Today’s Social Security column addresses questions about increasing benefit rates after filing early, when a person can qualify for survivor’s benefits and getting SSA to process a suspension request. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc.
See more Ask Larry answers here.
Have Social Security questions of your own you’d like answered? Ask Larry about Social Security here.
Can I Increase My Social Security Retirement Benefit Rate?
Hi Larry, I filled for retirement benefits at 62 for personal and family reasons. I’m only receiving a small benefit because I filed so early. Is there any way to receive more or am I stranded at this amount indefinitely. Thanks, Owen
Hi Owen, If you’ve been receiving benefits for less than roughly a year, you could potentially withdraw your application and then reapply for benefits later at a higher monthly rate. However, you’d then be required to repay all of the benefits you’ve received so far.
Otherwise, there are basically only three ways to increase your monthly Social Security retirement benefit rate. Two of those would involve returning to work. Social Security retirement benefits are based on an average of a person’s highest 35 years of Social Security covered wage-indexed earnings, so if you work and replace one or more of those years with higher earnings years then your benefit rate would go up.
Furthermore, if you return to work prior to your full retirement age (FRA) and if your benefits are withheld because you earn more than the Social Security earnings test exempt amount, your benefit rate would increase at your FRA to reflect the fact that your earnings prevented you from receiving some of your pre-FRA benefits.
Thirdly, you could voluntarily suspend your benefits between FRA and age 70 in order to earn delayed retirement credits (DRCs). DRCs raise your monthly benefit rate by 2/3rds of 1% for each month that your benefits are suspended.
You don’t mention a marital history, so I don’t know if you could potentially be eligible for any spousal or survivor benefits. may want to consider using my company’s software — Maximize My Social Security or MaxiFi Planner — to ensure your household receives the highest lifetime benefits. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry
When Do I Qualify For Survivor Benefits?
Hi Larry, I’m 61 and I was born in 1960. My husband died September in 2010. When do I qualify for or when should I apply for survivor benefits. Thanks, Kim
Hi Kim, I’m sorry for your loss. You’re already old enough to claim reduced widow’s benefits, but whether or not you should is another matter. Until you reach full retirement age (FRA), there is a limit on how much you can earn and still be paid benefits.
So whether or not you’re working and how much you’ll be earning is a key part of the equation. Another important factor is whether or not you’re eligible for benefits on your own account, and how much your own benefit would be in relation to your survivor rate.
Also, if your husband collected reduced Social Security retirement benefits prior to his death, that could alter your optimal strategy. Normally you would want to start out drawing the lower benefit rate first and then switch to the higher benefit rate when it reaches its highest potential rate. Best, Larry
How Do We Get Social Security To Process My Brother’s Voluntary Suspension Request?
Hi Larry, My brother began Social Security benefits at age 63. He reaches his FRA next January. He wants to suspend these benefits until 70 to receive delayed retirement credits in the interim. Two SSA employees have told us he cannot do this, which I’m confident is wrong, one after talking to her manager. How do we get past this roadblock? Thanks, James
Hi James, Your brother can request voluntary suspension of his benefits, so the employees he’s spoken to are mistaken. Your brother could keep calling Social Security until he reaches an employee who knows what they are talking about or he could submit a written and signed request to Social Security on form SSA-795. I would recommend mailing it to his servicing office, and you can find their address using Social Security’s office locator. If your brother wants to suspend his benefits in January, he’ll need to submit his request no later than December.
Requests for voluntary suspension aren’t required to be in writing, but as you’ve discovered there are a lot of poorly trained Social Security employees. Submitting his request in writing should at least leave a paper trail. Best, Larry