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The Pros and Cons of Suspending Your Social Security Benefits

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    Found a great article on Social Security suspension. Before or after retirement, some US citizens are faced with the choice of when they want their benefits to begin. Of course, there are both pros and cons to snagging your benefits early. If one takes their benefits early, they will have a boost in income early, yes, but they will experience smaller checks down the road.

    Financial planners are now telling their clients to hold off on taking their benefits, waiting as long as possible. The longer they wait = the bigger the payout.

    For those who are wondering what happens if one chooses to claim their check early, then changes their mind, do not despair. The Social Security Administration put in a provision that aids in such a situation. However, there are a few stipulations to doing this. You must be at retirement age, although, you cannot suspend benefits if you are over 70. Benefits are paid a month out, so more than likely, one more check will squeeze through to your account even a month after suspension. Last but not least, benefits will automatically resume the month after you turn 70, assuming that you haven't already reinstated them.

    Choosing to suspend Social Security benefits will not impact the individual's Medicare benefits. Although, if someone's Medicare Part B premiums are coming directly from their Social Security check, they can expect to be billed directly to cover their future premiums.

    For those receiving Supplemental Security Income benefits that choose to suspend their Social Security checks, they will also become ineligible for future SSI checks as well.

    Please, feel free to chime in on this one.

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    I guess this really comes down to how long you want to (or can) work before you start relying on your SS benefits to live off of. If you are able to work later in life, and especially if you make enough income to support yourself, I would hold off on receiving benefits until you actually need them, so the monthly payout is as high as possible.

    Doubly so if you also have a separate retirement account or pension plan of some kind. If money isn't an issue though, I suppose it won't matter much.

    Anyone have direct experience with this find it beneficial to start taking your SS benefits the first day you can? Or do you agree it's best to suspend for a few years so the monthly builds, unless you are financially unable to do so?

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    More than likely, the truth lies in the situation. There is a reason why these options exist. I'm sure there are those who have to take their SS early. A number of situations could call for such a thing, such as being let go early from a job, illness, etc.