Clc,
You are applauding Congress for closing loopholes with
bipartisan support. I think most of the bipartisan support
was for the last minute passing of legislation that would
avoid a government shutdown in the fall of 2015. Most people
didn't know that the those social security measures were
buried in the middle. I'm not saying that those loopholes
were good or bad for the system.
Remember, those unintended loopholes were enacted by CONGRESS
when they passed the Senior Citizens Freedom to Work Act of
2000. They wanted to enable people to work after their full
retirement age and still collect SS benefits. It took
Congress 15 years to correct the resulting unintended
loopholes with the Bi-partisan Budget Act of 2015. So, maybe
they should NOT be given too many pats on the back. There are
SS experts that say the elimination of these unintended
loopholes are unfair to certain categories of retirees and
negatively affects them.
The Social Security system is a hodge-podge of complex rules
that no ONE person understands. Many experts say the system
is NOT fair in many situations. One of which is the fact that
SS is funded by employee taxes and matched by employers. So
it's money that's already been taxed. Now the SS recipients
pay taxes on their benefits (unless SS is their only source of
income). So, I think the "sleight-of-hand" comment is
unwarranted.
On 4/02/16, clc wrote:
> I was telling Jen about claiming only one record. I was
> not correcting a quote from you.
>
> I am aware that file and suspend is grandfathered in for
> some people. I am also glad that Congress closed the
> loopholes with bipartisan support when they are unable to
> do much of anything else with bipartisan support. I have
> heard financial advisers absolutely giddy over the words
> "file and suspend". Interesting how many prosperous
> citizens who condemn the poor for what they see as abusing
> the welfare system have felt no shame whatsoever in
> getting more than their fair share on Social Security
> through financial sleight-of-hand.
>
>
>
>
>
> On 4/02/16, Retired Teacher - S.S. buff wrote:
>> To clc,
>>
>> In your 2nd paragraph you wrote, "my understanding is
>> that you
> can
>> claim SS on either your own record or your spouse's but
>> not
> both."
>>
>> I did NOT say that you can claim both. I restate what I
>> said
> in
>> earlier post that people can collect different types of
>> benefits--but not simultaneously. They can start with one
>> type and switch to another when they are get bigger--but
>> it has to happen at the right time. Example: If you are
>> divorced (after having been married for 10 or more years)
>> and turn 62 no later than Jan. 1, 2016, you can still
>> file just for your divorce(e) spousal benefit at full
>> retirement age and wait until 70 to collect your own
>> retirement benefit.
>>
>> See item #3 on the following website:
>> www.pbs.org/newshour/making-sense/12-secrets-maximizing-
> social-security-benefits-new-rules/
>>
>> The 2 strategies that are being phased out in the
>> Bipartisan Budget Act of 2015 are listed below. Congress
>> passed these
> items
>> that were buried in the middle of a huge bill that was
>> rushed through to avoid a government shut down last fall.
>> There was
> no
>> debate about the SS part--most people did not even know
>> it was
> there.
>>
>> "File & Suspend" can still be done for those have reached
>> full retirement age on or before May 1, 2016.
>>
>> "File restrictive application" can be done if a person is
>> 62
> on or
>> before January 1, 2016
>>
>> On 4/02/16, clc to jen wrote:
>>> I don't claim to be an expert on Social Security or even
>>> a buff. I am a divorced woman who took Social Security
>>> at 62 on my own record. Some of the strategies which
>>> have been referred to here are loopholes that have been
>>> recently closed by law for most new applicants. Were you
>>> born after January 1, 1954? If so, you don't get to play
>>> games and milk the Social Security System as many
>>> legally did before. Things like file and suspend aren't
>>> allowed for you. If you were born before, talk to a
>>> qualified financial adviser. Believe me, they will be
>>> happy to tell you about file and suspend.
>>>
>>> As for divorced people with a living ex-spouse, my
>>> understanding is that you can claim SS on either your
>>> own record or your spouse's but not both. You also now
>>> have to take the larger amount you are entitled to. At
>>> 62 you can get either 35% of your ex's SS amount or 75%
>>> or your full retirement amount (at 66) whichever is
>>> higher. MY ex makes more than I ever did but my 75% was
>>> higher than his 35%. I live and worked in a state where
>>> teachers paid fully into both SS and the pension system.
>>> Our pensions are lower than yours in CA, however. I took
>>> SS at 62. I had lived on just my pension for 2 years
>>> before that, but it was tight and I didn't want to have
>>> to dip into my savings and investments too much. I
>>> decided not to wait until 66(full retirement age) so I
>>> am stuck with and happy with my 75% until my death or my
>>> ex's death.
>>>
>>> If my ex should die before me, then I will be entitled
>>> to the equivalent of his SS payment at the time. I can't
>>> get both his and mine. I do get the larger amount. He is
>>> planning to retire and take his SS at 66 (next year) so
>>> if he dies before me (not wishing him gone), I would see
>>> a significant increase in my income. That's why the SS
>>> poster told you, your ex is worth more to you dead than
>>> alive.
>>>
>>>
>>> On 4/02/16, Retired Teacher - S.S. buff wrote:
>>>> On 4/02/16, Jen wrote:
>>>>> I read you post several times and still have
>>>>> questions. Where can I find strategies for divorced
>>>>> spouses? Thank you!
>>>>
>>>> JEN,
>>>>
>>>> Divorced spouses have the same options to maximize or
>>> optimize
>>>> their SS benefits as a married couple--plus some that
>>>> are
>>> not
>>>> available to the married couple.
>>>>
>>>> You have several types of benefits available--on your
>>>> own
>>> work
>>>> record, spousal benefits, survivor (widow) benefits.
>>>> The amounts collected vary based on your work record,
>>>> the work record of the ex-spouse and your age when you
>>>> start them.
>>> All
>>>> these benefits can be taken, but not simultaneously.
>>>> You
>>> can
>>>> start with one type and later switch to another type
>>>> after
>>> it
>>>> has grown because of delayed retirement credits.
>>>>
>>>> There are even benefits available to you if you care
>>>> minor children up to age 18 or 20 if still in high
>>>> school, for children who were disabled before age 22,
>>>> etc.
>>>>
>>>> Some types of benefits might require a person to delay
>>>> the start them which might necessitate working longer
>>>> or
>>> needing
>>>> to spend down other resources during the delay.
>>>>
>>>> I could give you specific advice for some of these
>>> strategies
>>>> but I would need to know the amount of your PIA (full
>>>> retirement age benefit on your own work record) and the
>>>> PIA
>>> of
>>>> your ex-spouse, and the birth month/year of you and
>>>> your ex-spouse.
>>>>
>>>> You can find out more about these strategies by
>>>> visiting
>>> the
>>>> SSA website--but sometimes they are confusing. You
>>>> could google a topic like: social security strategies
>>>> for
>>> divorced
>>>> spouse.
>>>>
>>>> There are several SS claiming programs with calculators
>>>> on
>>> the
>>>> internet--some better than others. They can help people
>>> sift
>>>> through the maze of options that are available. Some
>>>> are free. Some have a $40-$50 fee, but are more
>>>> powerful and
>>> show
>>>> more details and reports.
>>>>
>>>> You don't want to JUST get a benefit...you want to get
>>>> the best benefit and at the best TIME for YOU.
>>>>
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