Your clients can “file and suspend.” It is still one of the best tools for boosting Social Security benefits after reaching full retirement age. At full retirement age or older, your clients can suspend their benefits for any amount of time up to age 70. They may do this to earn “delayed retirement credits,” which result in a higher benefit payment when they turn 70 or when they request reinstatement of benefits, whichever comes first. The difference now is when your client submits a request to suspend benefits, they cannot receive spouse’s or widow(er)’s benefits during the voluntary delay period. In addition, if the client suspends benefits, any benefits payable to their spouse and children on their record (except for a divorced spouse) will also be suspended for the same suspension period.
For more information, visit the Voluntary Suspension FAQs at https://www.ssa.gov/planners/retire/suspendfaq.html
Ever wonder how Social Security decides when an individual’s payment arrives? If someone is receiving benefits on their own record, then the Social Security benefit will arrive on either the second, third or fourth Wednesday depending on the day in the month of the individual’s birthday. For example, if a retiree’s date of birth is 08/04/1953 that means their payment date is the second Wednesday of each month because they were born on the 4th. If someone is receiving benefits on that retiree’s record, such as spouse’s or children’s benefits, they would also receive benefits on the second Wednesday of each month because the payment date is based on the number holder’s birth date.
For those clients gearing up to file for Social Security benefits, feel free to give them a payment schedule at https://www.ssa.gov/pubs/calendar.htm
Do you have clients that would like to file for Social Security retirement benefits but they’re not sure if eligible because of a “special payment” coming from their employer after they retire? This could be a bonus, accumulated vacation or sick pay, severance pay, back pay, standby pay, sales commissions and retirement payments. If this has come up with any of your clients, be sure to check out how special payments affect Social Security retirement benefits. It may surprise you.