This Social Security Loophole Could Raise Your Monthly Benefits Even After You've Claimed Them

There’s a reason retirees are often warned not to sign up for Social Security too early. If you claim benefits before reaching full retirement age, you reduce them for the rest of your life. And if you don’t have a lot of savings to fall back on, that reduction could leave you cash-strapped throughout your retirement.

But the reality is that many seniors rush to claim Social Security at age 62 because it’s the earliest age to sign up. Or, they sign up after 62, but before full retirement age. And while that decision sometimes works out fine, some retirees who file for Social Security early end up regretting it after the fact.

If you claimed Social Security already and are unhappy with the monthly benefit you’re getting, you should know that you’re not necessarily stuck with it. There’s one lesser-known rule that could hook you up with a larger monthly retirement benefit. But you may need to act quickly to take advantage of it.

Exercising the do-over option

Some of Social Security’s rules are more well-known than others. For example, a lot of people are aware that delaying benefits beyond full retirement age boosts them in the process.

One rule you may not be aware of, though, is Social Security’s do-over option. Basically, what it allows you to do once in your lifetime is withdraw your application for benefits after you’ve filed, repay the money you collected, and file for Social Security again at a later point in time.

So let’s say you claimed Social Security at 62 because you wanted your money as early as possible, only now you’re stuck with a reduced benefit. If you take advantage of the do-over option, you can file again at age 66, or 68, or 70, and set yourself up with larger monthly payments.

That said, you may run into a couple of hiccups in exercising your do-over. First, you only get 12 months from your original filing date to withdraw your application for benefits. If you’re beyond that point, the option is unfortunately off the table.

Also, repaying a series of Social Security benefits is easier said than done. Even if you’re only talking about a few months of payments, if that money is already spent, you might struggle to come up with it.

But otherwise, Social Security’s do-over option could save your retirement if you’re struggling to pay your bills based on your current monthly benefit. So it’s worth seeing if you can take advantage of it.

Try to get your filing right from the start

It’s a nice thing that Social Security gives all recipients a second chance when it comes to filing for benefits. But because the do-over option isn’t necessarily so easy to use, your best bet is to try to get your filing age right from the get-go.

If you’re thinking of claiming Social Security early, figure out exactly how much monthly income that will cost you compared to filing at full retirement age. Then, set up a budget to see if that lower monthly check covers your expenses. If not, you’ll know off the bat that it pays to wait, even if it means delaying retirement a bit longer and working a few extra years.