Can You Pause Social Security Benefits?
Explore options for managing your Social Security benefits, including pausing payments and understanding the impact.
Social Security is a federal program designed to provide financial support to millions of Americans, primarily offering retirement benefits, but also disability income and survivor benefits. A common question that arises is whether these benefits, once started, can be paused or suspended.
Understanding Benefit Suspension
Suspending Social Security benefits means an individual voluntarily stops receiving their monthly payments after they have already begun. This option is specifically available for those who have reached their Full Retirement Age (FRA) but have not yet reached age 70. The Full Retirement Age varies depending on an individual’s birth year, gradually increasing from age 66 to 67 for those born in 1960 or later.
It is important to distinguish benefit suspension from withdrawing an application. If an individual claimed benefits before their Full Retirement Age and wishes to stop payments, they cannot simply “pause” them; instead, they must withdraw their application within 12 months of becoming entitled and repay all benefits received. In contrast, voluntarily suspending benefits at or after Full Retirement Age does not require the repayment of any benefits already received. Individuals often choose to suspend their benefits to accrue delayed retirement credits, which can lead to a higher monthly payment in the future.
How to Suspend Benefits
The process for suspending Social Security benefits involves direct communication with the Social Security Administration (SSA). Individuals can initiate a suspension request by contacting the SSA through several methods.
The most common ways include calling the national toll-free number at 800-772-1213, visiting a local SSA office in person, or submitting a written request.
When making the request, individuals should provide their personal identification and Social Security number, along with a clear statement of their intent to suspend benefits. The suspension of benefits begins the month after the request is made. For instance, if a request is submitted in June, the June benefit payment will still be issued, with payments ceasing starting from the July benefit month.
Benefits will automatically restart once the individual reaches age 70. Alternatively, the individual can request to reinstate their payments at any time before age 70 by contacting the SSA.
Consequences of Pausing Payments
Suspending Social Security benefits carries several consequences, primarily impacting future benefit amounts and other financial obligations. The most significant financial outcome of suspending benefits is the accumulation of delayed retirement credits.
These credits increase an individual’s monthly benefit amount for each month they delay receiving payments past their Full Retirement Age, up until age 70. For those born in 1943 or later, this increase amounts to 8% per year, or two-thirds of 1% for each month benefits are delayed. This strategy can lead to a substantially higher monthly payment for the remainder of one’s life.
When a primary beneficiary suspends their Social Security benefits, any spousal or dependent benefits being paid on their earnings record will generally also be suspended. An exception to this rule typically applies to divorced spouses, who may continue to receive their benefits independently.
A practical consideration involves Medicare Part B premiums. If Social Security benefits are suspended, Medicare Part B premiums will no longer be automatically deducted from the monthly Social Security payment. The individual then becomes directly responsible for paying these premiums to Medicare to ensure continuous coverage.
Additionally, during the period that Social Security benefits are suspended, there is a cessation of income taxation on those benefits, as no payments are being received.