I’ve spoken about the changes to Social Security in the past, here’s a post on them. I’ve just spent the past hour on the phone with the Social Security Administration and out of frustration want to issue this PSA.
Social Security Restricted Application STILL EXISTS for those born before 1954. The restricted application strategy is as follows:
- Person files for full benefits.
- Spouse of person applies for Spousal Benefits (50% of full)
- At age 70 Spouse of Person applies for own benefits
In terms of which of the spouses should file in step 1, it tends to be the younger spouse, with the smaller PIA (monthly estimated payment) of the two. If payments are very similar, or ages are different, then it may or may not still be a good idea.. but that is a different conversation.
To the untrained agents I’ve been speaking with for the past hour:
- This is NOT the file and suspend strategy, file and suspend would mean that the Spouse (step 2) FILED and SUSPENDED. The spouse in the restricted application strategy does not file for their own benefits until age 70. File and Suspend ended as an option on April 29th 2016.
- The Restricted Application IS NOT referring to the date that you can apply for File and Suspend. That’s a date. It’s April 29th 2016.
- You don’t ‘know more than me because you work for the Social Security Administration’ in fact, you should be fired and sent to prison for misinforming hard working American’s about their options for retirement you incompetent battleaxe.
Did you flaunt them your British heritage to rub it in their face more?
No, since we lost the war I keep that for non government people only
technically you lost two wars – Revolutionary and the War of 1812. Just sayin.
You probably old enough to remember them both
Or he just hops in his TARDIS.
Yikes, this should not be such an uphill battle.
But this option may indeed be appropriate for many, many boomers, because of when they came of age, the earning power of women in the last quarter of the 20th century, and who was most likely to stay home with the kids. That package meant that one spouse – usually the wife – often earned less than the other.
Thanks for doing the heavy lifting for a whole generation of folks who are about to or have recently filed for SSI. And if you’re reading this but you’re not a boomer, tell you parents!!
Happy to help on this. Was really disappointed that 2 out of 3 people denied you could do this, and were quite condescending.
I know for a fact that if those ill informed agents spoke to the average retiree, their ignorance will cost these people money, as people are all too willing to trust a person in a position of ‘authority’.
Oldest Son works for the SSA. He strongly recommends making an appointment to come in and talk to a rep, because that way, you can have your questions written down, and write the answer you get with the person watching, so they don’t keep talking over your note-taking.
He agrees with you, Matt, BTW: many of his coworkers just want to get people in and out. But there ARE well trained and caring employees of the SSA.
Medicare, maybe not. I had one simple question last year: do I need to file for Part B, if I have group coverage through my spouse. I suspected the answer was NO. It is. But it took her 15 minutes of me repeating the question, and her looking up answers to a different question, to get the answer.
I called Spouse’s HR rep. She told me, immediately: Nope. We’re primary and you don’t need Part B till you no longer have group coverage.