Major changes to Social Security contained in the recent budget legislation has financial advisers struggling to develop new retirement plans. The new Social Secure measures will do away with the file-and-suspend claiming strategy. This new legislation that was passed by the Senate on Friday morning also places restrictions on filing for a restricted claim of spousal benefits. There are many people that have relied on these claiming strategies when making their retirement plans that are now going to have to scramble to adapt. Many senior citizens might either have to keep working or learn to live with less. Clients that have not saved enough will no longer be able to depend on the extra boost that they would have gotten from these Social Security claiming strategies.
See Mark Schoeff Jr., Advisers rethink retirement plans amid Social Security changes, Investment News, October 30, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
