A Guide to Two Strategic Do-Overs for Increased Income: Jeremy Keil, owner of Keil Financial Partners and an advisor, is an expert in helping his clients get the most out of their Social Security payments. One area he really knows a lot about is Social Security strategies, such as Social Security do-overs.
People usually think that Americans won’t get a second chance to choose when to start receiving Social Security benefits. However, Keil, a retirement-focused advisor in the Milwaukee area who manages $125 million, said that clients can do two things that can end up getting them much higher monthly payments: they can suspend their benefits until a later date or withdraw the benefit.
A Guide to Two Strategic Do-Overs for Increased Income:
A client of Keil’s recently asked him where he could put the $25,000 that he got from his mother to get the best return.
It had been about 10 months since he had applied for Social Security. He was now getting $2,500 a month from it. We took back the payment, gave him back the $25,000, and had him apply again. He got an extra almost $200 a month the following month, and that money will keep coming in as long as he or his wife lives. She said, “Not a bad way to invest mom’s inheritance.” Keil’s clients are mostly 64 years old.
In another case, Keil had a client who was getting Social Security Disability Insurance. When the client turned 67, the program moved them immediately to the retirement benefit. Keil said, “We did the math and showed him that he and especially his younger spouse would be better off 90% of the time by delaying his retirement benefit, taking it later (most likely at age 70), and taking money out of his taxable traditional IRA to live on now.”
Keil set up the client and his wife “for a much more stable, lower-tax Social Security benefit in the future.” He also increased the client’s monthly benefit in the future.
One easy way for people to get the most out of their Social Security payments is to wait until they are 70 years old and file, when their monthly benefit is at its highest.
According to Keil, who has a National Social Security Advisor Certificate, clients who have already filed can sometimes still get up to an 8% yearly increase in benefits by asking for a simple “do-over.” This could mean either suspending or withdrawing their benefits.
Keil said, “I just think that Social Security maximization is something you should always think about, even if the client has already filed.”
SSI Income Limits: What the income limit for Social Security?
How to Get In?
Benefits can only be stopped if the client applied for them early and is now older than the full retirement age but younger than 70. But, according to the Social Security Administration, a client can only take their benefits back if they have been getting them for less than 12 months and have never asked for money back before.
People who are eligible to stop getting Social Security payments can make 0.666% in delayed retirement credits every month they stop getting them, or 8% a year, plus cost-of-living adjustments.
