This Social Security Spousal Rule Is Officially Finished in 2024 — But These 3 Strategies Remain

Nasdaq ^ | 10 August 2024 | Eaton Vance

[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With that rule no longer in effect, you need to find other strategies to maximize your spousal benefits.

[central_va]

Benefits will get reduced by about 20% on average,

I doubt that, just more deficit spending.

[Ann Archy]

?

[bert]

1942

[napscoordinator]

Totally does.

[stylin19a]

The change to this rule enacted under Pres. Clinton, went into effect under Pres.Obama.
I looked at this and couldn’t believe my eyes. Were we that dumb ? I had to call SS to make sure what my eyes were seeing.

We took advantage of it. I filed at FRA(66)then my wife(66) filed under my benefits and got half of my monthly benefit until she turned 70.

She then applied for her own benefit which had earned 8% more every year she didn’t take it between 66 and 70.
She banked her monthly check. Nice little chunk of change.

America, what a country.

[Tai_Chung]

So the only thing that changed is that Social Security won’t switch you from your own SS to your spouse’s SS in order to maximize benefits? You have to do it manually?

[DesertRhino]

Hey, we have to pinch pennies. It’s not like retirees are migrants or Ukrainians or something where we just shovel the money with no accounting,

[Manic_Episode]

"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."

That's assuming an intact economy, country and world.

Much can happen in a short time.

If our govt steals another election all bets are off.

If WWIII starts all bets are off.

If the rapture occurs I will accept an early upgrade and promotion and SS will be rendered silly.

It wouldn't take much of a hiccup to black Friday our economy or worse.

I am in Gods hands and feel quite secure regardless.

[Vesuvian]

I agree, but I’m gambling on them eliminating the Roth going forward.

[Raycpa]

This is not new news.

The Bipartisan Budget Act of 2015 made some changes to Social Security’s laws about filing for retirement and spousal benefits.

https://www.ssa.gov/benefits/retirement/planner/claiming.html#:~:text=Deemed%20filing%20applies%20at%20age,benefits%20equaling%20the%20higher%20benefit.

[lucky american]

This really ticks me off. I’m not going to live much longer and I was hoping my husband could get my benefits which are much higher than his. I stayed working and planned on retiring Jan 2025. I’ll be 70 if I make it that long. I guess. I’ll retire tomorrow.

[Political Junkie Too]

Okay, so this is NOT the spousal benefit where the lower SS recipient can get 50% of the higher benefit when that person starts their benefit at full retirement age?

-PJ

[John S Mosby]

FRA higher earning spouse claims SS at age 65 (the then current Full Retirement Age), continues with benefits as expected. Lower earning spouse waits until 70 to make claim for personal benefits, and at the same time files for Spousal Benefits. Spousal benefits claimed by the lower earner, are calculated to a max of 50% of higher earners benefits monthly (and do NOT reduce the higher earner’s benefits paid out monthly). The calculation is done by taking the lower earner’s individual benefit gross amount and adding the amount needed to arrive at 50% (capped) of higher earner’s benefit. The cap is arrived at depending on how much lower benefit the lower earner would get vs. the higher earner on a sliding scale. If the lower earner benefit is only a little bit under the higher earner then less is added, if any. Say instead of 500/month lower, added to that is grossed up to 50% of the higher earner’s, which, if it’s 2000/month, 1000 would be added to the lower earners benefit (ie.50%). The higher earner’s benefit amount is not reduced by this. This entire process was actuated by a Congressional Act, which ended for those having a birth year 1955 and later years.

Survivor spouse benefits,if the higher earner spouse dies—are applied for and the lower earner spouse recieves the full amount of higher earner’s benefits, moving forward.

The above situation is not what has been removed from the system. What has been removed is the “switcheroo” technique which was a slick way to gainsay the payouts. Burning up the systems actuarial regime.

[DesertRhino]

She says she isn’t eligible for this “spousal rule” because of her county government pension.

That government pension “windfall” rule came in during the 80s. They say it isn’t fair. The do however say it’s fair for illegal aliens to get it.

[ridesthemiles]

FIGURE OUT HOW MANY ILLEGALS ARE USING MEDICARE & OTHER SOC SEC BENEFITS...

WHICH THEY NEVER PAID A PENNY INTO.

[central_va]

You have Freepers thinking when their spouse dies they will no longer get their SS. THAT IS NOT TRUE AND YOU KNOW IT.

[central_va]

Does not.

[napscoordinator]

It’s 100 percent true.

[central_va]

You are scaring people to death. You are really doing FR a great disservice.

You do not lose your spouse's SS benefit when they die.

[lepton]

The whole thing is willy-nilly. They don’t actually have to pay out any particular amount. That’s just set by policy/budgeting.