Social Security Changes

Just like that, two strategies that have helped our clients take advantage of Social Security spousal benefits will be wiped out!

You probably haven't heard but the Bipartisan Budget Act of 2015 made dramatic changes to several well known Social Security claiming strategies.

Two key Social Security “loopholes” will terminate shortly: File and Suspend and Restricted Applications for Spousal Benefits are going away. 

The new rules for restricted applications will not immediately apply to all Americans.  Workers born before January 1, 1954 will be “grandfathered in” and still have the option to file a restricted application.

If you turn 62 on January 2, 2016 you could receive $60,000 less in spousal benefits than the person sitting next to you who turns 62 in 2015.

For the next 6 months, anyone over full retirement age will be able to file and suspend and have the spouse claim the spousal benefit, same as always, but after six months file and suspend will go away.

For those of us who help clients with retirement planning these significant changes literally save the government billions of dollars of Social Security payouts.  Is this what you sent your representatives back to Washington to do?

There are so many things wrong with the way Congress crammed the Social Security changes into the budget deal and passed it before anyone could notice.

The rapid changes will leave some people unaffected but most will be worse off, depending on the turn of the calendar.

If you need help with retirement income planning now would be the best time to examine in detail your Social Security options.

Please let me know if you’d like additional information.

Thanks,

Cory Payne

Beehive Insurance Retirement Planning Services

302 West 5400 South #101

Murray, UT 84107

801-685-6875 Office

801-685-2899 Fax

cpayne@beehiveinsurance.com