There were a couple of loopholes to get pay raises through social security; however, that will all change May 1st. On Nov. 2, 2015 the Bipartisan Budget Act was signed which suspended the File and Suspend and Restricted Application for anyone between 62 and 66.
The extra benefits are over for those who knew how to take advantage of the system, but here are some ways to cope and get the most out of your social security.
As it turns out 74% of social security recipients collect early, according to the Social Security Administration. This may not be a strategic decision, so if they begin to regret it, there is still hope. If you pay back the sum you received, then you will be viewed as a recipient who never collected early.
Don’t be Dependent
There are times when you may need supplemental income or benefits for a minor child. In this instance, you can take out social security early. Make sure you eventually stop receiving money once you are back on your feet. Once it is suspended, you’ll earn delayed retirement credits ending when you turn 70.
Restricted App: Listen Up If You Are Married and One Spouse Is 62 or Older
The Bipartisan Budget Act of 2015 is transitioning out the loophole that allows a spouse to collect earnings while the other allows lets their benefits grow until 70. The spouse that let their funds grow will need to switch back to increased benefit at age 70. In order for to still file for a restricted application you must have been born before Jan. 1, 1954 and the spouse who is taking out benefits will need has be collecting benefits or have both filed and suspended before May 1.
More Benefits For Married Couples Both Under 62
The best strategy for a married couple is to have the higher earning spouse wait until they are at least 70 to collect benefits. That spouses’ benefits will become the survivor benefits if that person should decease and it will increase 8% every year between full retirement age.
Collecting for Widows or Widowers
If the spouse that survives has a lower earned benefit than he or she should begin collecting at 62. After the recipient has reached retirement age, he or she should switch over to the survivors’ benefits.
Another option for widows or widowers is to take the survivor benefits as soon as possible if you have similar earning records. This can be taken out at 60 and then their own funds will grow until 70 when they can switch over to their own benefits.
Restricted Application: Listen Up Divorcees
If your marriage lasted for 10 years you will be treated the same as married couples, for the most part. The strategy mentioned earlier one spouse could only use regarding restricted application.
Be sure to work with a financial planner and social security lawyer to determine all the benefits you qualify for.
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www.SocialSecurityLawOC.comKenneth G. Marks has been practicing personal injury law since he was admitted to the California Bar in 1981.