Major Changes to Social Security Claiming Strategies

A backroom budget negotiation at the eleventh hour in order to save the country’s borrowing authority has left a Social Security claiming strategy that was starting to gain popularity due to the potential increase in benefits on the “cutting floor”. The two strategies that potentially increased a couple’s total social security benefits, “File and Suspend” and “Restricted Spousal Benefits” now only benefit those that were born within the right time period.

• If you are already 66 or will turn 66 within six months of the new law being enacted (expected May 1, 2016) you can still File and Suspend or:
• If you turn 62 by December 31, 2015 you will still be able to claim just a spousal benefit when you turn 66 as long as your spouse is either claiming Social Security at that time or had File and Suspended by May 1, 2016 and then switch to your higher benefit when you reach 70.

For all others, you are no longer going to be able to claim only a spousal benefit while letting your own benefit accrue delayed retirement benefits. Nor will you be able to File and Suspend in order to release benefits for family members while letting yours increase.

The good news is for those who have already deployed one of these strategies those are grandfathered in as viable strategies and benefits will continue to be paid as such. It is a complicated twist to an already complicated benefit so please call or email us with your specific situation and we will be happy to offer some clarity.