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.