There are many ages to apply for Social Security retirement in the United States. Each has a number of advantages and disadvantages. Applying for Social Security at age 62 is the earliest way to do so. On the other hand, the latest is age 70, but there is Full Retirement Age (FRA) as well. The FRA can be applied for at age 67. This type of retirement gives 100% of the monthly money due to the beneficiary.
If you have applied for Social Security FRA you may be entitled to certain retroactive payments. Not all beneficiaries can have these payments, but there are some who may. If you are entitled to these payments, it means that SSA must pay you a financial amount. In addition, if the payments are long overdue, you may even have an extra bonus related to late fees, although that happens in very specific cases.
Retroactive payments in Social Security
These types of payments are very specific, but very possible. If you apply for Social Security retirement before age 70, it is very likely that you will be able to apply to the SSA for back payments. You can receive up to 6 months of payments by doing this. To apply for this type of back pay, you must do so at the same time you apply for retirement.
In most cases, these payments will not become effective until January of the following year. Therefore, you will start collecting Social Security for your retirement. After that, starting in January, you will enjoy a larger amount of money if you applied to collect the back payments. Your local office can help you with this, although a lawyer may also be of benefit.
One-time or piecemeal payment?
For the retroactive benefits of Social Security retirement benefits, you can choose whether you prefer the lump sum or not. The advantage of a lump sum is that you will be able to enjoy a good amount of money almost immediately. Therefore, if you want to go on vacation, this may be your best option.
On the other hand, if you prefer to have more money every month, the month-to-month option is much better. Note, however, that you may be able to claim these retroactive payments after the FRA as sooner you cannot do so at all. The final decision depends on what you are looking for in retirement.