Millions of Social Security Recipients May Receive Retroactive Payments—Here's What You Need to Know

The Social Security Administration (SSA) is responsible for sending out Social Security payments to everyone who receives them each month. However, it looks like some folks are going to get a lot more than they bargained for in their next payment, thanks to the date that they actually filed to receive their first payments.

Curious to know if you’re one of the millions of people who could be owed an bigger than normal check from Uncle Sam? Keep reading to find out whether you qualify for back pay and, if so, what you need to do to get your money.

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The Social Security Administration May Owe You Money

According to Newsweek, millions of people may be owed money by the SSA. It sounds like the windfall is going to people who waited until well after their full retirement age (FRA) before starting benefits.

That means if you reached your FRA, but kept working for any period of time after that, you could be owed retroactive payments from the date you would’ve hit your FRA to the date you finally filed. For some, those payments could add up quite nicely, totaling thousands of dollars in retroactive payments.

FRA is 67 for those who were born in 1960 or after, so if you’ll have 67 candles on your birthday cake this year, you’ll want to pay especially close attention to this news.

Related: The 5 Best States For Social Security Tax Breaks In 2026

How to Receive Backed Social Security Payments

Think you may fall into this group? If so, you’ll need to reach out to the SSA to ask the administration to backdate your start date to when you reached FRA, which will trigger the lump-sum payment for the months that you missed.

However, there is a catch. The SSA will only allow you to claim up to six months’ worth of these missed benefits, so if you waited until more than six months after you reached your FRA to file, you will only be able to collect half a year’s worth of payments.

Related: This Genius Simple Move Could Give You Bigger Social Security Checks—for Life

Also, you cannot apply for these payments after you reach the age of 70. That’s because Newsweek says this is when the delayed retirement credits no longer accrue, which means you won’t be able to take advantage of this payday.

Lastly, by using this option, you could lower the amount of benefits you receive in the future, which means that you may only want to consider opting for the lump-sum payment if you need to get your hands on some quick money up front, instead of getting bigger checks every month for the remainder of your retirement.

“The trade-off is a permanently lower monthly benefit going forward,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek in an interview. “Many people overlook this option, but those facing large expenses may find it useful if they understand the long-term impact.”

So, depending on your financial situation, this windfall could be a game-changer or something that you’re better off leaving alone.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.