Social Security Payback Option may disappear

jkom51August 25, 2010

FYI:

Social Security payback option may disappear

Proposed rule would eliminate do-over opportunity.

Kiplinger's Personal Finance, August 25, 2010

(excerpt)

An obscure strategy that allows Social Security recipients to boost their income by repaying benefits received in earlier years and then claiming a bigger monthly check based on their older age may soon disappear. Kiplinger has learned that the Social Security Administration is moving to eliminate the so-called do-over strategy.

If the agency gets its way, the new rule could take effect within a few months.

The once little-known payback strategy has been gaining attention in recent years, thanks in part to a series of articles by Kiplinger that unveiled several ways of making the most of your Social Security benefits (see "Secrets to aximizing Social Security").

If you or someone you know might benefit from the payback strategy, now's the time to consider it and come to a decision. Putting it off could mean letting the government make the decision for you  by eliminating the opportunity.

Here is a link that might be useful: Full article: Social Security option

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doteroo

I thought about doing the pay back but decided it was too much of a risk. I'd rather have the money in the bank and earning a little interest instead of worrying if I was gonna die and lose it.

    Bookmark   August 26, 2010 at 7:02PM
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calirose

The payback option seems only good for those who have a lot of cash on hand, or other income. It takes 11-13 years to make up the difference of what is paid early vs what is paid later in most cases.

    Bookmark   August 27, 2010 at 1:28PM
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jannie

Don't believe everything you read in Kiplingers Magazine. . Has anyone seen anything in a national news broadcast or well-known Newspaper about this? It generally "pays" to take early Social Security (age 62,usually) unless you are working and have a big income. Collecting money from the government and then paying it back doesn't seem like a good strategy. Unless you sock it all away and get some decent interest on it first. Did you know Social Security even offers extra credit "delayed retirement credits" if you forego any payments between full retirement age (now66) and age 72?

    Bookmark   October 8, 2010 at 10:41AM
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