File and Suspend, but changed your mind?

December 08, 2014

A topic generating a lot of buzz for some time now is the “File & Suspend” option that is available to those claiming benefits.  This option allows a retiree at their full retirement age to file for benefits and then immediately suspend the benefits until his/her age 70 earning delayed credits and a maximum potential benefit.  This option is sometimes used so a spouse can file for one’s benefits while you continue to work.  But what happens if that person becomes ill and wants their benefits before age 70?  They have several options.


1.        You can begin your benefits at the date you decide you can no longer delay.  You can then get the delayed credits up to this point and continue to draw a higher amount based upon the years of delayed filing.

2.       In the case you need more financially than just beginning payments early and could use the past payments immediately, you can ask Social Security to pay you benefits back to the FRA when you filed & Suspended.  This option would be for someone who didn’t have a concern of outliving their money any longer and/or needed immediate financial relief that these benefits could provide.  Going forward you would simply draw your full retirement age PIA.




   Brandon M. Smith, LPL Investment Advisor Representative
               Lifetime Planning, Inc.
               Securities offered through LPL Financial, member FINRA/SIPC