Q: You've written a lot about how to maximize your Social Security income. From what you say, it's possible for me to collect a Social Security benefit based on my spouse's or my ex-spouse's work record, and at the same time remain in the workforce and earn a salary. Isn't it also possible that the government will close this loophole in the future? --RV, via email
A: This isn't a loophole. It's part of a law -- the Senior Citizens Freedom to Work Act of 2000 -- that was intended to encourage people to keep working beyond their retirement age. These rules were created to let you collect a partial retirement benefit while you stayed on the job.
At that time, the big concern was that when the baby boom generation retired, the U.S. wouldn't have enough skilled workers to fill the jobs that opened up. Remember all that talk of a 'brain drain' that would make it hard for American business to compete in a global economy?
The government's response was a law that encourages baby boomers to say on the job by using strategies I've written about for AARP magazine and AARP Bulletin , as well as on this blog. (Look at the many posts listed under Social Security).
Okay -- clearly, today's economy is very different from the one envisioned in 2000. Baby boomers don't have to be encouraged to stay in the work force. They can't afford to leave it!
Nevertheless, from the government's viewpoint this law has a very beneficial effect: It is helping many financially hard-hit people weather a bad economy and a terrible job market. No one on Capitol Hill is going to propose rescinding it now.
As for the future, of course it's always possible for Congress to change a law. Indeed, Social Security rules are bound to change going forward as they have in the past. But it's safe to predict that these rules won't be changed retroactively. In other words, any change will apply to future Social Security applicants, not to people who are already receiving benefits.
Meantime, these aren't loopholes. They're strategies firmly grounded in the law.
Comments