Have you started to regret when you decided to begin receiving Social Security benefits? There are a number of factors that could make you reconsider, such as:
In short, the answer to the question is yes. Can you pause Social Security and resume later? But there are some caveats. We’ll go over the two choices available to you from the Social Security Administration if you’re thinking twice about when to start receiving Social Security benefits.
Yes, you can stop receiving Social Security retirement benefits and return to work. However, there are specific conditions and procedures you must follow. This article will guide you through the process of stopping your benefits and returning to work while maximizing your future benefits.
Eligibility for Stopping Social Security Benefits
To be eligible to stop receiving Social Security retirement benefits, you must meet the following criteria:
- You must have filed for benefits within the past 12 months. This means you cannot stop receiving benefits if you have been receiving them for more than a year.
- You must repay all benefits you have received. This includes any payments made to your spouse or children.
- You must consent in writing to the withdrawal of benefits. This applies to both you and your spouse, if applicable.
How to Stop Receiving Social Security Benefits
To stop receiving Social Security benefits, you must complete and submit Form SSA-521, Withdrawal of Application for Benefits. You can download the form from the Social Security Administration (SSA) website or obtain a copy from your local Social Security office.
Once you have completed the form, you can submit it in person at your local Social Security office or mail it to the address listed on the form.
What Happens After You Stop Receiving Benefits
Once you stop receiving Social Security benefits, your earnings will no longer be subject to the annual earnings limit. This means you can earn as much as you want without your benefits being reduced.
However, it is important to note that you will not earn any additional Social Security credits while you are not receiving benefits. This means your future benefits will not be as high as they would have been if you had continued receiving benefits.
Repaying Your Benefits
You must repay all Social Security benefits you have received, including any payments made to your spouse or children. You can make the repayment in a lump sum or in installments.
If you choose to make the repayment in installments, the SSA will deduct the amount from your future Social Security benefits.
Voluntary Suspension of Benefits
If you are not eligible to stop receiving benefits because you have been receiving them for more than a year, you can still voluntarily suspend your benefits. This will allow you to return to work without having to repay your benefits.
To voluntarily suspend your benefits, you must contact the SSA and request a suspension. You can do this by calling the SSA at 1-800-772-1213 or visiting your local Social Security office.
Impact on Future Benefits
When you reach full retirement age, you can resume receiving Social Security benefits. However, your future benefits will be reduced because you did not earn any additional Social Security credits while you were not receiving benefits.
The amount of the reduction will depend on how long you stopped receiving benefits. For example, if you stopped receiving benefits for one year, your benefits will be reduced by 1/12th for each month you did not receive benefits.
Considerations Before Stopping Benefits
Before you decide to stop receiving Social Security benefits and return to work, it is important to consider the following factors:
- Your financial situation. Can you afford to live without your Social Security benefits?
- Your health. Are you healthy enough to work?
- Your job prospects. Are you likely to be able to find a job that will pay you enough to support yourself?
- The impact on your future benefits. How much will your future benefits be reduced if you stop receiving benefits now?
Stopping Social Security benefits and returning to work can be a complex decision. It is important to carefully consider all of the factors involved before making a decision. If you are considering this option, it is a good idea to speak with a financial advisor or Social Security representative to discuss your options.
Frequently Asked Questions
Can I stop receiving Social Security benefits if I am not yet at full retirement age?
Yes, you can stop receiving Social Security benefits if you are not yet at full retirement age. However, you will not be able to earn any additional Social Security credits while you are not receiving benefits. This means your future benefits will be reduced.
Can I stop receiving Social Security benefits if I am receiving disability benefits?
No, you cannot stop receiving Social Security disability benefits. If you return to work and earn more than a certain amount, your disability benefits will be reduced or stopped.
Can I stop receiving Social Security benefits if I am receiving Supplemental Security Income (SSI)?
No, you cannot stop receiving SSI benefits. If you return to work and earn more than a certain amount, your SSI benefits will be reduced or stopped.
Can I stop receiving Social Security benefits if I am living outside the United States?
Yes, you can stop receiving Social Security benefits if you are living outside the United States. However, you may need to provide the SSA with additional documentation to prove that you are still eligible for benefits.
Can I stop receiving Social Security benefits if I am incarcerated?
No, you cannot stop receiving Social Security benefits if you are incarcerated. Your benefits will continue to be paid to you while you are in prison.
Can I stop receiving Social Security benefits if I am a non-citizen?
Yes, you can stop receiving Social Security benefits if you are a non-citizen. However, you must meet certain eligibility requirements, such as having worked in the United States for a certain number of years.
Can I stop receiving Social Security benefits if I am a felon?
Yes, you can stop receiving Social Security benefits if you are a felon. However, your benefits may be reduced or stopped if you are convicted of certain crimes.
Can I stop receiving Social Security benefits if I am a fugitive?
No, you cannot stop receiving Social Security benefits if you are a fugitive. Your benefits will be suspended until you are apprehended.
