Social Security
If a person defers his Social Security past full retirement age to increase future payments by 8% then becomes ill, prior to age 70.
Can they request a lump sum payment going back to full retirement age, then start receiving payments at that level?
Frank Dogger
Permalink Submitted by Alan - IRA critic on Fri, 2019-03-22 15:19
The maximum number of months the person can go back is 6, or to the FRA if that is less than 6 months. The lump sum is what the person would have received if benefits were originally effective at that time and the future benefit is reduced accordingly. That will also reduce a spouse’s survivor benefit if the person is married and has the higher SS benefit.
Permalink Submitted by Frank Dogger on Fri, 2019-03-22 16:52
So, you can take the lump sum, as long as you are willing to take the benefit that would have been paid at full retirement?Frank
Permalink Submitted by Alan - IRA critic on Fri, 2019-03-22 18:39
Yes. Note that the delayed payment benefit would have been 8% per year, not 8% total.