When to Claim Social Security - Part 2

When to Claim Social Security - Part 2

In Part 1, we looked at some different options regarding when to claim Social Security. We are going to conclude with some examples of best practices.

For individuals who elected Social Security benefits at 62 and are rethinking their decision, there are corrective strategies they might consider. They can “restart the clock” by paying back all Social Security benefits received without interest or penalties then reapply for Social Security benefits.

Strategy #1 - Paying back all Social Security benefits received without interest or penalties then reapply for Social Security benefits.

For example, an individual who receives annual benefits of $18,800 from commencing benefits at age 62 paid back approximately $75,200 at age 66; he or she would begin receiving a new benefit of $25,800. That is comparable to buying an inflation adjusted single premium immediate annuity paying a guaranteed annual payment of $7,000 ($25,800– $18,800) for $75,200. It would take over $145,000 to purchase an inflation protected immediate annuity with a high grade insurance company to receive comparable payments.

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If you have questions about Social Security and want to learn more about how the timing of elections could affect you and your spouse, contact Coyle Financial Counsel. We can help you examine the various options. Please call Coyle Financial Counsel or send us an email:

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Watch for more information on Social Security in upcoming editions of Inspired Insights.