Frequently Asked Questions About The New Social Security Law

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

In the financial world, one of the largest pieces of news that broke last month was the new Social Security law. For those of you who are unfamiliar with the latest updates to Social Security claiming strategies, Congress recently eliminated file-and-suspend for married couples and the restricted application claiming tactic (a strategy that has been commonly used by divorcees). But since this topic can get pretty complex, we know that many of you may have questions regarding the new law and what this means for your future. That's why below, we're covering some FAQs about the changes; take a look:

Who is affected by the elimination of file-and-suspend?

Those individuals who have not reached 62 years of age by the end of this year (2015), or those who have not already started to file a claim will be affected by this change. If you will reach full retirement age within the next 6 months, you will have access to this benefit until Spring of 2016.

What is changing about restricted application?

Once the new law takes effect, only those individuals born on January 1, 1954 or earlier will be able to utilize the restricted application claiming strategy. If you are not 62 by the end of 2015, Social Security Timing says you will "automatically get the larger of the two benefits" (according to USA Today).

What is the next step for those who planned to use these strategies?

If you were banking on using file-and-suspend or the restricted application strategy, now is the time to speak with your financial planner about updating your retirement plan. Although these strategies may not be completely eliminated for you depending on your age, it's critical that you find out for sure before you assume that you will still be able to utilize them in the future. 

At American Investment Planners LLC, we understand just how much of an impact these changes may have on your plans for retirement. If you have additional questions about the new Social Security law or would like to speak with a financial planning expert about what changes must be made to your current retirement plan in order to receive the greatest benefit, please give us a call at (516) 932-5130 today. Also, don't forget to connect with us on social media, as we'll always share any new news we discover on this topic!