Covisum Blog

The Social Security Administration (SSA) announced on Tuesday, October 18, that for 2017 there will be a 0.3 percent increase to the monthly Social Security benefits for more than 60 million recipients.

A subscriber called our support team and asked this claiming question for his client. I have a client, Jim, who is 62 years old. His wife, Kim, is five years older and already collecting, having elected at age 62. Can he file now and have his wife apply for the spousal benefit? Her benefit is $425 a month, and his benefit at age 62 would be $1,706 and at 66 would be $2,265.

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When I spoke about Social Security planning at the NTSAA 403(b) Advisor Summit in Las Vegas, much of the discussion centered on the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) in Social Security. If you’re an advisor who works with teachers, police officers, firefighters, government employees or the spouses of those workers, you need to be aware of these provisions and how they affect your clients.

If you are under full retirement age (FRA), there is a limit to what you can earn before some or all of your benefits are withheld. This is true whether you are receiving Social Security Retirement or a Survivor benefit. Once you reach FRA, you can make as much as you want. It's important to note, this is not a tax. If the earnings penalty applies to you, Social Security will adjust your benefit formula at FRA to treat the months that you did not receive a check as if you had not elected benefits for that month.

This past November, the Bipartisan Budget Act of 2015 was signed into law and instituted sweeping changes to the Social Security system. In some cases, the application of the law will continue for almost eight more years, and in others, claimants may lose benefits if they do not take action by April 29, 2016. Through all of this, individuals continue to knock on the door of the Social Security Administration (SSA) in record numbers to file claims.