Did You Know Social Security Offers a Lump Sum Payment?

Social Security is set up to pay out monthly benefits. But did you know there is one way you could receive a lump sum payment?

Unlike pension plans, you cannot receive the current value of all your future payments in one single lump sum payment. However, according to Yahoo! Finance, you can get up to six months of Social Security benefits at once.

You can get a lump sum payment only if you have passed your full retirement age and have not yet filed. In that particular case, you can claim retroactive benefits for up to six months. After you receive your retroactive lump sum benefit, you’ll begin receiving traditional monthly payments. The article points out that, in most cases, receiving a lump sum payout only makes sense if you are facing a financial emergency — otherwise, you might as well have filed at full retirement age because the amount you receive is exactly the same.

The Seniors Trust is working to improve Social Security through passage of the Social Security Expansion Act. This landmark piece of legislation will increase monthly benefits, establish a fair cost-of-living adjustment (COLA), and secure the long-term solvency of the Social Security program, ensuring it is here for all retirees – today and tomorrow.