Three Little-Known Social Security Rules You Need to Know

Social Security has a few twists that you'll want to know about.

Discover the Hidden Twists of Social Security: Boost Your Benefits with These Lesser-Known Rules

Social Security might seem straightforward: work, retire, collect benefits. However, it's more complex than it appears. Understanding these nuances can help you maximize your earnings. Here are three lesser-known Social Security rules you should be aware of.

1. The Social Security "Do-Over" Option**

Many believe that once they start receiving Social Security benefits before their full retirement age (FRA), the decision is irreversible. However, the Social Security Administration (SSA) offers a "do-over" option. Suppose you start receiving benefits at age 62 but then decide to return to full-time work. You can withdraw your benefits application within 12 months of becoming eligible, provided you repay all benefits received. This option is available only once, so be sure before opting to cancel your benefits application.

**2. Early Retirement and Working: The Good and Bad News**

Retiring early and continuing to work can impact your Social Security benefits. If you earn above a certain threshold, SSA will reduce your benefits. In 2024, for those under FRA, benefits are reduced by $1 for every $2 earned above $22,320. For those reaching FRA, benefits are reduced by $1 for every $3 earned above $59,520. The good news is that these reductions are temporary. Once you reach FRA, SSA recalculates your benefits to account for the amounts previously withheld. Additionally, if your earnings while working exceed earlier earnings, SSA recalculates your benefits based on your highest-earning 35 years.

**3. Delaying Benefits Won't Boost Spousal Benefits**

While delaying your Social Security benefits past FRA increases your individual benefit up to age 70, it doesn't enhance your spouse's benefits if they are based on your earnings history. Spousal benefits are calculated based on the higher-earning spouse's primary insurance amount at FRA. Delaying benefits does not increase this amount for the spouse, although it can increase survivor benefits if the higher-earning spouse passes away.

Understanding these rules can help you navigate the complexities of Social Security and potentially increase your retirement income. 

**Maximize Your Social Security Income**

Many retirees overlook a significant Social Security bonus. Knowing how to leverage little-known strategies could boost your annual income by as much as $22,924. To learn more about maximizing your Social Security benefits, click here to explore these strategies and ensure a financially secure retirement.

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