Social Security says no "do-overs"

In the interest of deficit reduction, the Social Security Administration now restricts an option that has allowed seniors to retire early and still come out ahead.

The "do-over" method allowed a person to retire early and collect reduced benefits. After a few years of collecting reduced benefits - and investing them - the recipient could repay benefits and refile, receiving a new, higher benefit. It was a good deal for early retirees who could afford to pay back benefits. But from the government's government's perspective, it was an interest-free loan. The new rules set a twelve-month limit for withdrawing the application for benefits. Read more here.

Even with this strategy eliminated, there are a number of other considerations Baby Boomers should think about as they enter their retirement years, especially in this economic climate.  Factors that must enter into your strategy include the benefits one's spouse will receive and when your spouse will file for benefits; whether you will continue to work; overall anticipated income; life expectancy; taxation of benefits; and a host of other factors. Remember, your decisions about how and when to collect Social Security may also impact on survivor benefits. All of these decisions should be made in consultation with your financial planner and your estate planning attorney.