Posted on 08/13/2024 7:47:14 AM PDT by napscoordinator
As of January 1, 2024, Social Security ended a spousal rule that allowed recipients to switch between their benefits and their spouse's to receive the maximum amount. The only people who can still take advantage of this rule are those who turned 70 on January 1, 2024, or were born before January 1, 1954.
Under the expired rule, the higher-earning spouse would claim spousal benefits at full retirement age while the other spouse claimed their benefit. The higher earner would then switch to their benefits at age 70, which maximizes the monthly Social Security payment because of the delayed retirement credits. In addition, the lower-earning spouse could claim a spousal benefit or keep their own, depending on which is higher.
With that rule no longer in effect, you need to find other strategies to maximize your spousal benefits.
(Excerpt) Read more at nasdaq.com ...
It irritates me that they can just willy nilly change the rules.
Nothing but a marriage tax, yet again.
Yes, its irritating, but not unexpected as SS has been on a path towards insolvency for 50 years. As posted on the other threads, dont rely on SS in retirement. If you have taken care of yourself via IRA’s, 401k’s (preferably Roth’s) or other pension sources, SS, if it still exists, is just ‘extra’ above what you planned for.
You mean Congressional theft!
“It irritates me that they can just willy nilly change the rules.”
Me, too. We saved for retirement for nearly 50 years. All of our planning was for a stable economy with 3% inflation. Then Biden & Co absolutely wrecked that.
Who the heck eliminated the “Spousal Rule”? The article doesn’t say how it got changed. Was it a law that got passed?
At least they didn’t wipe the rule out for everybody. My wife and I are grandfathered in, but her SS is half of mine (because she worked at the school district for 20 years and has a pension), so she would be the big winner if I croak first. If she goes first, I get no benefit.
But lucky her! Free of me at last and doubles her SS income! (if there’s not another rule that prohibits that because she has a county government pension).
I’m confused. So I’m 76 and Mr. M is 81. My SS is higher than his. So I can switch it so that he receives my SS and I receive his?
Who retired first?
I believe the rule states that he can switch to your SS level, once you pass.
If anyone has a differing interpretation, please clarify.
Mr. M retired and began taking his SS when he was 62.
Yes, government can print money, but they never make money. They only spend money (yours and mine). Government had no business constitutionally getting into the retirement industry. That said, they can and do legislate things like IRA’s and 401K’s that incentivize investment in the market, which without further hanky panky, is good for American business in general.
What I have said for several decades is that the government, knowing SS will eventually be insolvent, should have allowed an ‘opt out’ for future workers/retirees, where they would no longer contribute to SS, but take that money instead and put it into market investments under the 401k model, thus weening the government off future SS liabilities and infusing huge cash flow into the market. Doing so would generate much higher retirement return income than SS for workers, even if you only had 10 years to do so before retirement. For workers with 20 or more years until retirement, the benefit would be much greater than any SS in retirement.
I just checked with her. She says she isn’t eligible for this “spousal rule” because of her county government pension.
We are both taking SS now (we’re 73 and 72).
“It irritates me that they can just willy nilly change the rules.”
It seems more of a loophole that allowed well-connected people to get more benefits than others. I, for one, didn’t know of the loophole, and I’ve spent a decent amount of time studying the system.
Yeah , that’s why I never did a Roth IRA, they “can change the rules” on it too, and tax it!
Do a google search on "Spouse surviving benefit if primary did not reach full retirement age" Something like that.
Has nothing to do with spouse survivors benefits.
The bet is what will age out first - Social Security or FR posters...
I’m scheduled to start collecting next spring but I have a strong hunch I’ll never see a cent. We shall see. No worries.
“I have a strong hunch I’ll never see a cent”
Even after the Trust Fund balance goes to $0.00, hundreds of billions of dollars of FICA and SE tax will roll in each year.
Benefits will get reduced by about 20% on average, with most of the cuts on the higher monthly payout side.
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