Security Has an Undo Button. Here’s How to Use It

By far the most popular age to apply for Social Security retirement benefits is 62. But applying as soon as you qualify isn’t always the best move.

If you applied early and later decide you want to stop your Social Security payments, you may be in luck. There is an undo button. And if the undo button doesn’t work for you, there’s a pause button that might.

Here’s how to reverse an early Social Security claim.

React fast! Withdraw your application

If your circumstances change within 12 months of initial filing and you want to reverse your Social Security application, you can cancel it and reapply later.

If you decide to withdraw your application, you will have to repay any benefits you and your family have received since you originally applied. This includes any monies withheld from your Social Security checks to pay Medicare premiums. So make sure you can repay this money before requesting a withdrawal.

If you have other family members who are receiving benefits as a result of your application, you will need written consent from them if you are canceling your application.

Note, however, that this is a one-time emergency break-in option. You can’t turn to Social Security for free, short-term loans over and over again.

If you wish to withdraw your application, you must complete Form SSA-521 and mail it to your local Social Security office. If you decide not to withdraw your application, you have 60 days from approval to withdraw your application.

Press the pause button

If you are unable to withdraw your application and have reached full retirement age (but are under 70), you can suspend your application. Suspending your application allows you to purchase late pension credits, increasing your pension payment by 8% for each year they remain suspended.

It is important to note that if you suspend your benefits, you will not be able to receive benefits on someone else’s records. In addition, the benefits of people who receive benefits in your record will be blocked. Your payments will automatically resume at age 70, but you can request an earlier resumption of payments.

To suspend social security, you can submit the request by phone or email. You can also go to your local social security office to request the suspension. Payments will stop the month after your request.

Good reasons to hit the undo button

There are several instances where stopping Social Security payments can be beneficial.

The first case is when you are retired and working. If you retire early but start a part-time job or are working again, it may be advantageous to withdraw your application.

Social Security begins withholding some benefits after your wages exceed a certain level. While you will eventually receive these benefits, working in your early 60s while receiving Social Security may not be as beneficial as deferring benefits entirely.

A second case might be if you applied for Social Security before retirement to make sure you have enough money to support your lifestyle. If the market offers good returns in the early years of your retirement, you can suspend your benefits, accumulate the deferred retirement credits, and increase your withdrawals from your portfolio. This strategy may also allow you to do more tax planning than if you were still receiving Social Security.

Life circumstances change when you retire. That’s why it’s important to remain flexible and plan for a change in your retirement provision. These two social security options can be extremely useful in adding flexibility to your plans.