Social security timing is now easier to use than ever. Five free social security claiming calculators wealth. The younger spouse who doesnt need to have turned 62 at the end of 2015 claims social security benefits based on his or her own earnings record. When is the best time to claim social security benefits. New social security strategies and the impact of the tax cut. Changes to social security claiming strategies wiser women. How to reduce the taxes on your social security benefits. With just a few change to their claiming strategy todd and jane were able to increase their lifetime benefits. Strategies for claiming social security benefits karen. Jul 23, 2015 created as a partnership between entrepreneur and software expert bill meyer, and the highly reputable financial planning researcher bill reichenstein who has published extensively on social security strategies in the journal of financial planning, ss analyzer is built to gather detailed information about the clients social security. How the bipartisan budget act of 2015 changes social security claiming strategies the bipartisan balanced budget act of 2015, has introduced substantial changes to social security law. Specifically, the new law has limited social security claiming strategies that would have resulted in more retirement income for your clients. Social security will pay you a premium if you wait until 70.
Strategies for claiming social security benefits karen chan. But since then, the trend has shifted decisively toward later claiming. If you were born between 1943 and 1954 your full retirement age is 66. Financial engines social security retirement calculator estimates social security benefits and produces claiming strategies for 1 a single person eligible for earned benefits only, 2 a single person eligible for earned benefits andor benefits based on a previous marriage, 3 unmarried couples eligible for earned benefits only, and 4 a. Does the risk of a law change make it unwise to wait until 70. To get the scoop on the potential impact of these changes i sent an inquiry to joe elsasser, a social security expert who patented a software application to. Dont claim without trying a social security calculator first.
Changes to social security claiming strategies the bipartisan budget act of 2015 passed by congress and signed into law by president obama, included the elimination of two social security benefit claiming strategies commonly known as file and suspend and restricted claims. Some popular file and suspend claiming strategies that allow married couples to claim larger social security benefits than congress intended will be eliminated. Statistically, its known that individuals tend to claim social security early. This is written by a team that also sells software to. Advanced social security claiming strategies and how they are.
Act of 2015 changes social security claiming strategies. For a typical working couple this could be 35 to 40 years of data each 70 to 80 numbers total that must be keyed in correctly for accurate results. November 2, 2015, made some changes to social security s laws about claiming retirement and spousal benefits. This strategy allowed one spouse the higher earner to file for a retirement benefit at full retirement age and suspend delay receiving the benefit. Dec 21, 2018 it takes years to qualify for social security benefits, whether you are claiming on your own work record or your spouses. A good social security calculator can help you get more benefits over your retirement years by providing you with customized claiming strategies that you might not have been aware of otherwise. Sep 02, 2016 there are some great online tools that help you do the math on the best social security strategy. After considering their earning history and individual situation their local your claiming strategies professional prepared a social security optimization report. The best free social security claiming calculators. It then goes on to explain the details for those who will be impacted. In fact, age 62 has always been the most popular claiming age.
If you delay claiming social security past your full retirement age, you will accrue delayed retirement credits that will increase your monthly payments by 8% for each year of delay. Changes to social security claiming strategies see disclaimer on final page the bipartisan budget act of 2015 included a section titled closure of unintended loopholes that ends two social security claiming strategies that have become increasingly popular over the last several years. The bipartisan budget act of 2015 public law 11474. Social security rewards americans who wait as long as possible to claim their benefits. Social security claiming strategies after the recent 2015. Marketwatch site logo a link that brings you back to the homepage. These overlooked social security claiming strategies can help you get bigger checks in retirement published fri, dec 21 2018 12. Many investors get so caught up in retirement investing they overlook an entirely obvious retirement factor social security benefits. When your training is cutting edge, you gain the competitive edge. Learn how you may be able to preserve your right to higher benefit payments.
