Can You Withdraw From Social Security?
Clarify how Social Security works. Understand if you can withdraw contributions and the rules for accessing and managing your benefits.
Social Security is a national social insurance program providing financial protection and income to eligible Americans. It is primarily funded through dedicated payroll taxes, known as Federal Insurance Contributions Act (FICA) taxes, collected from employees and employers. These contributions support retirement income, disability payments, and survivorship benefits.
Nature of Social Security Contributions
Social Security operates on a “pay-as-you-go” system, where contributions from current workers largely fund benefits for current retirees and other beneficiaries. Unlike a personal savings account, money paid into Social Security taxes is not held in individual, withdrawable accounts.
Instead of personal accounts, individuals earn “work credits” through their employment and self-employment. To be eligible for most Social Security benefits, a worker generally needs to accumulate 40 work credits, with a maximum of four credits earned per year. These credits establish eligibility for benefits, but they do not represent a personal fund from which money can be directly withdrawn.
FICA taxes are split between employees and employers. For 2025, employees contribute 6.2% of their earnings to Social Security, up to an annual wage base limit of $176,100, and 1.45% for Medicare, with no wage base limit. Employers match these rates, contributing an additional 6.2% for Social Security and 1.45% for Medicare. Self-employed individuals pay both the employer and employee portions, totaling 12.4% for Social Security and 2.9% for Medicare on their net earnings, also subject to the Social Security wage base limit.
When You Can Claim Social Security Benefits
The age at which an individual chooses to begin receiving Social Security retirement benefits significantly impacts the monthly amount received. The Social Security Administration defines a Full Retirement Age (FRA), which is the age at which a person is eligible to receive their primary insurance amount, or full unreduced benefit. This age varies based on birth year, with 66 for those born between 1943 and 1954, gradually increasing to 67 for individuals born in 1960 or later.
While the full retirement age offers the standard benefit, individuals can elect to begin receiving benefits as early as age 62. Claiming benefits before reaching full retirement age results in a permanent reduction of the monthly benefit amount. For instance, if an individual’s full retirement age is 67 and they claim benefits at age 62, their monthly payment could be reduced by approximately 30% for the rest of their life.
Conversely, delaying the start of benefits past full retirement age can lead to a permanently increased monthly benefit. This increase is achieved through Delayed Retirement Credits (DRCs), which are earned for each month benefits are postponed up to age 70. For those born in 1943 or later, the annual increase amounts to 8% of the full retirement age benefit for each year delayed. For example, an individual with a full retirement age of 67 who delays claiming until age 70 would receive a benefit approximately 24% higher than their full retirement age benefit.
Pausing or Restarting Social Security Benefits
Once Social Security benefits have commenced, there are specific provisions that allow beneficiaries to either temporarily stop or withdraw their claim under certain conditions. These options offer flexibility but come with distinct requirements and implications.
One such option is a “voluntary withdrawal” of an application. If a person has been receiving benefits for a short period, they may be able to withdraw their application. This process requires the repayment of all Social Security benefits received by the individual and any family members on their record. By completing Form SSA-521, “Request for Withdrawal of Application,” the initial application is essentially canceled, allowing the individual to reapply for benefits at a later date, potentially at a higher monthly amount if they delay claiming.
A separate provision is the “suspension of benefits,” which is available to individuals who have reached their full retirement age but are not yet age 70. This option allows beneficiaries to voluntarily pause their monthly payments. The primary purpose of suspending benefits is to earn Delayed Retirement Credits, which will increase the monthly benefit amount when payments restart. For example, if someone reaches their full retirement age at 67 and suspends benefits for two years, their monthly payment will increase by 16% when they resume receiving payments at age 69. Benefits automatically restart at age 70, or can be restarted earlier upon request. This differs from a voluntary withdrawal because it does not require repayment of past benefits and is only available after reaching full retirement age.