My question relates to retroactive payments. I turned 69 in May and now want to file for benefits, though I understand that it may be 3-4 months before I receive the first payment, thus, if I understand correctly, I would receive 8 or 9 months of the benefit of not waiting until I am 70, which reduces its comparative advantage. So, 1) can I ask for payments to be retroactive back to May only, and specifically, once they begin; and 2) will Soc. Sec. further reduce my monthly benefit from the age 69 calculated amount because of the retroactivity? Thanks.

Hi,

You can ask to start your benefits effective up to 6 months prior to the month you apply. Thus, if you apply in May 2018, you could claim benefits retroactively as far back as November 2017. And, yes, if you claim benefits retroactively you'll lose the delayed retirement credits (https://www.ssa.gov/planners/retire/delayret.html) that you'd have otherwise accrued for those months. In other words, if you start drawing benefits effective with November 2017 vs. May 2018 you'll lose 4% in your benefit rate in return for receiving 6 months of back pay. And furthermore, if you're married and your spouse outlives you that lower rate would carry over to the survivor rate potentially payable on your record.

By the way, it rarely takes as long as 3-4 months to start receiving payments unless you file in advance of the month that you want to start getting benefits. Before filing, though, you should strongly consider using our maximization software to compare your options in order to determine the long term effects of your month of entitlement choice.

Best, Jerry