Social Security Changes – They Taketh Away
On November 2, 2015, Congress passed new legislation governing social security benefits. We’ll be updating our recommendations as you near your social security start date, but here’s an overview of the changes:
- FILE AND SUSPEND GOES AWAY. This advanced technique—primarily utilized by professionals and their clients—allowed you to provide benefits to your spouse while you suspend and watch your own benefits continue to grow. This feature will be eliminated except for those individuals who have already filed and suspended or those who turn 66 before 5/1/16.
- RESTRICTED APPLICATIONS GO AWAY. Previously you could withdraw spousal benefits while delaying your own until age 70. Those under age 62 as of 12/31/15 will no longer be eligible for this benefit.
- NO CHANGE – At Full Retirement Age (66-67), the spouse with lower social security benefits will still be eligible for a minimum of 50% of their spouse’s benefits.
- NO CHANGE – If you delay collecting social security after your full retirement age, your benefits still increase by 8% per year until age 70.