The budget bill signed by President Obama in November included significant changes to the Social Security program. The changes have left many pre-retirees scrambling to make sense of the new rules. Here’s a breakdown of some of the changes coming:
The Good News
*No COLA. Existing Medicare beneficiaries won’t see an increase in their Medicare Part B premiums. And because of the new budget bill, new enrollees will see a smaller increase (16%) than originally proposed (over 50%).
*Say Hello. More online services and longer office hours may make it easier to reach someone at the Social Security Administration.
The Bad News
*No Raise. There wasn’t enough inflation in 2015 to trigger a cost-of-living adjustment. That means your Social Security check won’t get any bigger in 2016.
*Goodbye Claiming Strategies. Two popular claiming strategies (file and suspect and restricted application) will end next year. Couples have until April 2016 to enter into a claiming strategy before the loopholes are closed.