Two questions please:
1) - I am concerned that congress may reduce social security benefits. Of course no one knows what will happen but I guess that if they make changes, they could "grandfather" current recipients. I turn 65 next month. I could file and suspend. If I did that, would I still be a current recipient (for grandfathering purposes), or, at least be in a position to rapidly claim benefits again if it looks like legislation may impact my future social security benefits.
2) Which brings me to the second question. I believe I've read different understanding of this: I fortunately will make too much money (sounds funny to say that) and at age 65 would thus have my benefits reduced. If benefits are reduced due to too much income, will I eventually get that money or is it gone forever?

Thank you,
Larry

Hi Larry,

You can't file for and suspend your benefits until you reach full retirement age (FRA), and if you were born in 1955 your FRA would be age 66 & 2 months. Whether or not doing so would grandfather you with regard to a theoretical future amendment to Social Security would depend on what's stated in that new law. In past Social Security amendments when congress has grandfathered people it's generally been based on their year of birth, not whether they've already filed for benefits.

If you file for your benefits prior to FRA and your earnings require withholding of some or all of your benefits, you wouldn't be paid those benefits in the future. What would happen is that effective with the month you reach FRA Social Security would remove the reduction for age that was previously applied to your benefit rate for any months prior to FRA that you ended up not being paid due to the earnings test.

For example, say Bob files for his Social Security retirement benefits at age 65 instead of his FRA of 66 & 2 months. Bob's FRA rate would have been $1800, but his age 65 rate is reduced for age to $1660. That reduction of $140 is based on the presumption that Bob will be paid for all of the 14 months prior to his FRA. But, if Bob ends up only being paid for, let's say, 7 of those months due to his earnings, then Social Security would remove half of the $140 reduction effective with the month Bob reaches FRA. In other words, Bob's benefit rate starting at FRA would be increased from $1660 to $1730. So, one way to look at it is that if Bob lives long enough he may eventually recoup the benefits he lost due to the earnings in the form of the $70 increase in his monthly benefit rate.

By the way, we don't recommend changing your filing strategy due to possible future changes in the Social Security law. You should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to help you determine your best strategy for maximizing your benefits.

Best, Jerry

Best, Jerry