The author discusses a strategy for maximizing Social Security benefits known as “file and suspend.” In addition to detailing who can use this strategy, he outlines some examples of how it might work.
The Windfall Elimination Provision (WEP) means if you are getting a Social Security benefit as well as a pension where you did not pay into Social Security, your Social Security benefit is reduced. The author provides examples of the financial impact this can have on your earnings.
Would you like to get a 32% higher Social Security benefit? How about being able to collect ½ of your spouse’s Social Security benefit while you are still working; with no earnings test? The author explains a technique called “restricting your benefits” that can work for many FERS or CSRS employees to boost Social Security benefits.
You may be able to acquire more FEGLI coverage by providing medical evidence of insurability or by experiencing a “qualifying life event” (QLE).
The Postal Service wants to put all retirees under Medicare in order to save billions of dollars. When this is considered by Congress, look out for a similar change proposed for the remainder of the federal workforce.