What Happens If I Collect From Age 66 To 68 And Then Suspend My Benefits?

Mar 10 2017 - 7:45am

I just turned 64 this year. In two years when i am at full retirement age can collect my social security for two years, suspend it, continue to work and pay into my social security untii age 70? Can you please explain how this would work. I have a credit card debt that needs to be paid off. Thank you!

Hi Brad,

If you start drawing at age 66 and then suspend your benefits from age 68 to 70, your benefit rate will be 16% higher when they resume at age 70. This would be due to delayed retirement credits (DRC), which are credited at a rate of 2/3rds of 1% per month for each month that you defer drawing your benefits between full retirement age and age 70.

And, if you continue working, you could raise your benefit rate even further. Social Security retirement benefits are based on a person's highest 35 years of work-adjusted earnings (https://www.ssa.gov/pubs/EN-05-10070.pdf), so your monthly benefit rate will increase if you replace one or more of the years used in computing your rate with a higher earnings year.

You may want to strongly consider running the maximization software available on this website in order to determine your best strategy.

Best, Jerry