General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDoes anyone know what this is all about regarding Social Security?
Almost every day I see a blurb on various web pages about a big change in SS taking effect in April. Is this some advertising hoopla or is there due to be some kind of a change?
I don't know if these 'blocks' of information are some kind of an ad or if the information is something I should know.
Any thoughts?
dixiegrrrrl
(60,010 posts)I have not heard anything.
notadmblnd
(23,720 posts)which in my opinion amounts to a cut. But other than that I see nothing of great significance.
https://www.ssa.gov/news/press/factsheets/colafacts2016.pdf
bobalew
(321 posts)Paper Roses
(7,473 posts)I do, however, wonder why there will be no cost of living increases. I know part of the criteria for a COLA is the price of gas. Since it has gone way down, the future is probably bleak. The powers that be who make decisions regarding benefits don't take the cost of 'real life' into consideration.
bemildred
(90,061 posts)saturnsring
(1,832 posts)former9thward
(32,017 posts)Using the file-and-suspend strategy, a couple is able to maximize their benefits even further. Let's say the two have both reached their full retirement age and one has been the primary earner. If the primary earner is eligible for a certain amount of Social Security benefits (for example, $2,000), then their spouse would be eligible for half of that amount. Because these benefits are tied to the primary earner, the spouse cannot collect their benefits until the primary beneficiary files for Social Security. The primary earner in this scenario can file for benefits at full retirement age, allowing for their spouse to receive their $1,000. The primary earner can then suspend their own benefits until they reach the age of 70 to take advantage of the added suspended retirement benefits. This strategy will no longer be available when the new legislation take effect on May 1.
Restricted application which is still going to be available for another four years is where an individual who is at least full retirement age, has not filed for any benefits previously and whose spouse has established a filing date (and could have suspended), files for just the spousal benefit that is based upon the spouse's record. If the individual does not specifically file a restricted application, he or she will need to file for all benefits currently available to him or her.
What this change means for you. First, it is important to note that if you are already receiving benefits, you will not be affected by the changes. But, if you were born on or before May 1, 1950, you will need to take action now to evaluate your options. Should you wish to take advantage of the current file-and-suspend rules you must make your election to suspend your benefit by April 30, before the new ruling takes effect on May 1. But, do not wait until the last minute you can file three months in advance of your birthday. Additionally, those who will turn 62 by December 31 can still use the file-and-suspend strategy when they reach their full retirement age of 66. Another noteworthy date is those who were born on or before Jan. 1, 1954. If you fall into that category, you will still be able to file a restricted claim of spousal benefits while allowing your own benefit to receive delayed retirement credits. If you fall outside of these cut-off dates and had factored these claiming strategies into your retirement income plan, you will want to revisit your Social Security options to make adjustments to your retirement income plan.
http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/articles/2016-01-18/how-to-navigate-social-security-and-optimize-your-benefits