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Social Security: The Deadline Is Fast Approaching!

Social Security: The Deadline Is Fast Approaching!

April 21, 2016

It has been a crazy and very busy few months fielding phone calls, emails and letters from panicky people worried about beating the April 29, 2016 deadline for claiming Social Security benefits under existing rules.  And as the deadline for one of these very popular election strategies approaches, the questions are coming in more rapidly.  So, I thought I would send out this urgent article to address it and help provide the proper answers to people. 

When Congress eliminated two of the popular Social Security election strategies late last year, they put in a ‘phase out’ provision as to when the new laws would take effect.  The phase out period for one of these strategies, “File-and-Suspend” ends on April 30th of this month.  So, if you qualify, you have to act by April 29th to take advantage of this option. 

The file-and-suspend claiming option allows couples the opportunity to maximize their combined benefits. Once one spouse reaches full retirement age (currently 66), that person can file for Social Security and then immediately suspend the benefits. Then, their husband or wife can claim a spousal benefit while their deferred Social Security grows 8 percent per year until age 70. This is essentially a “have your cake and eat it too” strategy, which is essentially why the Government is taking it off the table. 

So, in order to be able to take advantage and use the File-and-Suspend strategy, you have to be 66 years of age or older before the deadline of April 29, 2016.  Please note that even if you qualify but neither spouse is ready to collect Social Security benefits at the current time, you still have to File-and-Suspend by the deadline so you can utilize this option in the future!

I know this can be confusing.  To help you better understand and know if you need to make a move before the deadline, feel free to reach out to us at Retirement Planning Center at (970) 663-3211 or info@rpcenter.com.

Investment Advisory Services offered through Brookstone Capital Management LLC, a Registered Investment Advisor. Investments and/or investment strategies involve risk including the possible loss of principal. There is no assurance that any investment strategy will achieve its objectives. This information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Content is provided by third parties for informational purposes only and is not a solicitation to buy or sell any products mentioned. Jaris Hansen and Retirement Planning Center are not endorsed by or affiliated with the Social Security Administration or any government agency.