While You Where Sleeping

Michael Anicito |

While You Were Sleeping…Congress Messed with Your Social Security

On the morning of Monday, November 2nd, 2015 at 3am, a budget bill was signed into law, called the Bipartisan Budget Act of 2015. This Bill enacted without public hearings or much notice increased spending by $80 billion and raised the federal debt ceiling. The United States continues to feast on debt that only future generations will have to deal with, but within the Bill some Social Security and Medicare recipients will feel immediate pain.

What Has Changed in Social Security?

It has become an ever popular social security strategy to file a restricted application. This provision allows any person that is full retirement age (FRA) to take half of their spouses benefit while accumulating retirement credit (could be as high as 8% per year until age 70). The new law now eliminates this strategy. However, any individual age 62 or older by the end of 2015 will be grandfathered into the past rule.

The use of File and Suspend is also being drastically eliminated. As of May 1st, 2016, no one would be able to file and suspend an application for the purpose of triggering a spousal benefit or filing for retroactive benefits. The small window of May 1st, 2016 would allow anyone who is age 66 or older to be grandfathered into voluntarily file and suspend benefits.

Medicare too?

Medicare Part B (covers the cost of doctor visits, outpatient services, and durable medical equipment) premiums (in most cases deducted from social security) are scheduled to increase 52% over the next 4 years for about 30% of the recipients.


Michael Anicito, CFP®

Inspire Investment Solutions, LLC - President




Michael is an independent CERTIFIED FINANCIAL PLANNER™ who practices in New York and New Jersey. He works with individuals and business owners alike to help save for retirement and manage their assets. He is currently the President of Inspire Investment Solutions, LLC (www.inspireis.com). For more information or a complimentary consultation you can reach him at 646.606.2111 or at mike@inspireis.com.