Hi, I reached my FRA of 66 in 2019. I am in the application process for SS benefits currently at age 69. SSA reached out to me with the option of receiving a lump sum payment covering benefits from July of 2020. With a reduced benefit going forward from the full amount I would receive at this time from DRC. Curious as to why SSA made this option available. Hoping for some insight from your experience. My instincts are telling me to just stick with the full benefit I have earned with 3+ years of DRC's. Thank you, FD.

Hi FD. The simple answer is that it's part of the Social Security Act that was passed into law by Congress (https://secure.ssa.gov/apps10/poms.nsf/lnx/0200204030). Part of the Social Security Administration's (SSA) responsibilities is to explain a person's filing options when they apply for benefits. One of the options provided by law to people who apply for benefits after their full retirement age (FRA) is to claim up to 6 months of retroactive benefits.

Therefore, SSA is simply explaining to you that you do have the option of claiming benefits up to 6 months prior to the month you applied, but it's entirely up to you whether or not to do so. Electing retroactive benefits would mean receiving back pay at the cost of a permanently lower monthly benefit rate. You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your options so that you can determine your best strategy for maximizing your benefits.

Best, Jerry