Ask Social Security Questions and Get Answers ASAP
My name is***** and I will be helping you with your question today. This is for informational purposes only and does not establish an attorney client relationship.
There is not really a lump sum benefit that is paid by social security retirement. Basically what happens if say you turn age 66 and do not elect to take your benefit, and 8 months into the year, you decide to take the election for that year. You would receive benefits for the entire year. So the 8 months that you did not take your benefits would be given as a lump sum. It just pays you for the entire year. If you are receiving survivor benefits there are many reasons to continue that as your retirement benefit grows for every year you defer it and the increase is permanent. It probably does not make sense to take your benefit if you are receiving a similar retirement benefit. After full retirement age you will receive 8% credits until age 70 and receive the maximum benefit possible then. You would then take the highest benefit between the two. A lump sum would not be possible as you are receiving survivor benefits during thay time and if you elected to take your benefit there would be no lump sum as you were recieving the survivor benefit (you get the highest of the two). Yes survivor benefits would not be subject to a lump sum and retirement benefits are but probably not in your circumstance.
Please let me know if you have any further questions and please positively rate my answer if satisfied. There should be smiley faces or numbers from 1-5 to choose from. This extra step will cost you nothing extra and will ensure that I will be compensated for my time by the site.
Just following up, do you have any further questions?