Social Security handing out freebies

The recent article about Social Security taking a hit was quite interesting. However, although more and more workers are applying for early benefits (thus receiving smaller monthly payments), there are still many who choose to wait to collect after full retirement age.

I was one of them. I applied for Social Security about 11/2 years after my full retirement age of 65 years, 6 months. The additional monthly amount I received didn't amount to very much and, frankly, I would have waited until age 70 but a medical problem forced my early retirement. When I did apply, I was told the exact dollar amount I would be receiving monthly. But then, surprise! I would receive a lump-sum payment of $11,000. Why? Well, that was the dollar amount I had "lost" by waiting. So I was entitled to that money.

I don't know if there's a ceiling to the lump-sum payment one would receive by waiting, but these payments may be one reason Social Security is in trouble. Although my personal $11,000 doesn't amount to much in the Social Security coffers, how many other retirees also received a lump-sum payment because they chose to wait? It seems to me that, when a person chooses to wait beyond full retirement age to collect, those monthly payments that were not collected should not be reimbursed. This could conceivably save Social Security millions (if not billions) of dollars.

With all I've read about Social Security possibly running out of money, I think about my children and grandchildren who might not be able to collect Social Security because I and countless others received unexpected reimbursements because we chose to wait to collect after retirement age. Wouldn't Social Security be better served by keeping this money in its coffers? I would think so.

Judith A. Carlson

Des Plaines