New Budget Deal Could Cost Some Retirees Up To $50,000

There is a change in how individuals can file and collect Social Security benefits in the new budget deal being kicked around by the White House and Congress.   The change has to do with what is called the “File & Suspend” procedure.  Most people have not even heard of the procedure, so what is “file and suspend”?

A person files for Social Security retirement benefits at full retirement age, but then suspends payment of them. By filing for benefits, that person’s spouse and dependents are eligible for retirement benefits at the time of the filing. And by suspending the benefits, the person can still earn delayed retirement credits that increase the future retirement benefit by 8 percent per year until age 70. source:

The budget legislation calls the procedure an “unintended loophole” because it allows individuals to obtain benefits meant for 70-year-olds  earlier.

If the budget deal passes, then the change would only affect retirees who file for benefits in the future, and wouldn’t take effect for 6 months after the budget passes.

You can visit your local Social Security office to learn more information.  Search online for “social security office” to find the nearest office.

Below are some links to some of the most searched for social security resources: