If you’re planning to retire in 2016, now is a good time to brush up on your knowledge of social security rules and guidelines. With all the changes to social security that have occurred in the recent past, the attorneys at The Gil Law Firm in Dothan, AL want you to be prepared for any and every issue you encounter when filing for social security.
Here are three social security changes you can expect to hear about in 2016:
- Annual Increases: This year you can expect to see a $40 increase in the amount of earnings needed to over a quarter of social security coverage. You can also expect the formula used to calculate benefits to change as well. The bend points for benefits will rise, with the lower bend increasing by $30 and the upper bend increasing by $177.
- File And Suspend: The file and suspend strategy will no longer apply in 2016. This change, which was part of a budget deal that was passed in November, won’t take effect until May. However, once it’s effective, the change will mean that you’ll no longer be able to file and then suspend social security in order for a spouse or a child to claim benefits.
- Early Retirement Restricted Applications: The new budget agreement eliminates the restricted application option for those who haven’t reached full retirement age. In previous years, an individual could file for spousal benefits first and then receive his or her own retirement benefits later. But new laws have increased the restricted application age from 66 to 70, effectively eliminating the option to file a restricted application.
To learn more about SSI or social security disability, contact The Gil Law Firm in Dothan, AL at (334) 673-0100 or visit them online.