What if you aren’t sure if you should take Social Security early or wait? If you are single, the answer will often depend heavily on how long you anticipate living, but none of us has the answer to that question. The Social Security Administration, however, allows Americans a way to hedge the longevity question through a do-over provision. With this approach, single individuals can claim their Social Security at age 62 and then conservatively invest all the money. When beneficiaries approach age 70, which is when monthly benefits max out, they can reassess to determine if it was wise to start the benefits early.
If the beneficiaries are in good health, they could repay all the benefits to Social Security and essentially start over. They could then claim benefits at age 70, which would generate the maximum monthly benefit. Clearly you would have to be highly disciplined to follow this strategy. It’s doubtful that many Americans could accumulate nearly eight years worth of checks without tapping into some of this money. There can also be tax consequences to this approach. If this Social Security strategy seems appealing, you should consult with your financial and tax adviser before proceeding.