Page 18 THE MALDEN ADVOCATE–Friday, October 24, 2025 Savvy Senior by Jim Miller Can You Get a Lump Sum Social Security Payment? Dear Savvy Senior, I’ve read that the Social Security Administration offers a lump-sum payment to new retirees who need some extra cash. I haven’t yet filed for my retirement benefits and would like to find out if this is true. What can you tell me? Born In 1958 Dear 1958, There is indeed a little-known Social Security claiming strategy that’s been around for many years that can provide retirees a lumpsum benefit, but you need to be past your full retirement age to be eligible, and there are financial drawbacks you need to be aware of too. First, let’s review the basics. Remember that while workers can begin drawing their Social Security retirement benefits anytime between ages 62 and 70, full retirement age is 66 and 8 months for those born in 1958, but it rises in two-month increments every birth year to age 67 for those born in 1960 and later. At full retirement age, you are entitled to 100 percent of your benefits. But if you claim earlier, your benefits will be reduced by 5 to 6.66 percent every year you start before your full retirement age. While if you delay taking your benefits beyond your full retirement age, you’ll get 8 percent more each year until age 70. Lump Sum Option If you are past full retirement age, and have not yet filed for your benefits, the Social Security Administration offers a retroactive lumpsum payment that’s worth six months of benefits. Here’s how it works. Let’s say for example that you were planning to delay taking your Social Security benefits past your full retirement age of 66 and 8 months, but you changed your mind at 67 and two months. You could then claim a lump-sum payment equal to those six months of benefits. So, for instance, if your full retirement age benefit was $2,500 per month, you would be entitled to a $15,000 lump sum payment. If you decided at age 67 that you wanted to file retroactively, you’d get only four months’ worth of benefits in your lump sum, because SSA rules prohibit you from claiming benefits that pre-date your full retirement age. Drawbacks The downside to this strategy is that once you accept a lump-sum payment, you’ll lose the delayed retirement credits you’ve accrued, and your future monthly retirement benefit will be reduced to reflect the amount you already received. It will also affect your future survivor benefit to your spouse or other eligible family members after you die. You may also need to consider Uncle Sam. Depending on your income, Social Security benefits may be taxable, and a lump-sum payment could boost the amount of benefits that are taxed. The federal government taxes up to 50 percent of Social Security benefits at ordinary income tax rates if your combined income – defined as adjusted gross income plus nontaxable interest income plus half of your Social Security benefits – exceeds $25,000, and up to 85 percent of benefits are taxable if combined income exceeds $34,000. For married couples, the comparable income thresholds for taxing benefits are $32,000 and $44,000. To help you calculate this, see IRS Publication 915 “Social Security and Equivalent Railroad Retirement Benefits” at IRS.gov/pub/irs-pdf/p915. pdf, or call 800-829-3676 and ask them to mail you a copy. In addition, if the lumpsum payment of retroactive Social Security benefits boosts your yearly income over $106,000 (or $212,000 for married couples filing jointly), it will increase your future Medicare premiums too. See Medicare.gov/Pubs/ pdf/11579-medicare-costs. pdf for details. Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior. org. Jim Miller is a contributor to the NBC Today show and author of “The Savvy Senior” book. 1. On Oct. 24, 1940, the 1938 U.S. Fair Labor Standards Act mandated what workweek hours? 2. “Broom-Stick Bunny” (1956) has the animated characters Witch Hazel and what rabbit? 3. What New England city has a Guinness World Record for “most lit jack-o’-lanterns on display”? 4. On Oct. 25, 1955, the first of what type of oven want on sale? 5. Which voice assistant came first, Alexa or Siri? 6. What tale did Mary Shelley devise during a ghost story competition among friends? 7. On Oct. 26, 2005, what team with a name including a plural form of a clothing item won the World Series? 8. What two men are associated with the names of famous chocolate candies? 9. Washington Irving’s short story “The Legend of Sleepy Hollow” is set on what river? 10. What U.S. president appeared on an episode of “Comedians in Cars Getting Coffee”? 11. On Oct. 27, 1966, what Peanuts show aired (first major TV Halloween special)? 12. The Deep Blue computer is famous for what? 13. October 28 is International Animation Day; the comedy “Wallace & Gromit: The Curse of the Were-Rabbit” debuted in the USA in October when: 1954, 1966 or 2005? 14. What is the world’s largest toothed predator (appears in a famous 1851 book)? 15. Is Halloween celebrated in Mexico? 16. October 29 is National Cat Day; what Frenchman was brought out of retirement to sing the title song in the 1970 animated musical comedy film “The Aristocats”? 17. Who sang “Superstition” and appeared as a witch doctor during Super Bowl XLVII? 18. The animated shorts “Duck Amuk,” “What’s Opera, Doc?” and “One Froggy Evening” were called “culturally significant” by what arm of the U.S. Congress? 19. In what book does a godmother say “Run into the garden, and bring me a pumpkin”? 20. On Oct. 30, 1958, who decorated the White House for Halloween for the first time? ANSWERS 1. 40 2. Bugs Bunny 3. Keene, N.H. (30,581 in 2013, breaking Boston’s 2006 record) 4. Domestic microwave 5. Siri (2011); Alexa debuted in 2014. 6. “Frankenstein” 7. Chicago White Sox (“sox” is a plural form of sock.) 8. Milton Hershey and Harry Burnett Reese 9. Hudson 10. Barack Obama 11. “It's the Great Pumpkin, Charlie Brown” 12. Beating a World Chess Champion 13. 2005 14. Sperm whale (“Moby-Dick” book) 15. There is some trick-or-treating; however, the country mostly celebrates Day of the Dead on Nov. 1 and 2. 16. Maurice Chevalier 17. Stevie Wonder 18. Library of Congress 19. Charles Perrault’s “Cinderella; or, The Little Glass Slipper” (1697) 20. First Lady Mamie Eisenhower
19 Publizr Home