Boost Your Lifetime Income: The Power of Claim-Suspend-Restart

Maximizing your Social Security benefits can significantly impact your retirement income. One strategy that could potentially boost your lifetime income by up to $271,790 is the "claim-suspend-restart" (CSR) strategy. This strategy involves claiming Social Security early, suspending your benefits for 1 to 3 years after reaching your full retirement age (FRA), and then restarting your benefits at age 70. By doing so, you can accrue delayed retirement credits, increasing your future payments.



The CSR strategy can significantly increase lifetime income compared to claiming Social Security early. Here's how it compares to other claiming options:

* Claiming early (at age 62): A 30% permanent reduction in monthly benefits compared to claiming at FRA.
* Claiming at FRA: Your full benefit, which is 100% of the benefit calculated from your earnings history.
* Delaying until age 70: An 8% increase in your benefit for each year you delay past your FRA.

With the CSR strategy, you can increase your annual or monthly benefit by up to 24% compared to claiming early at age 62. For example, if your FRA benefit is $2,000, using the CSR strategy could increase your benefit to $2,480 per month. Compared to claiming at your FRA, the CSR strategy can result in a 12% increase in your annual or monthly benefit, increasing your benefit to $2,240 per month. However, compared to delaying until age 70, the CSR strategy can result in a 10% decrease in your annual or monthly benefit, but it allows you to access benefits earlier.

While the CSR strategy can potentially increase lifetime income, it also comes with several risks and drawbacks:

1. Income loss during the suspension period: By suspending Social Security benefits, individuals will not receive any income from the program during that time, which could lead to financial strain.
2. Risk of outliving the increased benefit: There is a risk that the individual may not live long enough to reap the benefits of the increased payout.
3. Potential loss of survivor benefits: If the higher-earning spouse suspends their benefits and later dies, the surviving spouse may lose out on a larger survivor benefit.
4. Complexity and potential missteps: The CSR strategy involves a complex set of rules and requirements, which can be difficult for individuals to navigate on their own. Missteps in the claiming process could result in reduced benefits or even the loss of benefits entirely.
5. Uncertainty about future Social Security funding: Some people may be concerned about the long-term solvency of the Social Security program, which could impact the CSR strategy's effectiveness.

In conclusion, the CSR Social Security strategy can potentially increase lifetime income for those who can afford to forgo some payments for 1 to 3 years. However, it also comes with several risks and drawbacks that individuals should carefully consider before implementing the strategy. It is essential to consult with a financial advisor or Social Security expert to ensure that the strategy is implemented correctly and that it aligns with your individual financial goals and circumstances.