Nov 30, 2015 the most important input for a social security calculation is your earnings history. There are some great online tools that help you do the math on the best social security strategy. For more on why its often better to wait until at least your fra before claiming social security, read viewpoints on. Nov 04, 2015 heres how the new federal budget bill changes some popular and lucrative game plans for maximizing benefits. Advanced social security claiming strategies and how they. For more background on changes in claiming strategies, the social security administration has set up a page for advisers. Earnings above the taxable maximum are not subject to. The social security administration makes one such calculator available on its website, but it doesnt analyze a variety of options or show you what claiming choices will result in you having more money. As a financial professional, you have contributed to a gradual rise in the average claiming age by educating your clients on strategies to maximize benefits.
These two strategies, known as file and suspend and. The following free calculators will help you decide. Maximize my social security is a powerful tool that offers personalized social security withdrawal strategies based on your real earnings history, expected future earnings and expected lifespan. Changes in social security claiming strategies not good news for many as many of us found out in late october, congress has put the kibosh on many social security claiming strategies that we at sta wealth have used for years to boost our clients social security lifetime benefits. Thanks to provisions in the federal budget signed into law late last year, some changes are coming to strategies that couples have used in the past to maximize social security retirement benefit payments. I tested 2 free social security retirement calculators, and heres what. Financial engines provides customized claiming strategies for married couples. To find that data, look under taxed social security earnings on your most recent social security statement. Financial engines social security retirement calculator. All of which has left a lot of preretirees scrambling.
But not everyone can wait most take it early so theres some tradeoffs. New rules for social security claiming strategies cbs news. And you dont want to leave money on the table by using the wrong. Couples who are eligible now have until the end of april 2016 to enter into a claiming strategy before the loopholes are closed. Trends in claiming social security early social security benefit claims jumped during the 2008 recession. Remaking retirement 8 questions about social security claiming strategies in the wake of new legislation, contributor mark miller explains the phaseout of fileandsuspend and.
Some advisers are using software programs to cut through the confusion and help clients. Social security claiming strategy for high incomes forbes. Weve deeply integrated the updated social security timing into covisums portal. Comparing the 2 leading social security calculators can i. Your personal plan to optimize your social security. Best personal finance software financial planning in 5 easy steps how. Try a social security calculator before claiming the balance. November 2, 2015, made some changes to social securitys laws about claiming retirement and spousal benefits. If youre approaching retirement and beginning to think about when and how to file for social security, its important to understand your options so you may feel confident in your claiming decision since benefit selection is a onetime opportunity. Use these free websites to estimate your social security benefits and find out what. Social security claiming strategy for high incomes. If you or your spouse reached age 62 by the end of 2015, you qualify for a social security claiming strategy called restricted application.
Social security changes present opportunities investmentnews. To help you make sense of these changes, and to help you decide how to respond, here are five key points to know. Learn how these interrelated programs may impact your finances in retirement. The 2015 act eliminated two social security claiming strategies for some. The social security income planner provides an overview of several different preselected claiming strategies, or you can input your own strategy to see how it stacks up against other optionsa particularly nice touch if youre one of those who likes doing things your own way. When can you redo a prior social security claiming decision. If you take social security benefits early at 62, you can still change your mind. Our software has been updated to reflect the new claiming rules, so reports are now available. Thanks to provisions in the federal budget signed into law late last year, some changes are coming to strategies. Ondemand web seminar new social security strategies and the impact of the tax cut and jobs act of 2017. Created as a partnership between entrepreneur and software expert bill meyer, and the highly reputable financial planning researcher bill reichenstein who has published extensively on social security strategies in the journal of financial planning, ss analyzer is built to gather detailed information about the clients social security. These social security claiming strategies can grow retirement.
We have revised our algorithm to bring it into conformity with the changes to social security that were part of the bipartisan budget act of 2015 enacted on november 2, 2015. Fortunately, there are free tools and websites to optimize your social security benefits, and you should add this search to your other retirement planning efforts. In 2015, congress voted to eliminate the popular fileandsuspend claiming strategy for couples claiming social security. These social security claiming strategies can grow.
