Suspending Social Security: what you need to know

1 min read by Unbiased team Last updated January 31, 2025

Discover the benefits and considerations of suspending Social Security benefits and its impact on your retirement planning.

Key takeaways
  • Suspending Social Security benefits allows retirees to pause payments to increase future monthly benefits.

  • Delayed retirement credits can raise benefits by up to 8% annually until age 70.

  • Individuals must reach full retirement age (FRA) and have claimed benefits before pausing them.

  • Social Security suspended payments can be restarted anytime after suspension with proper steps. 

  • Unbiased will match you with a financial advisor to help you make confident decisions about your Social Security benefits and retirement planning.

What does it mean to “suspend Social Security”?

To suspend Social Security benefits means to voluntarily pause monthly payments after reaching full retirement age (FRA). This unique option gives retirees the flexibility to fine-tune their financial plans and adapt to changing circumstances.

By temporarily stopping payments, you allow your benefits to grow through delayed retirement credits, which result in higher monthly payouts when resumed.

Suspending Social Security benefits is a strategic tool that can align with your broader financial goals. This approach is especially valuable for retirees aiming to maximize their income later in life or those balancing other income sources.

Common scenarios where this might make sense include extending your working years, optimizing tax efficiency, or preparing for a higher cost of living in the future.

Why suspend Social Security benefits?

There are many reasons for suspending social security benefits, including:

Earning higher monthly benefits through delayed retirement credits

One of the most compelling reasons to suspend Social Security payments is the potential to earn delayed retirement credits.

These credits increase your monthly benefit by up to 8% per year for each year you delay claiming benefits after FRA up to age 70. For individuals who expect to live longer or wish to increase their long-term income, this can result in substantial financial gains.

Adjusting income for tax optimization

Social Security benefits are partially taxable depending on your overall income. By suspending Social Security benefits, you may lower your taxable income, potentially avoiding a higher tax bracket.

This strategy can be particularly advantageous for those with fluctuating income from other sources, such as retirement accounts, part-time work, or investments.

Temporary financial planning strategies

Some individuals choose to pause their benefits as part of a broader financial strategy.

If you receive a financial windfall or are temporarily working part-time and elect to suspend Social Security payments, you can reduce unnecessary cash flow while ensuring that your benefits continue to grow.

This flexibility enables retirees to adapt to their financial needs without forfeiting future income potential.

What are the eligibility requirements for suspending Social Security?

To qualify for suspended Social Security, specific conditions must be met.

Firstly, you must have already claimed retirement benefits before reaching FRA. Without this step, you are not eligible to pause your benefits. Secondly, you can only suspend payments once you reach FRA, which is between 66 and 67, depending on your birth year.

It’s also important to note that when you suspend your payments, anyone receiving spousal or dependent benefits tied to your record will also see their payments stop.

Additionally, suspensions are automatically lifted at age 70, the maximum age at which you can earn delayed retirement credits. Understanding these rules is essential to avoiding unexpected financial impacts.

How to suspend Social Security payments

Here’s how you can suspend your Social Security payments:

1. Confirm eligibility (reaching FRA or above)

Before proceeding, verify that you meet the eligibility requirements. Ensure that you have already claimed benefits and reached FRA. This step is critical, as attempting to suspend payments without meeting these criteria will result in rejection.

2. Contact the Social Security Administration

Once eligibility is confirmed, contact the Social Security Administration (SSA). You can do this online or by phone, and the SSA will guide you through the process. Their representatives can also answer any questions about the timeline or implications.

3. Complete necessary forms or requests

The SSA requires you to submit a formal request to suspend Social Security payments. Take care to fill out all forms accurately, as errors can delay processing or result in misunderstandings. Staying organized ensures a smooth experience.

4. Understand the timeline for suspension and effective dates

Suspensions typically take effect the month following your request. It’s essential to plan accordingly to ensure that this aligns with your financial strategy and that you are prepared for the temporary pause in income.

Restarting suspended Social Security benefits

Understanding how to restart suspended Social Security benefits helps ensure the process is smooth and aligns with your financial goals:

1. Understand the timeline for resumption

Restarting benefits is straightforward but requires attention to timing. You can request to restart payments at any point after suspension, and the process usually takes effect the following month. This flexibility helps retirees adjust to changes in their financial needs.

2. Contact the SSA to initiate the process

Reach out to the SSA online or by phone to begin the process. Be prepared to provide your details and confirm your request. The SSA will handle the rest.

3. Verify any adjustments to payment amounts

When restarting benefits, your payments will reflect any delayed retirement credits earned during the suspension period. For instance, if you paused benefits for two years, you will see an 8% annual increase for those years. Reviewing these adjustments ensures your expectations align with the updated figures.

How many times can you suspend Social Security benefits?

While there are no legal limits on how many times you can suspend Social Security, practical considerations should guide your decisions.

Frequent suspensions can complicate financial planning and result in missed opportunities to maximize delayed credits. Therefore, it’s generally advisable to use this option sparingly and only when circumstances change significantly.

What are the financial implications of suspending benefits?

Pausing benefits temporarily means giving up income in the short term. However, the long-term rewards often outweigh this trade-off. Higher monthly payments from delayed credits can provide more financial stability and accommodate rising costs in retirement.

For example, a monthly benefit of $2,000 at FRA could grow to $2,640 by delaying payments until age 70, thanks to the 8% annual increase from delayed retirement credits earned with Social Security suspended.

Over a 20-year retirement, this higher monthly benefit can add significant value and provide greater financial security and flexibility.

What are some common mistakes to avoid when suspending Social Security?

Suspending benefits without understanding the financial impact

It’s essential to know how pausing payments will affect your immediate cash flow and long-term financial plan. Without a clear understanding, you risk jeopardizing your ability to cover living expenses or missing opportunities to optimize your retirement income.

Missing deadlines for suspension or resumption requests

Timely requests are crucial to ensure your suspension or resumption aligns with your financial needs. Delays or missed deadlines could disrupt your income strategy or result in unnecessary confusion.

Failing to consult a financial advisor for personalized advice

Professional guidance helps tailor your decision to your unique situation. A financial advisor can provide insights into how suspending Social Security benefits fits within your broader financial plan, ensuring it supports your long-term goals.

Is suspending Social Security right for you?

Deciding whether to suspend Social Security benefits requires careful, informed decision-making based on your unique financial situation, health, and retirement goals.

This option is often beneficial for individuals who can afford to delay income, expect a longer lifespan, or want to maximize their future monthly benefits through delayed retirement credits.

It can also be a strategic choice for those looking to manage taxable income or align payments with other financial resources. However, it may not suit individuals who rely on immediate benefits to cover living expenses or those with shorter life expectancies.

Find the right financial advisor

Suspending Social Security is a strategic tool that empowers retirees to optimize their benefits and achieve greater financial flexibility.

By understanding the rules, benefits, and potential pitfalls, you can make informed decisions that enhance your retirement income.

Let Unbiased match you with a professional financial advisor to help you navigate decisions like suspending Social Security benefits and create a retirement plan tailored to your goals.

Writers

Unbiased team

Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.