We trust this newsletter finds you well. This year has brought a significant change to Social Security benefits. The government signed the Social Security Fairness Act; a new law that eliminates two previous rules that reduces Social Security benefits for government employees who also receive government pensions – Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). How does this affect you? – Nearly 3 million people could see a monthly benefit increase of $360 on average. – Public sector workers like teachers, firefighters, police officers, and others, can now expect to receive their full Social Security benefits, regardless of their other pensions. – Affected individuals will receive retroactive payments starting from January 2024. However, it’s not clear whether it will be issued as a lump sum or distributed over time. Even if you’re not a government employee, this is still important information. It reflects broader trends in retirement policy that could affect everyone. Things can change quickly. Consider VERA, the gov’t buyout option package that has the potential to affect several million federal employees. It appears close to 80,000 employees have taken this offer. This type of change can affect many things including pensions, retirement plans, healthcare, etc. Having a financial professional by your side, specifically a Phase 2 fiduciary retirement planner that specializes in these matters is critical.  Key takeaways: We can review your retirement income sources. How much are you expecting from Social Security? Pensions? Other sources? Do you have an income plan to transition into retirement? Let’s help you understand your pension plans (if applicable). How do they interact with Social Security? Which pension option to choose? Single? Joint? Lump sum? If you’re a pre-retiree, let’s evaluate your Social Security benefits strategy. Does this align with your broader retirement objectives? What is the best age for you to take your benefits?  As always, we’re here to guide you through these changes and support you in making informed decisions. Let’s schedule a complimentary meeting to help you gain greater confidence and clarity for this year. If you are not an Abich client, click here to schedule a time to meet with our advisory team.  If you are an Abich client, click here to schedule a time to speak with an advisory team member.

To retiring with dignity and confidence, Abe Abich & the Abich Financial Team