Heres what you should know about the changes.
Those changes recently went into effect, and they axed some smart strategies that helped people maximize their benefits.
In other words, the longer you wait, the higher your payment.
The SSA refers to this asdelayed retirement credits.
The new changes closed the loopholes and eliminate these strategies.
Its a little confusing, I know, but heres how it worked in practice.
In other words, they file, take the spousal benefit, then suspend.
Meanwhile, Spouse #2 gets a check every month, but the main benefit earns interest.
You get the best of both worlds.
You also wont be able to receive spouse benefits on anyone elses record during that time.
When you suspend benefits, it’s possible for you to no longer receive spousal benefits.
The new rules dont apply to people born before April 30, 1950, however.
This way, both spouses could enjoy the annual 8% increase and still get paid every month.
Not anymore, though.
This deemed filing used to apply only before the full retirement age, which is currently 66.
Now it applies at any age up to 70, if you turned 62 after January 1, 2016.
Sounds fair enough, but heres the kicker: you basically only get the higher benefit.
Couples could lose out on hundreds or even thousands of dollars every month.
What Hasnt Changed
People have strong opinions about Social Security.
Many of the articles covering the changes seem to imply theres been a huge overhaul that eliminates basic perks.
This isnt the casespousal benefits and suspended benefits havent been eliminated or even reduced.
Those changes could make a big difference for a lot of retirees (or soon-to-be retirees).
The most important takeaway, though, is that delayed retirement credits still exist.
You still get an annual increase if you delay your Social Security benefits past your full retirement age.
And this perk is the backbone for most Social Security withdrawal strategies.
In other words, its still possible to strategize your benefits and get more out of them.
