This article also appeared in: HawaiiReporter.com
By J.R. Robinson
The deed is done, the die is cast. President Obama’s November 2, 2015 signing of the Bi-Partisan Budget Act introduced sweeping changes to Social Security that dramatically alter popular Restricted Application and “File & Suspend” claiming strategies. The following articles discuss the ramifications of the new social security retirement benefits claiming rules in greater detail.
New Social Security Rules to End Key Filing Strategies (Wall Street Journal)
The long and short of the new rules is that millions of Americans who are approaching retirement may receive far less in social security retirement benefits over their lifetimes than they may have anticipated and will necessarily need to rely more on their own savings to maintain their standards of living in retirement.
As a result of this change, working Americans born after January 1, 1954 may do well to boost their savings rates to make up for this lost income. Workers who will turn 66 prior to May 1, 2016 and married couples between the ages of 62 and 66 may wish to consult with a qualified advisor to better understand their claiming options under the new law.