The Social Security Administration has eliminated the "file and suspend" benefit (also called the social security do-over) that we previously wrote about in March 2009. The do-over benefit had allowed retirees to make money by retiring early, starting benefits at the earliest age, age 62. Then, upon reaching full retirement age (around age 66, depending on birth date), withdrawing from the social security system by repaying the benefits received without interest. Then the retiree would re-file and receive the full social security benefit based on their current age (e.g. age 66). There was no reason for the Social Security Administration to ever allow this benefit amounting to an interest free loan and manipulation of the system. The Social Security Administration finally figured this out.
Immediately, if a retiree applies to become a recipient of Social Security benefits, he has twelve months from the date of the first payment to withdraw the application and repay entitlements received. This can be done one time, in other words, to correct a mistake.
Very few retirees actually used this social security loophole ( I would guess that few knew about it or understood it or had the repayment funds to enjoy it). During 2009 only 1,015 of these 'withdrawal applications' were filed. The number dropped in 2010 as by the end of June only 345 had applied to repay and withdraw.
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Most people think that they get the largest payment automatically. Not true. You need to make choices when you apply and if you make the incorrect choice, you get a smaller check -- for life. Even if you already receive Social Security Benefits, you may be able to change your selections.
My dad just applied for social security, thanks for the info.
Very few people actually used this social security loophole has it is complicated...
Thanks for the info.My uncle was about to apply for social security but the whole process was too complicated for him. Hopefully it will be less complicated soon.
Well not a good thing that people would manipulate the system like this... social security is in bad enough shape as it is! I hope it's still around when I am that age myself...
Loop holes are caused because of government lawyers (all) continue to write laws and change to fix their schemes. The Social Security System has no financial problem, its our government who has borrowed for other programs and not paid their debt back.They want to find away to keep from paying the retirement fund back to retirees.
"There was no reason for the Social Security Administration to ever allow this benefit amounting to an interest free loan and manipulation of the system. "
Government should never had dipped into the social security system in the first place. STOP OVERSPENDING NOW, before we lose this country.
Pay attention to your politcal representation, Dem and Reps and demand budget cuts.
The “file and suspend” benefit removal is just the beginning. Obamacare.
It is these kind of loopholes that drain government funds. I think those who abuse this loopholes should be ashamed for taking away funds that could have been used for something else that can help the people.
the social security system in the first place. Very few people actually used this social security loophole has it is complicated…
...Very few retirees actually used this social security loophole ( I would guess that few knew about it or understood it...
You can count me in that bunch. This loophole was probably created when some retiree's who started taking benefits went on to claim that (Gasp!!) had they known the benefits would have been higher had they waited till 65 they never would have started at 62. Glad they fixed this.
My grandparents are about to apply for social security. Thanks for sharing this was an interesting read 🙂
There should be more regulation of social security benefits not from a fraud of loophole perspective, but from a beneficiary of the system, plus cut the spending which is tanking the dollar. Anything to do with government is always complex to keep all confused.
Nice info....
Many people actually used this social security loophole has it is complicated...
This is importan post for my experience about techno....
I try to explain how important social security is to people but they just ignore me hah.
Its sad to hear that something is over,...but very few people actually used this, becouse social security loophole is complicated… my mom tried, she didnt get it....
You really can't rely on social security for anything. I knew that since I was old enough to know what social security was. It just doesn't make sense. The whole program should have been abolished long ago.
Make your own money, save it, and figure out a way to keep that money working for you and more money coming in, even after you're done working for the rest of your life.
Working jobs and relying on social security is a thing of the past. Childsplay.
Hi,
In my opinion, within this dcade the retirement age will reach 70, social security benefits will be drastically reduced and anybody hoping to recieve them will have to go through a tough means test.
With people living longer what choice do we have?
Holly
good info..
so many people actually used this social security loophole has it is complicated… and it's true..
in my country.. there's no security loophole..
the retirement is for retirement, why should we still looking for a job?
Few people actually used this social security loophole has it is complicated
I have read whole post and it is quite interesting, and i come to the point after read this .. social security is a nice step for senior citizens... because life is uncertain. so at least when human got to weak to secure themselves should be socially secured about their rights.
My grandparents are about to apply for social security. Thanks for sharing this was an interesting read
Thanks for giving suggestion to us regarding the Social Security. mostly people are not aware about it and some doesn't want to use it because of its complicated structure. I really hope that your blog will help people to take the benefit from it.
I have tried to download &/or otherwise request most of your offers but not a single request would go through. I have checked all the info I submitted & it is all correct. Perhaps YOUR info on me is incorrect! How can I GET the info you offer?
if everyone paid their fair share we would not have to worry about these programs loopholes for the rich and big business who pay peanuts or nothing help[ the middle class out