Opt out of Social Security payments - can you do that?

[MyUncle]

Can someone who is receiving Social Security say "no thanks" and stop getting payments from the program? If not, we should put that in there so people who do not need it can opt out,show their patriotism and keep that money in the system.

[Hannah Bell]

1. people can already do that. chose not to take the money, that is.

[NoNothing]

2. Even if you can't

You are certainly free to donate the money back to the U.S. Treasury.

[damntexdem]

9. Hey, receive the check and sign it over to me.

;-)

Or, more seriously, donate it.

[SammyWinstonJack]

3. Can but probably don't.

:evilgrin:

[pitohui]

4. you can delay collecting until age 70

i assume that if you wish to delay after that age, then you would just not complete the paperwork to start getting your direct deposits

nobody's gonna run around placing $ in yr bank account against your will

[tularetom]

5. I guess you could always sign the check back over to the US treasury

My mom always complained about social security and how she thought it was a giveaway of government funds designed to give money to lazy old people. She was going to refuse to take her SS check. But somehow, when she got old she she resisted her noble intentions and kept the checks. I think at most they were a couple hundred bucks a month.

[old mark]

6. Just don't sign up for it...it's not automatic, you have to do paperwork...

If you don't want it, don't do the paperwork.

I doubt too many rich people would pass it up, though, need it or not...probably complain because it's not enough.

mark

[Statistical]

7. There is no option to opt out or stops payments however.

You need to expressly start collecting payments so if you do nothing you will never get a payment. It doesn't happen automatically. Sometimes there are valid reasons to delay SS payments (longer you wait larger the check).

However once payments start there is no method to halt or suspend payments.

Another option would be under the physical check system you could simply never cash the checks however SS is going completely direct deposit and/or debit card in the future.

[doc03]

10. Not true, Once payments start you can halt payments. Example

I started receiving my SS checks of $1475 per month a few months ago at 62. At my full retirement age of 66 I could repay the money I received over the 4 years and reapply for SS at the full amount of about $2000 per month. Especially now that interest rates are so low and if you have the cash and there is nobody you want to will your money to it's a way of increasing your monthly income. (I am not positive about this) But I think you can say retire at 62 and decide you want to return to work at 65, you can repay your money and work a few years and reapply at say 70 at a higher monthly rate.

[RB TexLa]

8. You can suspend them and for each year you do you get an additional 8 or 6% in benefits

when you do start taking them. Apply and suspend is the term, I think.


As far as opting out, just don't cash the checks.

[mysuzuki2]

11. I have worked for Social Security for 30 years

there is a provision of the law that allows a person to waive benefit payments after they have started. However, I have NEVER seen anyone actually do that. If a person doesn't want the money i suppose they just don't file an application.

[doc03]

12. You are aware that you can stop your benefits at any time

and pay them back and reset you benefits at a higher level. If they don't change the rules, take myself I retired at 62 at about $1500 per month at 66 I can repay the money I received and restart my SS payments at about $2000 per month. I would have to repay $72,000 but I would gain $500 per month in benefits and if I lived another 12 years I would get all that money back. It actually makes sense to do that today if you have the cash to pay it back. With today's interest rates you may make $120 per month interest on the money but if you paid it back to SS you would in effect make 8.3% on the $72000.

[mysuzuki2]

14. You might want to check with the IRS first

I know zip about tax law but you would want to find out if you can file amended tax returns for previous years. I know SSA will not issue corrected 1099's. This strategy is being advocated by a lot of financial experts but I think it will only work out for a relatively small number of people.

[northernlights]

13. actually, you can stop receiving SS

and you can pay it back.

For example, if you are forced by unemployment to start collecting early, say at 62, and then at 64 you get a great job (or start a business that takes off) you can pay back what you collected between 62 and 64, and postpone collecting again. That enables people to rebuild their SS nestegg that they were forced to raid early, and then refile and start collecting their full benefits later.

Or not. As others have stated, if you simply don't file to collect, nobody will just start sending that money.