Common Mistakes to Avoid with Social Security
A few recent reports have shown that many people applying for Social Security or nearing retirement age are making a few common mistakes that are easily avoidable. These mistakes are compounded with the recent change in rules in claiming benefits. The results of these surveys show that the average person needs to shore up on their Social Security knowledge or they may miss out on a lot of money that they are entitled to in retirement. Not being educated on this subject is tantamount to throwing money away, money that you worked for throughout your entire career. For more information on this subject visit this article by Brian O’Connell with TheStreet.
This referenced article makes the same mistake as others linked here lately, namely pointing out taking spousal benefits through a restricted app. From the article:
“For instance, not filing for a spousal benefit because you earned more than your spouse can set you back financially. ‘If you reach your full retirement age during or before 2019 and your spouse has already filed for benefits, you can build wealth by waiting until age 70 to collect your own retirement benefits and filing a claim at your full retirement age restricted to spousal benefits only,’ Blayney says. ‘This allows you to collect two benefits sequentially.’
Blayney is mistaken as I understand the new law’s restrictions. Deeming has been extended to age 70, and the restricted application has been eliminated. If the older spouse is taking benefits, the younger spouse may apply for spousal benefits, but will be deemed as applying for both spousal and full benefits and will receive the higher of the two, but a smaller benefit than if the younger spouse had waited for age 70 claiming.