| Did you know that it's possible to increase your | | | | the more you'll pay back and the less time you'll |
| monthly retirement cash from Social Security by | | | | have to enjoy the increased benefits. Aim for age |
| as much as $1,033 per month? No? Well, don't | | | | 70, if you can. |
| feel alone. | | | | Plan Ahead: The key to making this work is |
| There are over 32 million retired Americans. | | | | having the money to pay back when the time |
| Guess how many took advantage of this amazing | | | | comes. Some people see this as a strategy. You |
| opportunity last year? 10 million? 1 million? 100 | | | | take the money starting at 62, stash it where it'll |
| thousand? 10 thousand? Surely one thousand did. | | | | earn interest for the next seven or eight years, |
| How about 230? That's two hundred thirty people | | | | then pay it back. It's an interest-free loan from |
| out of over 32 million. That's less than 0.0007%. | | | | the government made even more attractive |
| "How is that possible?" you ask. | | | | because the amount you pay back isn't even |
| Well, to begin with, more than 99% don't even | | | | adjusted for inflation. But, waste the money or |
| know about it. The Social Security Administration | | | | lose it in a risky investment,and you're stuck with |
| (SSA) doesn't publicize this opportunity. SSA | | | | the lower benefit for life. |
| representatives are simply not authorized to | | | | Weigh the Risks: The main risk, says Dr. Laurence |
| recommend retirement strategies or to give you | | | | Kotlikoff, economics professor at Boston |
| any kind of personalized advice. | | | | University and co-author of Spend 'Til the End, is |
| I'm on Social Security myself. I had never heard | | | | that the government will close this loophole, and |
| of this either. I'm not a Social Security expert. Nor | | | | you'll have already taken the lower benefit. |
| am I a lawyer, a CPA, or a financial advisor. I am, | | | | However, he says that as of now, he hasn't seen |
| however, an avid reader of business and financial | | | | any indication of that occurring; in fact, the SSA |
| magazines and the like. | | | | seems very willing to accept the Form 521. |
| So, I thought I would research this subject and | | | | Go to Under Forms and Publications find Form |
| share my findings with anyone who might be | | | | Number 521 "Request for Withdrawal of |
| interested so they could follow up with the SSA | | | | Application". Save to your computer. It's that |
| to see if they can qualify. | | | | easy. |
| Here are the details gleaned from my readings. | | | | Incredibly, Form 521 has only one page to fill out |
| The Basics: Your yearly benefit increases by | | | | to potentially increase you monthly retirement |
| about 8 percent for every year you postpone | | | | cash from Social Security by up to $1,033. |
| taking your SS after age 62. That's on top of the | | | | Of course, if more retirees started taking |
| SSA adjustment each year for cost of living. | | | | advantage of this loop hole, the government |
| Knowing this, it's easy to see why the general | | | | might change the law. Otherwise, it would cost |
| advice is to wait to collect--if you are financially | | | | billions to meet all the requests. However, once |
| able to. | | | | you're in, you're in for life. Estimates are that over |
| If you have already begun taking your benefits, | | | | 10 million U.S. retirees could benefit. |
| you can file a Form 521 (Request for Withdrawal | | | | Another risk is not living as long as you expect, in |
| of Application) and pay back the benefits you | | | | which case you will pay back the money only to |
| have already received-without interest. You'll then | | | | receive the higher benefit for just a year or two |
| be able to reapply and receive larger benefits as if | | | | in return. These are both scenarios to consider |
| you had waited all along. | | | | carefully. |
| Time It Right: According to Pam Villarreal, a policy | | | | Running the numbers before filing can help, |
| analyst with the National Center of Policy Analysis, | | | | particularly if you have to decide between taking |
| "There is kind of an optimal age. If you take | | | | spousal benefits and your own. The SSA has |
| early-retirement benefits at 62 and then paid | | | | calculators at that can help. |
| them back at 70, you're going to increase your | | | | Hopefully you've found this informative and helpful. |
| living standard far more than if you took | | | | You're now more knowledgeable than most SSA |
| retirement benefits at 62 and paid them back at | | | | employees. Best wishes in your retirement |
| 76, because your life expectancy is going to be | | | | whatever actions you decide to take. |
| shorter." Also, the longer you wait to file the 521, | | | | |