Giant Little-Known Social Security Loophole Could Be Shut Down

Those of us who were forced to start collecting Social Security benefits at 62- the earliest year – still have an opportunity to bump up our benefits to a much higher level.

There is a little known loophole in the Social Security regulations that permit people to pay back their benefits and start all over at a much higher monthly level.

I have written about this before, but am writing again after reading a report in the Wall Street Journal last weekend that the Social Security Administration is considering closing this loophole.

Now this is NOT for everyone. And before taking action talk to a financial professional who specializes in Social Security benefits.

But lets say you are 66 and have been collecting Social Security for the past four years. You now want to purchase an annuity for $100,000. If you are healthy and your parents and grandparents lived to be in at least their high 70s, you might want to consider using that money to pay back Social Security.

I have seen the figures and you can’t buy an annuity that even comes close to the deal you get if you start Social Security fresh at 66 or even wait a couple of years.

For some people going this route than increase your lifetime earnings by tens of thousands of dollars.

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4 Comments on "Giant Little-Known Social Security Loophole Could Be Shut Down"

  1. I have been reading about the loophole and I am trying to understand how it affects me. I am 58 and disabled. I receive disability benefits. This is my main course of income. My husband is 65 and still working. What if anything, can apply to us. We do have a 25 year old student that lives with us.

  2. Jeffrey Karrow | January 10, 2016 at 7:21 am |

    I was forced to take Social Security at 62 after suffering congestive heart failure and being diagnosed with COPD! After being denied disability 3 times I’m left trying to live on $731 a month in benefits! I’m about to lose my home. I’m single, broke and terrified. What can I do?

  3. Dennis Smith | January 10, 2016 at 6:42 pm |

    I am 64 and will be 65 in April if I go ahead and start social security and suspend it will it make a difference next year if I start it again at age 66.

    • i am 73 yrs old and draw $1300/mo. could i go back and start drawing what i would have made if I had started withdrawing at age 65? i started withdrawing at age 62? I would like to have started at age 65 but I needed the SS money at 62 yrs.old. please tell me if i qualify for this ?


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