Social Security Strategy Cut Off for Many
Source: yahoo ·
The Bipartisan Budget Act of 2015 eliminated a strategy for boosting Social Security checks, now unavailable to those born after January 1, 1954.
Key takeaways
- The restricted application strategy for Social Security benefits is no longer available to those born after January 1, 1954.
- Couples can still delay the higher earner's benefit to 70 for 8% annual growth, but cannot collect one benefit while the other grows.
- Deemed filing rules force spouses to claim both spousal and personal retirement benefits simultaneously.
- The strategy was closed to new claimants by 2026, affecting those born after the cutoff date.
- Couples can still sequence survivor benefits separately from retirement benefits.
Why it matters
The closure of the restricted application strategy has significant implications for couples approaching retirement age, as it limits their ability to optimize their Social Security benefits. This change will likely lead to reduced benefits for some individuals, particularly those born after the cutoff date. As a result, it is essential for couples to reassess their claiming strategies and consider alternative approaches to maximize their benefits in the face of this new reality.
What to watch
- Earnings dates for the affected individuals, as they will need to reassess their Social Security claiming strategies.
- Regulatory steps from the Social Security Administration to clarify the new rules and provide guidance to claimants.
- Potential changes to the Social Security claiming process, as lawmakers continue to evaluate the impact of the Bipartisan Budget Act of 2015.