Claimed Social Security early: two ways to undo early filing penalties

The article notes that claiming Social Security before full retirement age typically lowers ongoing benefits and that you can rescind a claim within 12 months to undo those reductions, but rescinding requires repaying all benefits received.

Many Americans are uncertain about when they reach their Social Security full retirement age, and some expect benefits to be recalculated once they reach it. The article reports that, as a general rule, benefits are not automatically recalculated at full retirement age and that claiming before it typically reduces ongoing benefits. It says those reductions can be significant and outlines two ways to recover lost money. The piece describes one option in detail and explains its main requirements and limitations. Key points: - Many seniors do not know their Social Security full retirement age and may expect benefits to be recalculated at that milestone. - Claiming benefits before full retirement age typically results in a permanent reduction to ongoing benefits, sometimes by about 30%. - You can rescind your Social Security benefits claim within 12 months of making it. - Rescinding causes the Social Security Administration to treat you as though you never claimed, which removes early filing penalties. - Rescinding requires repaying all benefits already received, including any payments made to others on the work record, and this repayment obligation makes the option impractical for many people. Summary: Early filing can lead to permanently lower monthly benefits, and rescinding a claim within 12 months is one formal way to reverse those reductions. Rescinding requires repaying all benefits already received, including benefits paid to others on the work record. Undetermined at this time.