My friend just started collecting SS. Born 1952 ,started collecting at 67. She got a lump sum. This sounds to good to be true. It sounds like it might affect your monthly amount. She continues to work. I ve been thinking of starting my receiving mine when I turn 67 this October 2019. Please advise.

Hi,

Since your friend filed for benefits a year after she reached her full retirement age (FRA) of 66, she was allowed to claim benefits retroactively for the maximum possible 6 months. Assuming that's what happened, Social Security would then pay her back pay in a lump sum.

However, assuming that your friend filed for her own Social Security retirement benefits, choosing to accept retroactive benefits will have a negative impact on her benefit amount. If she had started drawing effective with the month she turned age 67, her benefit rate would have been 8% higher than her FRA rate, or primary insurance amount (PIA). But, since she apparently opted to claim benefits retroactively to the month she reached age 66 & 6 months, her benefit rate will only be 4% more than her PIA. If she had instead waited until age 70 to claim her benefits, her benefit rate would have been 32% higher than her PIA. Therefore, claiming benefits sooner rather than later will mean a significantly lower benefit rate for your friend.

Since you were born prior to January 2 1954, if you could qualify for spousal or divorced spousal benefits you could potentially claim those benefits now and wait until age 70 to start drawing your own benefits. Even if you aren't eligible for spousal or divorced spousal benefits, though, you probably still have numerous options available to you with regard to your own Social Security retirement benefits. You should strongly consider using our software to explore and compare your options so that you can choose the best possible strategy for claiming your benefits.

Best, Jerry