Can you get a bulk payment from Social Security?
YES you can under certain circumstances. First there are a few things to review.
What is your Full Retirement Age? Full Retirement Age is when Social Security deems you eligible for your full Social Security benefit. It used to be 65 for everybody, but the law changed in 1983 and now it depends on the year you were born.
|1955||66 and 2 months|
|1956||66 and 4 months|
|1957||66 and 6 months|
|1958||66 and 8 months|
|1959||66 and 10 months|
|1960 or later||67|
When can I apply for Social Security benefits? The earliest you can apply for benefits is age 62. If you apply at that age, your payment amount will be reduced by about 30% for the rest of your life.
Apply for benefits at Full Retirement Age. You can now begin receiving your monthly payments OR Suspend Benefits until a later time.
If you suspend your benefits at FRA, you receive an 8% increase in your payment for each year you wait until age 70 for a total of 32% for life. These are called Delayed Retirement Credits.
Should you decide between age 66 and age 70 that you would like to change your decision about receiving your benefit, you can get a bulk payment for the amount you missed between your Full Retirement Age and the current date.
If you do this you forfeit the 8% per year increase you would have received by waiting until age 70, but you do collect any monies you missed since applying.
Often people feel they want to wait until age 70, but fear they risk losing out on benefits if their life circumstances change. With this provision, you can collect back payments should you choose.
If your payment at Full Retirement Age was to be $2,000 per month, and you are 68 now, you can receive a bulk payment of $48,000. That’s a pretty nice payment, and it’s good to know that if you do wait and things change, you are not giving up that money.