This Social Security Filing Mistake Can Be Really Hard to Fix

Retirees can choose from a number of different Social Security filing ages. And there are a few significant ones to know about:

• Age 62 is the earliest age to file for Social Security.
• Age 67 is full retirement age (FRA) for retirees born in 1960 or after, and it’s when you can collect Social Security without a reduction in benefits.
• Age 70 is when you stop getting credit for a delayed claim.

Financial experts often urge retirees to wait until age 67, or FRA, to claim Social Security since it avoids a reduction in benefits. And for retirees with large expenses or limited savings, delaying Social Security past FRA for boosted benefits often makes sense. Those benefits can grow 8% per year past FRA until age 70.

However, a lot of people end up claiming Social Security at 62 because it allows them to get their benefits as soon as possible. This can be helpful for people who are struggling to stay in the workforce. 

Filing for Social Security at 62 results in a 30% reduction in benefits compared to filing at 67. This means that someone eligible for $2,000 a month at age 67 gets only $1,400 a month at 62. And that $1,400 benefit stays in place for life, not accounting for cost-of-living adjustments.

If you claimed Social Security at 62, you may be regretting that decision. The good news is that there may be a way to fix it. However, amending that mistake may be easier said than done.

How to fix an early Social Security claim

If you file for Social Security early and realize that was the wrong decision, you’re not automatically stuck with a reduced benefit for life. 

Each Social Security claimant is allowed one do-over in their lifetime. If you withdraw your application for benefits within a year of approval, you may be able to file for Social Security again at a later point in time when your benefits won’t be reduced.

However, there’s a catch. To take advantage of this do-over, you must also repay all of the Social Security benefits you received to date. If you’ve already spent some or all of the money, that may prove difficult.

This is why an early Social Security claim can be quite hard to fix. Even though the option to get a do-over exists, if you don’t exercise it right away, you may have a hard time coming up with the money.

If you realize upon getting your first monthly Social Security check that filing early was a mistake, you can immediately try to find a job, withdraw your application for benefits, repay that one check, and file at a later age. But if you realize your mistake six or eight months later, you may be at a point where coming up with the money to repay the benefits you received is difficult or even impossible.

Try to choose the right filing age from the start

Even though it is possible to undo a Social Security claim, it can be really hard to find the money to repay the benefits you received. This is why it’s better to just file at the right age from the start.

If you’re thinking of filing for Social Security at 62 or at another point before FRA, figure out how much of a reduction in benefits that will lead to. Seeing that number may help you realize that you should wait until FRA or even beyond to claim Social Security.