The Lesser-Known Trick That Can Help You Undo a Bad Social Security Filing Decision

It’s a scenario many seniors have faced before. You claimed Social Security at 62 because you liked the idea of getting that money as soon as you could. Now, you’re looking at smaller monthly paychecks for life. And you’re overwhelmed with regret because it’s been hard to cover your expenses.

It’s not an unusual thing. For many years, 62 was the most popular age to claim Social Security since it meant not having to wait on benefits. But if you file for Social Security at 62, you could be looking at a pretty significant reduction in your monthly checks.

If your full retirement age (FRA) is 67 and you claim Social Security at 62, those benefits will be slashed by about 30%. For a $2,000 monthly check, you’re looking at $1,400 a month instead. In the course of your lifetime, that’s a lot less income to collect.

If you were impulsive in claiming Social Security at 62 and aren’t happy with the aftermath of that decision, the good news is that all isn’t lost. There’s a little-known trick that could help you lock in larger benefits, even if you already filed.

It may not be too late to get a second chance

You’ll typically hear that once you file for Social Security, the monthly benefit you lock in based on your claiming age is the amount you’re stuck with for life — not accounting for cost-of-living adjustments, of course. But there’s actually a do-over option many seniors don’t know about.

The do-over option is a one-time opportunity. It allows you to withdraw your application for Social Security benefits and file again at a later point in time. So if you claimed Social Security at 62 and aren’t happy, you could conceivably undo your claim and file again at FRA for larger checks each month instead.

Sounds like a good deal, right? Unfortunately, there is one catch.

To take advantage of Social Security’s do-over option, you need to repay all of the money in benefits you received. If you don’t have the money, you may be out of luck.

If you have savings to withdraw from or even home equity to tap, then repaying your benefits may be doable. But you only have 12 months from when your Social Security claim is approved to withdraw your benefits application and repay the money you received — however much it amounts to. So keep that timeline in mind as you explore your options.

It helps to know the rules

It’s natural to assume that you’re stuck with a reduced Social Security check indefinitely because you filed for benefits early. But if you act within 12 months and repay the money you received, you can undo that decision.

If you’re convinced you want a do-over, you can handle everything online by creating or logging into your Social Security account and filling out Form 521. You can also mail that form to your local Social Security field office. It’s a simple step that could result in larger monthly benefits — and less financial stress — for life.

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