Voluntary Suspension of Social Security: The ‘Undo’ Button for Early Claimers
Voluntary Suspension of Social Security: The “Undo” Button for Early Claimers
CORE INSIGHTS
- The “Do-Over”: If you claimed Social Security early and regret the reduced checks, you can suspend benefits at Full Retirement Age (FRA) to earn credits.
- The 8% Boost: For every year you suspend between FRA and 70, your future check grows by 8%. A 3-year pause yields a permanent 24% raise.
- Medicare Continues: Suspending cash payments does not stop Medicare coverage. You just have to pay premiums directly.
Many retirees claim early due to fear, only to regret it later. Voluntary Suspension is the hidden fix. It allows you to “stop the clock” at 67 and restart it at 70 with a significantly higher payout base.
Scenario: Claimed at 62 ($1,400).
Action: Suspend at 67 (FRA).
Growth: $1,400 x 1.24 (3 years of 8% growth).
Restart at 70: $1,736/mo (+Inflation).
What-If Scenario: The Late Windfall ($500k Inheritance)
| Strategy | Monthly Income | Annual Total |
|---|---|---|
| Keep Collecting | $1,500 (Fixed) | $18,000 |
| Suspend & Spend | $0 (3 Years) → $1,860 | $22,320 (for life) |
Visualizing the Benefit Boost
*Figure 1: Benefit Trajectory. The Suspension (Flat) leads to a permanent step-up (Green) at age 70.*
Strategic Action Steps
You cannot suspend before Full Retirement Age (e.g., 67). If you try early, it will be denied.
Submit a written request (Form CMS-40B) stating: “I wish to suspend benefits to earn delayed credits.”
Since your check stops, Part B premiums cannot be deducted. Set up “Medicare Easy Pay” to avoid losing coverage.
The Bottom Line: Who Should Choose What?
- Suspend: Healthy retirees (67-69) with cash savings who want to maximize longevity protection.
- Do Not Suspend: Retirees in poor health or those whose spouses rely on the spousal benefit.
Frequently Asked Questions
When can I suspend my benefits?
You can suspend starting at Full Retirement Age (FRA). Benefits restart automatically at age 70.
Does my spouse lose their benefit?
Yes. If you suspend, spousal benefits based on your record also stop. Divorced spousal benefits are usually unaffected.
How much does my benefit increase?
It grows 8% per year (delayed credits). Suspending for 3 years increases your check by 24% permanently.