Retired? You Can Change Your Mind!

You may think that once you’re retired, it’s “game over” for your career. But the truth is, many retirees find themselves bored, unfulfilled, or developing new goals that require an increase in spending money. Maybe you retired earlier than you had intended, due to health issues, and then your condition improved. Or perhaps you receive a tempting job offer that you just can’t refuse. The reason doesn’t really matter. It’s never too late to change your mind about retirement and go back to work.

But what if you’ve already claimed your Social Security benefits? Technically, you can keep receiving your checks and still go back to work. But if you retired before your full retirement age (age 65 to 67, depending on your year of birth), you might consider withdrawing your application for benefits while you work, so that you can receive a larger Social Security check later. Social Security actually allows you to change your mind.

Of course, there are a few conditions. The main one is that you have to withdraw your application within one year of first receiving benefits. Once you have been claiming benefits for longer than a year, you can’t change your mind.

You will also have to pay back all of the benefits you received. Anyone else who drew benefits from your record will also have to repay the funds, so this could affect your spouse or even (in some cases) your child. Fortunately, Social Security will not charge you interest on this money.

Finally, you can only change your mind about Social Security once.

Most situations will not warrant a withdrawal of your Social Security application, but special situations require special solutions. Keep in mind that this is an option for you. For more information, call your Social Security representative and ask about Form SSA-521, and remember to speak with your financial advisor or tax professional about your plan.

http://www.ssa.gov/retire2/withdrawal.htm