What is "Voluntary Suspension" in the context of Social Security benefits?

Voluntary Suspension in the context of Social Security benefits refers to the ability of a beneficiary to suspend their retirement benefits after reaching Full Retirement Age (FRA). When an individual voluntarily suspends their Social Security benefits, it allows their benefit amount to increase due to delayed retirement credits. These credits are accrued for each month that benefits are suspended, up to age 70, leading to a larger monthly benefit once they choose to resume payments.

This mechanism provides a strategic decision for those who may want to enhance their benefit amount before permanently claiming Social Security. Voluntary suspension offers beneficiaries the flexibility of starting their benefits at a later age, maximizing their lifetime benefits based on the increase associated with delaying retirement. Additionally, this action can also allow for spousal benefits to be claimed while the primary beneficiary’s benefits are suspended, adding to the strategy involved in Social Security planning.