Federal Budget Changes For Social Security Could Affect Benefits

By Lynne Adkins

PHILADELPHIA (CBS) -- The new federal budget closes several social security loopholes that could mean less money for you.

The new budget eliminates the file and suspend strategy, which let couples collect on one spouses social security benefits, while both benefit accounts continued to grow.

"A married couple had the ability to have both of their social security benefits," says Alan Schapire of Convergent Financial Strategies, "Earn the delayed retirement credits out to age 70, while still having the ability to collect a spousal benefit for one of them between 66 and 70."

Now people nearing retirement will need to rethink their plans.

"Most people I've spoken to are not necessarily crazy about these changes," says Schapire, "They understand that it helps the long-term health of the social security system, but they were using the strategies of this nature to put additional dollars in their own pockets."

He says this one loophole could have been worth nearly $50,000 for each couple.