Can I stop receiving Social Security benefits if I am deceased?
No, you cannot stop receiving Social Security benefits if you are deceased. Your benefits will continue to be paid to your beneficiaries.
Can I stop receiving Social Security benefits if I am bankrupt?
No, you cannot stop receiving Social Security benefits if you are bankrupt. Your benefits are exempt from bankruptcy proceedings.
Can I stop receiving Social Security benefits if I am a victim of domestic violence?
Yes, you can stop receiving Social Security benefits if you are a victim of domestic violence. The SSA has a special program that allows victims of domestic violence to stop receiving benefits without having to repay them.
Can I stop receiving Social Security benefits if I am a member of the military?
Yes, you can stop receiving Social Security benefits if you are a member of the military. However, your benefits will be suspended while you are on active duty.
Can I stop receiving Social Security benefits if I am a student?
Yes, you can stop receiving Social Security benefits if you are a student. However, your benefits will be suspended while you are enrolled in school full-time.
Can I stop receiving Social Security benefits if I am a stay-at-home parent?
Yes, you can stop receiving Social Security benefits if you are a stay-at-home parent. However, you will not earn any additional Social Security credits while you are not working. This means your future benefits will be reduced.
Can I stop receiving Social Security benefits if I am a self-employed person?
Yes, you can stop receiving Social Security benefits if you are a self-employed person. However, you must continue to pay self-employment taxes even if you are not receiving benefits.
Can I stop receiving Social Security benefits if I am a seasonal worker?
Yes, you can stop receiving Social Security benefits if you are a seasonal worker. However, your benefits will be suspended during the off-season.
Can I stop receiving Social Security benefits if I am a part-time worker?
Yes, you can stop receiving Social Security benefits if you are a part-time worker. However, your benefits will be reduced based on your earnings.
Can I stop receiving Social Security benefits if I am a temporary worker?
Yes, you can stop receiving Social Security benefits if you are a temporary worker. However, your benefits will be suspended while you are not working.
Can I stop receiving Social Security benefits if I am a contract worker?
Yes, you can stop receiving Social Security benefits if you are a contract worker. However, you must continue to pay self-employment taxes even if you are not receiving benefits.
Can I stop receiving Social Security benefits if I am an independent contractor?
Yes, you can stop receiving Social Security benefits if you are an independent contractor. However, you must continue to pay self-employment taxes even if you are not receiving benefits.
Can I stop receiving Social Security benefits if I am a freelancer?
Yes, you can stop receiving Social Security benefits if you are a freelancer. However, you must continue to pay self-employment taxes even if you are not receiving benefits.
Can I stop receiving Social Security benefits if I am a gig worker?
Yes, you can stop receiving Social Security benefits if you are a gig worker. However, you must continue to pay self-employment taxes even if you are not receiving benefits.
Can I stop receiving Social Security benefits if I am a rideshare driver?
Yes, you can stop receiving Social Security benefits if you are a rideshare driver. However, you must continue to pay self-employment taxes even if you are not receiving benefits.
Can I stop receiving Social Security benefits if I am a delivery driver?
Yes, you can stop receiving Social Security benefits if you are a delivery driver. However, you must continue to pay self-employment taxes even if you are not receiving benefits.
Can I stop receiving Social Security benefits if I am
Option 1: Withdrawal of benefits
Withdrawal of benefits is available only in the first 12 months after you become eligible for Social Security benefits. That means this option is available only before youve reached full retirement age. It is a one-time option; you cannot do it again later.
Furthermore, you will be required to reimburse the full amount that you were paid. Consider this procedure as a genuine Social Security reform. It should be noted that upon withdrawing your benefits, all benefits received by your family members—including ex-spouses who reside outside of your home—will cease to be paid. It will actually seem as though you never applied for benefits.
To estimate what you will be required to repay, figure out how much you have already received in benefits, including any benefits paid to your spouse or children and withholdings for Medicare premiums.
Redrawing your benefits may be advantageous if you find employment or a new source of income shortly after retirement, especially if you began receiving benefits at a relatively young age. You will be older and receive a higher monthly benefit the next time you apply, which can help you make the most of Social Security. As an example, let’s say that for a 62-year-old who was born after 1960, the retirement benefit would be 20% less if he retired at age 62 as opposed to saving until he reached retirement age 67. Furthermore, if they held off until after 1970, they would receive 20124% of their entire retirement age benefit. The discrepancy in your benefit between 2070% and 1224 percent can amount to hundreds of dollars per month. If you can sustain yourself without Social Security until you’re older, then opting for a Social Security do-over can be a prudent financial decision.
However, keep in mind that if you decide to withdraw benefits, you only have 60 days to change your mind and decide that you must continue receiving the benefits. Therefore, you should be certain of your choice. If you don’t cancel on time, you’ll have to reapply for benefits, which could take some time and result in missed payments.
Options for stopping & restarting Social Security
There are two options to think about if you want to stop receiving Social Security benefits now and resume later: withdrawing your benefits or suspending them.