A New Era for Social Security

The recently passed Bipartisan Budget Act of 2015 includes major changes to Social Security.  This legislation opens up significant opportunities for those who may be affected by these changes.

ELIMINATION OF THE SOCIAL SECURITY “CLAIM AND SUSPEND” STRATEGY This strategy currently allows spouses to file and suspend their own benefits, helping them earn 8 percent delayed credits per year from full retirement age until age 70 while their spouse is able to receive a higher spousal benefit. Under the new law, this will no longer be possible for those who have not started the strategy by May 1, 2016.

All Social Security recipients currently using this strategy, and those who begin before May 1, 2016, will be unaffected. After May 1, 2016, they must receive a Social Security check in order for their spouse to receive a spousal benefit.

ELIMINATION OF THE SOCIAL SECURITY “CLAIM NOW, CLAIM MORE LATER” STRATEGY The restricted application will be eliminated for all those who did not attain the age of 62 on December 31, 2015.  This effectively eliminates the “claim now, claim more later” strategy for those under the age of 62 prior to that date.

For those born in 1954 or later, the only way they will be able to receive a spousal benefit is if the spousal benefit is greater than their own Social Security benefit and if their spouse receives Social Security benefits.
These changes affect millions of current and future Social Security recipients. If you’re unsure how these changes could impact your retirement income, talk with your financial professional or give us a call.  We can be reached at 541-574-6464 or email financial.freedom@lpl.com. 

Content provided by the Principal Group. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. 

Julia Carlson is a registered Principal with, and securities are offered through, LPL Financial.  Member FINRA/SIPC.