More on the new Social Security rules

Thanks to alert reader and good friend Cameron Morgan of A&I Financial for sending me another good recap of the new Social Security rules.


Again, the new rules affect people who intended to use the File and Suspend method to claim Social Security benefits, but have not already done so.  If you have already started this method of payment, the new rules do not affect you.


File and Suspend allows a spouse to file for his/her Social Security benefits upon reaching full retirement age and immediately suspend payment.  However, since he/she has filed, the spouse can now start receiving a spousal benefit on the worker’s earnings record.  The first filer can then delay his/her payments until age 70, getting an 8%/year bump in benefits.


The new rules state that those who turn 62 in 2016 or later cannot use the File and Suspend technique.  Those who have reached full retirement age already or will before the end of April still have time to use the old techniques, but you must apply before the deadline.


Other strategies that are being eliminated under the budget act:

  • Individual File and Suspend to get a Lump Sum Retroactive payment
  • Claim Now and Claim More Later for dual income married couples
  • Claim Now and Claim More Later for divorced ex-spouses


For more information on these changes, check out the website of Michael Kitces, an authority on retirement planning, at



If these topics sound like they would be of interest to your employees, sales conference, or professional organization, contact me at 303-324-0014 or for more information.

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