Savvy Senior: Can you stop and restart Social Security benefits?

Can I stop claiming Social Security and start again later to get a higher payout? I recently received a nice unexpected inheritance and don’t need the Social Security money right now. If possible, I would stop claiming and start again at age 70.

Yes, there are actually two different strategies that allow welfare recipients to reverse their claim decision. However, to be eligible, you must meet certain conditions. Here’s what you should know:

If you are receiving benefits in the first year, you can request a “withdrawal of benefits” from Social Security. Social Security will allow you to withdraw your original claim for pension benefits, but you must do so within 12 months of the date you first applied for your benefits.

If you choose to cash out, Social Security will treat it as if you never applied for benefits. But there’s a catch. You’ll have to pay back every dollar you received, including amounts from any family members who received benefits based on your earnings records, such as your spouse or minor child, along with any money withheld from your Social Security payments — for example, to pay your Medicare premiums.

You can only withdraw your application for Social Security benefits once, but you can reapply for benefits later when the monthly amount is higher.

To withdraw your benefits, fill out Social Security Form SSA-521 (see ssa.gov/forms/ssa-521.pdf) and mail the completed form to your local Social Security office.

If you change your mind, you have 60 days from the date Social Security approves your payment to cancel your application.

However, if you miss the 12-month deadline or it’s not financially possible to repay your Social Security benefits, there is another opportunity to reapply. However, you must be of full retirement age or older to qualify.

The full retirement age is 66 years and 6 months for those born in 1957, but increases in two-month increments each year to 67 for those born in 1960 and later. To find your full retirement age, go to SSA.gov/benefits/retirement/planner/ageincrease.html.

At that point, you can “pause” your Social Security benefits, and the good news is that you won’t have to pay anything back. But the bad news is that your monthly Social Security benefits will stop, and so will any dependent family members (except for a divorced spouse).

During the suspension, you will also be credited with delayed pension credits, which increase your monthly retirement pension by two-thirds of 1 percent for each month suspended (or 8 percent for each year suspended) until age 70.

At age 70, suspended benefits would automatically resume. Alternatively, you can choose to resume receiving Social Security benefits earlier, but in that case, you would only receive delayed pension credits for the period of suspension of benefits.

You can request a suspension of Social Security benefits by calling (800-722-1213), writing, or in person at your local Social Security office. The suspension begins one month after you submit your request.

Also note that if you are enrolled in Medicare, stopping or suspending your benefits will have additional consequences.

Typically, Medicare Part B premiums ($174.70 per month in 2024 for most beneficiaries) are deducted directly from monthly Social Security payments.

If you cancel or suspend your benefits and are enrolled in Medicare Part B, you will receive a quarterly bill from Medicare. You have the option to pay electronically or by mail. Or you can enroll in Medicare’s Easy Pay, which automatically deducts your premium payments from your savings or checking account each month.

Send your questions to: Savvy Senior, PO Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today Show and author of The Savvy Senior.