Boomers Beware of Social Security Changes

You could lose a benefit that you may not even know you were entitled to Under the recently passed 2105 Budget. If you’re already taking advantage of this “loophole”, you are grandfathered in, so you won’t lose this advantage.


If you are or will be 66 on or before April 29, 2016, you may be able to take advantage of a strategy known as “File and Suspend and claim Spousal Benefit.” Briefly, you or your spouse can file for Social Security benefits at full retirement age (66). At that point, you can suspend them, which enables you to earn additional credits (8% per year) until you turn 70. If your spouse is 62 or older, your spouse can collect benefits based on your account during the period of deferral. In most cases, the benefit amounts to 50% of the benefit you would have received if you had not elected to suspend. This benefit is available unless your spouse elects to take his or her regular retirement benefit.


The choice to pursue this strategy depends on your ages, your incomes and should be considered carefully.


As of this date, the Social Security site, doesn’t have information about the new law, but does give explanations of the file and suspend feature of the existing law. Apparently the Social Security Administration hasn’t yet formulated exact rules and enforcement procedures.


More details about this, other Social Security information and Medicare information are available in my book, “Transcend – a Boomer’s Guide to Changes”.