ssdi
Hi Terry, wanted let you know that Pam Krueger has set me up with a great advisor and am moving forward with my retirement plan. Thank you for all you do. I do have another question that I hope you can find the answer for. I have been on social security disability because of late stage cancer which I am now two years free of but I am left with side effects resulting from treatment and surgeries that render me unable to work. My disability stops when I reach full retirement age next year and transitions into retirement benefits. I would like to defer the retirement benefits until age 70 and live off of savings, however my advisor does not think that this an option because my ssdi amount is equal to what I will receive at FRA. I had spoken to a social security rep about this and he indicated that I could contact their office prior to reaching FRA to opt into deferring my benefits. I know you have spoken in the past of how unreliable information coming from social security employees can be. So, can you please provide to me “THE SAVAGE TRUTH’ regarding this issue? Sincerely, your #1 fan
Terry Says
I had to check with the real Social Security guru, my co-author Larry Kotlikoff. He says YES, you can suspend your benefit once you reach full retirement age. And he has offered to help you through the process. I know it’s a year away. But when you get the email saying “your question has been answered”, please reply and I’ll connect the two of you so he can explain what you’ll need to do.
And here’s an update from SS legal expert Avram Sachs:
Hi, Terry and Larry,
Larry is correct. This exact scenario, by the way, is addressed in the POMS, at POMS § GN 02409.110A.1. See the third example.
The beneficiary should be aware that during the period benefits are suspended, neither his wife or children will be able to obtain a benefit on his earnings record. Additionally, he will not be able to collect any benefits on anyone else’s record during that time, according to POMS § GN 02409.120.
He should also be aware that any request is not effective until at least the month AFTER the month in which the request is made. However, he may request voluntary suspension as early as three months prior to the suspension month. So, for example, if he reaches FRA in say, July 2026, he can request voluntary suspension as early as April 2026.
I do not believe this can be done online. He will either need to call the SSA to make an appointment to do this, or, he could send a request via PRIORITY MAIL. There is no special form for the request. He should include his name, address, telephone number, and Social Security number on the letter he sends to the SSA.
Reinstatement at age 70 should be automatic. See POMS § GN 02409.130A.
