3 Lesser-Known Social Security Rules You Should Be Aware Of

Many people have heard of Social Security and know that the program is designed to pay seniors benefits on a regular basis. You may even be familiar with a number of Social Security’s more well-known rules.

For example, the amount of money you’re eligible to receive from Social Security is dependent on your lifetime earnings. And you’re entitled to your full monthly benefit at a specific age, known as full retirement age (FRA), which hinges on your year of birth.

A Social Security application being filled out.

You may also be aware that you can sign up for Social Security as early as age 62 but that filing at that age will result in a reduced monthly benefit for life. Similarly, you might know that while Social Security and Medicare are related to some degree, you’re allowed to sign up for one without the other.

But some of Social Security’s many rules are a lot less obvious. Here are three you should read up on, as they could put more money in your pocket.

1. You can undo your filing if you regret your decision

As mentioned, you can sign up for Social Security at any age once you turn 62. But you won’t get your full monthly benefit until FRA arrives.

If you sign up for Social Security but regret your decision afterward, all isn’t lost, and you’re not automatically stuck with a reduced monthly benefit for life. That’s because the program gives all filers a single do-over in their lifetimes.

To take advantage of it, you’ll need to withdraw your application for Social Security within a year of starting benefits. You’ll also need to repay all of the money you collected from Social Security.

2. You can request a lump-sum payment for a delayed claim

There’s a financial benefit to delaying Social Security beyond FRA. For each year you do, up until age 70, your benefits will get a permanent boost.

If you forget to sign up for benefits by age 70, you could risk losing out on lifetime Social Security income. But if you remember shortly thereafter, you can avoid that scenario.

Social Security will pay you a lump sum of benefits on a retroactive basis, but only up to six months’ worth. So if you file for Social Security at age 70 1/2, you can request a retroactive payment dating back to your 70th birthday so you don’t end up losing out on any money. However, if you do the same at age 71, you could miss out on half a year of benefits (or more) that you were otherwise entitled to.

3. You can file for benefits, even if you never worked

We said earlier that your Social Security benefit in retirement is calculated based on your lifetime wages. If you never held down a job, you might assume that collecting Social Security won’t be possible. But you may be eligible for spousal benefits if you are or were married to someone who’s entitled to Social Security benefits of their own.

The rules of Social Security spousal benefits can be a little complicated. If you’re married, for example, you will have to wait until your spouse files for Social Security before you can sign up for spousal benefits.

While it’s possible to score a boosted Social Security benefit by delaying your filing, this only applies to a benefit based on your own earnings record. There’s no such thing as growing a spousal benefit, so once you reach FRA, you might as well sign up for yours.

Social Security is loaded with rules. Reading up on them may not be the most thrilling way to spend an afternoon, but the more you know, the more you’ll be able to take advantage of this important program.

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