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New SS changes
Old 11-30-2015, 01:41 PM
 
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If you are already retired and collecting SS then you might not need to pay attention to this. If you are 61 or younger this year, then these new changes to retirement strategies might apply to you but not many people even know about them. Why? Because there was no public discussion and the legislators who sponsored the bill wouldnt even put their names on it due to the expected uproar when the affected public realizes what quietly happened behind closed doors. Obama pushed for it, legislators passed it, Obama signed it and now there is nothing that can be done about it. I know that I dont fully understand the ramifications of this bill but I wanted to give you a heads up. There is a lot of info online but here is one link that might help.

http://www.seattletimes.com/business...ement-strategy


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Old 11-30-2015, 02:07 PM
 
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Thank you. It wasn't a secret here. The file and suspend was a loophole that needed closing. I'm one of the people caught in the Medicare increase. Social Security is a good deal for the vast majority of us who now live long enough that we collect far more money than we ever put in, even allowing for interest.
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Old 12-01-2015, 01:46 PM
 
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Yes, Congress sneaked that SS bill right under our eyes. I waited until my full retirement age to take my Social Security. So the new rulings do not apply to me.
FYI: Most retirees do not wait until full retirement age. They take SS at age 62.
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Old 12-01-2015, 03:44 PM
 
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The fact that this bill had bi-partisan support at a time when Congress can't agree on the time of day tells you how necessary this bill was. The file and suspend "strategy" was an in-your-face attempt to work the system by a small group of people-mostly those who had been advised by financial planners who were thrilled about this loophole.

Another article about this from Forbes.

http://www.forbes.com/sites/janetnov...oomer-couples/
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Old 12-02-2015, 09:45 AM
 
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Everyone agrees that social security needs to be fixed. The issue with this bill was that it was done quickly, behind closed doors, without public input and the bills sponsors even lacked the courage to go public by signing the bill. Fixing Social Security, needs to be done like all other legislation, in hearings open to the public, based on testimony by a variety of experts, and with careful consideration of a range of options. Secret legislation should not be an option in a democratic society. Government by the people & for the people. Thatís what we deserve.


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Old 12-02-2015, 12:57 PM
 
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I've been hearing about this in AARP online newsletters for awhile. This was good public policy. I haven't found any mention of "secret legislation" when I've googled this subject. Outlawing the file and suspend (unintended) loophole seemed a no brainer. They grandfatherered in those who had already used (and I do mean used!) the "strategy" that resulted in them having a windfall at the expense of the SS system and the vast majority of citizens.

Those of us turning 65 this next year and later will be bearing the burden of shoring up the Medicare system. That's me. It has to be done and since there was no COLA to SS this year, they can't raise Medicare contributions for those who already have it due to existing federal law.

Please post the info you have about secret legislation. I'd like to see it.

AARP put this out more than a month ago.

http://blog.aarp.org/2015/10/30/thre...ew-budget-act/
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Old 12-02-2015, 03:06 PM
 
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I am also very surprised that the media has not given this more attention. It sounds like this complicated legislation to eliminate the loophole will affect several different categories of people (upper income, divorcees, soon to retire parents with disabled dependents) but benefit the many. I will be happy to go back through my search history to try to find that article. No promises though because I looked at a whole lot of different pieces of info. Meanwhile here is a link to an interesting article that explains who these changes affect.

http://www.investmentnews.com/articl...curity-changes

Last edited by MathWA; 12-02-2015 at 03:24 PM..
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Old 12-02-2015, 03:38 PM
 
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AARP posted that they are pleased with the latest Social Security legislation but I noticed that they still recommend the "file and suspend" strategy on their Retirement Calculator as there is still some time left to start this.
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Help me see if I understand
Old 12-03-2015, 12:54 PM
 
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So...last January I began receiving my spousal benefit as I turned 60 & that is when you qualify for spousal benefits. I was told by SS rep at that time that when my benefit reached an amount more than my husband's spousal benefit, I should switch to my own SS. She estimated I would be 70 before that happened & would switch to my own therefore at 70. Now does it mean I will have an average of mine and his? Is that what "blended" means? Probably should have read this post again before I put this question out there.

Thanks for clarifying for me if you can!
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Old 12-03-2015, 02:16 PM
 
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You must be a widow because its my understanding that is the only way someone can get spousal benefits before age 62. While you are collecting your hubs benefits and not yours then your SS increases each year. Your social SS rep meant that it will take until age 70 for your benefits (with interest) to increase enough to equal your husbands benefits. Think of this like money in a savings or investment account that increases in value over time. It is my understanding that widows or widowers will not be affected at all by the file and suspend changes that are being discussed here but you should check with your SS rep. My guess is that blended in this situation means that you are receiving your deceased husbands benefits until you switch over to yours. Not an expert but sounds like widows and widowers should be able to continue with their plans for benefits.


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Old 12-03-2015, 04:00 PM
 
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Thanks MathWA. Yes, I am a widow. My husband passed 5 yrs ago Dec. 1st. I was able to retire last year because I qualified for his widow's benefit. He was only 55 when he died from ALS. I lost his retirement from his employer (he's retired after 32 yrs) and I was so grateful to receive this SS benefit. I didn't know it was possible until when I was 3 months from turning 60--age when I could begin drawing it.
I appreciate your explanation. I hadn't been aware of this file and suspend thing before. I'm glad someone is keeping an eye on things. Thank you!
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