Since 2008 I have been writing an online advice column called MoneyOver55. At my first annual review my editor asked me to write more content about Social Security. I began reading everything I could find on the topic and writing as much as I could about it. It soon became my most popular topic.
As I added content, readers began asking me questions. Many questions I receive are from informed readers who are trying to employ a suggestion in one of my articles, but when they go to the Social Security office they are told they cannot do what I say they can do. They write to me asking for a link to the source of my information. I send them back a link to Social Security’s own website. I love it when they share their stories with me. This was a thank you note I received from one reader,
“Dana,
Just wanted to let you know the outcome. The Soc. Sec. administration is letting me take my own (very modest) retirement benefit now at age 62, with the understanding that I'll switch to the much larger widow's benefit when I turn 66. They've started sending me the checks already. They didn't give me any trouble at all, to my surprise and relief. I went in there prepared to do battle, which proved unnecessary, but the fact that I arrived armed with information made me feel very comfortable and prepared. Thanks for your help!”
The claiming plan employed by this widow is still viable today, yet many widows and widowers remain unaware of the rules and get less lifetime income than they otherwise might have. You, dear reader, can help change this by passing the knowledge you’re about to learn on to others.
If you know the rules you can accomplish whatever the law allows. Knowing the rules is key. Below is another thank you note I received from a reader who was also able to accomplish what she wanted – but it took persistence on her part.
“Dana,
I just wanted to thank you again for your reference. I signed up for Social Security today based on my husband's benefits and will leave mine to accumulate. So you were right. And a note, the guy at Social Security said he has been working there for 25 years and never heard of this. At first he said I was wrong, as did his supervisor, but after reading his own website (from your reference), and talking to the regional management, he agreed that I had a choice and it got done. Thanks for your help.”
The claiming plan employed by this second reader will only be available for another few years.
On Nov. 2, 2015 new laws[1] were put in place that affect Social Security claiming options. This book covers both the old and new laws.
Due to the new laws the option described in the second quoted email exchange will not be available for anyone who turns age 62 on or after January 2, 2016.
Claiming options will become slightly simpler for couples where both halves reach age 62 in 2016 or later, but in the interim, it is more important than ever to evaluate your claiming choices.
Those of you who reach(ed) the age of 62 by year end 2015 will want to examine your Social Security claiming options carefully. And please, pass the word along to anyone else who may be able to benefit.
The rules are far more complex than a glance at your Social Security statement would lead you to believe.
Making an uninformed choice can mean less income for the rest of your life, and for many of you, the decision as to when to begin your Social Security benefits will be one of the biggest financial decisions you ever make.