New Delhi, April 10 -- Millions of Americans nearing or entering retirement could be entitled to thousands in retroactive Social Security payouts. This is due to an obscure regulation permitting certain retirees to collect up to six months of backdated benefits, according to Newsweek.

The provision targets individuals who postpone filing for Social Security until after they attain their full retirement age (FRA).

Rather than beginning payments upon their application date, eligible senior citizens can request the Social Security Administration (SSA) to backdate their commencement. This triggers a significant lump sum for benefits they were previously eligible to receive, reported Newsweek.

For those on fixed budgets, timing errors durin...