As most people collecting Social Security payments already know, there is no Cost-of-Living Adjustment (COLA) in 2016. The reason for this is because according to our government there was no increase in the Consumer Price Index (CPI-W) from the previous year. Over the past several months I have certainly had the opportunity to hear my clients voicing their opinions about this topic.
What I'm also finding in my client meetings is that most Americans don't know another big change to Social Security is coming in 2016. Due to the most recent budget bill that was passed one of the big changes to filing for Social Security is the elimination of the "File and Suspend" strategy that many retirees have used in the past.
This filing strategy allowed the spouse who reached full retirement age (currently 66) to file for Social Security and then immediately suspend the benefits. Their husband or wife could claim a spousal benefit while their deferred Social Security grew 8 percent per year until age 70.
After May 1, 2016 a person must file for Social Security and actually receive benefits in order for a husband or wife to get a spousal benefit. Those who are at least 66 or who will turn 66 by April 30, 2016 still have an opportunity to get in under the old file-and-suspend system and will be grandfathered in.
If you have any questions about this change or any other aspects of filing for Social Security Benefits, call the experts at The Legacy Council at (513) 442-2000.
What I'm also finding in my client meetings is that most Americans don't know another big change to Social Security is coming in 2016. Due to the most recent budget bill that was passed one of the big changes to filing for Social Security is the elimination of the "File and Suspend" strategy that many retirees have used in the past.
This filing strategy allowed the spouse who reached full retirement age (currently 66) to file for Social Security and then immediately suspend the benefits. Their husband or wife could claim a spousal benefit while their deferred Social Security grew 8 percent per year until age 70.
After May 1, 2016 a person must file for Social Security and actually receive benefits in order for a husband or wife to get a spousal benefit. Those who are at least 66 or who will turn 66 by April 30, 2016 still have an opportunity to get in under the old file-and-suspend system and will be grandfathered in.
If you have any questions about this change or any other aspects of filing for Social Security Benefits, call the experts at The Legacy Council at (513) 442-2000.
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