Confused about switching from survivor benefits to retirement at 70 - what happens with $10k retroactive payment?

The retroactive payment is basically allowing you to 'file late' but get paid as if you had filed earlier. The important thing to understand is that if you take the retroactive benefits, your monthly amount will be calculated based on the earlier date - so instead of getting the full 8% per year increases all the way to 70, you'd get the benefit amount calculated at an earlier age. For example, if they're offering 6 months of retroactive benefits, your ongoing monthly benefit would be calculated as if you were 69.5 instead of 70 - meaning approximately 4% less forever. The trade-off is: one-time $10k payment now vs. slightly higher monthly payments for the rest of your life. Whether this makes financial sense depends on your life expectancy and financial situation.

i went thru this last yr. took survivor after my wife died then switched to mine at FRA. no regrets. didnt take retro $ cuz agent said itd lower monthly amt. do the math carefully!! if u live long enuf the higher mthly amt beats retro $$$. good luck!

I work with retirees, and this is actually a pretty common situation. The retroactive benefits are typically offered for up to 6 months when filing for retirement benefits. Here's what you need to understand: 1. If you take the retroactive benefits, your monthly payment will be calculated based on that earlier filing date 2. Each month you file before age 70 reduces your benefit by about 2/3 of 1% (or 8% per year) 3. You need to calculate your "break-even point" - how long would it take for the higher monthly benefit to surpass the one-time $10k payment Typically, if you're in good health and expect to live past your early 80s, it's mathematically better to decline the retroactive benefits and get the higher monthly amount. But everyone's situation is different. I'd recommend writing down all the numbers they're giving you and asking specifically: "What would my monthly payment be if I file at 70 vs. if I take the retroactive benefits?" Get those exact figures.

BE CAREFUL!!!! The SSA people ALWAYS try to get you to file early! They don't care about what's best for YOU, they just want to process your claim and move on! I almost got tricked into filing early and would have lost THOUSANDS over my lifetime. Don't let them pressure you into a quick decision just because they dangled $10k in front of you. That's nothing compared to what you might lose over 20+ years of retirement!!!

I had a similar situation last year and spent WEEKS trying to get a straight answer from SSA. I'd call, wait on hold for 2+ hours, then get disconnected. Or I'd finally reach someone who gave me conflicting information from the last person. I finally tried Claimyr (claimyr.com) after my neighbor recommended it. They connected me to a Social Security agent in less than 20 minutes, and I finally got all my questions answered clearly. Their video demo shows exactly how it works: https://youtu.be/Z-BRbJw3puU Once I actually got through to a knowledgeable agent, I learned that in my case, taking the retroactive payment would have reduced my monthly benefit by $175/month FOR LIFE. That adds up to way more than the one-time payment they were offering me.

wait I'm confused about something... are survivor benefits and SSI the same thing? Because my mom gets SSI and shes trying to figure out when to switch to her regular social security too

This is exactly why dealing with Social Security is so frustrating. They present options without clearly explaining the long-term consequences. From what others have said, it sounds like you'd be giving up a permanent increase in monthly benefits for a one-time payment. Have you tried scheduling an in-person appointment at your local office? Sometimes it's easier to understand these complicated choices when someone can show you the numbers on paper rather than trying to process everything over the phone.

When I was deciding between retroactive benefits or waiting until 70, I requested what's called a "PEBES statement" (now called a Social Security Statement) from two different filing dates so I could actually SEE the difference in writing. They should be able to generate these for you showing exactly what your monthly amount would be under both scenarios. This made the decision much clearer for me than trying to understand verbal explanations.

my brother took the retro $ and regrets it now. hes getting $240 less EVERY MONTH for the rest of his life bc of that decision. think loooong term!!!!

I'm new to this community but going through a similar situation with my own benefit planning. Reading through everyone's responses has been incredibly helpful! It sounds like the key takeaway is that you need to get the exact monthly benefit amounts in writing for both scenarios before making any decision. From what I'm understanding, the $10k retroactive payment might sound attractive upfront, but if it permanently reduces your monthly benefit by even $100-200, that could cost you tens of thousands over your lifetime. At your current survivor benefit of $2,260 and projected retirement benefit of $3,125 at 70, you're already looking at a significant monthly increase - don't let them pressure you into giving up part of that increase for a one-time payment. I'd definitely recommend the in-person appointment suggestion someone mentioned above. Having everything written down and being able to ask follow-up questions face-to-face seems like the best way to avoid any confusion or misunderstandings about such an important financial decision.

I went through this exact decision two years ago and I'm so glad I waited until 70! The SSA agent was very persistent about the retroactive benefits - kept emphasizing the immediate $8,500 I could get. But I did the math and realized it would have cost me about $180/month for life. Here's what helped me make the decision: I asked the agent to mail me a written comparison showing both scenarios - my monthly benefit if I took retroactive vs. waiting until 70. Seeing those numbers on paper made it crystal clear. In my case, I would have broken even at around age 74, but since I planned to live well beyond that (and thankfully am in good health), waiting was the obvious choice. The key is don't let them rush you into a decision during that phone call. Ask for everything in writing, take time to review it, and maybe even bring it to a financial advisor or trusted family member to look over. This is one of the biggest financial decisions you'll make - a few extra days or weeks to think it through is worth it for a choice that affects the rest of your life.