There are, however, still planning opportunities and considerations for married couples to consider before claiming their benefits. Suppose youre the higher earner and want to maximize benefits by waiting until age 70 to begin receiving them. Thats because your benefits are inflationprotected and will last for the rest of your life. Her husband, bob, is collecting social security retirement benefits. Understanding the various claiming strategies can help you and your spouse optimize the social security benefits you have earned. He is also head of research at the software firm, retiree income inc. Find the best strategy to maximize lifetime benefits. Adding social security claiming advice to your practice presents an opportunity for you to bring additional value to.
Social security can form the bedrock of your retirement income plan. What to know about taking social security in the pandemic. If you change your mind within 12 months of signing up for social security, you can repay all the money you and your family have received. Creating smart social security claiming strategies for your clients is more complicated after the recent social security rule changes and new tax cut and jobs act. A comparison of free online tools for individuals deciding.
William meyer, founder of social security solutions, a provider of benefitsclaiming software, estimates that, on average, you can find up to seven. Legislation has worked its way through congress as part of the bill to raise the federal debt ceiling that would eliminate two claiming strategies used by many seniors. The decision can have lasting consequences for these couples over the course of their retirement. With updates in rules, new disability strategies, and strategies for those who are facing a terminal illness, the authors have again delivered invaluable tools for crafting social security retirement benefit claiming strategies. For married couples, when to claim is a critical issue that requires planning and analysis. You may have also seen in the news that the november 2015 bipartisan budget deal made some changes to the social security system. Best social security strategies for married couples. Big changes for claiming social security kiplinger. Apr 14, 2014 to get the scoop on the potential impact of these changes i sent an inquiry to joe elsasser, a social security expert who patented a software application to help identify optimal claiming strategies. Social security changes present opportunities once you recover from the shock of learning that the most valuable social security claiming strategies are being phased out. Big changes ahead for claiming social security the budget law is phasing out two popular benefits claiming strategies, but some lucky baby boomers will squeak in under the wire.
Changes in social security claiming strategies not good. By claiming at age 70 rather than at 62, retirees can boost their inflationadjusted income by 76 percent. The end of the fileandsuspend strategy is perhaps the most fundamental change with which advisers are grappling. Making correct decisions can mean tens of thousands in extra retirement dollars. Social security changes will hit couples, divorced women. Big changes to two key social security claiming strategies could hit millions of married couples and divorcees hard. Dec 21, 2016 offering clients the best advice about social securityclaiming strategies can be dauntingly complex. If you are getting close to retirement age you may have heard of social security claiming strategies such as file and suspend or a restricted application. Social security will automatically give that spouse the highest benefit hes. Do you know the best social security claiming strategies. Social security benefits are the largest retirement asset for the majority of americans. For starters, the social security claiming process has become even more complicated. Social security is a meaningful part of your retirement. Social security changes will hit couples, divorced women hard.
When to claim social security retirement benefits is one of the most important. This new law contained several provisions, but one specifically affects social security claiming strategies, and these changes could drastically alter the social security filing tactics many. Update for financial planners, a post on the ss choices blog, spells out who will and will not be affected. How a book led to the end of some social security claiming. Social security benefits are the largest retirement asset for. Social security is a retirementplanning element for most of us. It takes years to qualify for social security benefits, whether you are claiming on your own work record or your spouses. The expertise to coach clients through their claiming decisions is also a great prospecting tool. The core maximize my social security product is an economistdesigned application that looks at social security rules and regulations and your contributions over time to help you best understand how to withdraw and take your maximum benefits. Social security claiming strategies after the recent 2015 changes dallas financial planning association william reichenstein, ph. New social security strategies and the impact of the tax. Tougher rules for social security claiming strategies. This is written by a team that also sells software to compare social security claiming strategies. Two popular social security claiming strategies were severely limited this week when president obama signed the bipartisan budget act of 2015 into law.
The social security retirement calculator offered by financial engines does the best job of the free calculators because it actually considers a number of claiming strategies and clearly. Nov 07, 2015 big changes to two key social security claiming strategies could hit millions of married couples and divorcees hard. Aug 03, 2016 the abovereferenced comparison is something clients typically need to see in order to understand, and social security software designed to model strategies side by side will help you with this conversation. This act changes the rules regarding file and suspend and free spousal strategies.
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