What You Need to Know About the New Laws for Claiming Retirement Benefits
Reading Time: 2 MinutesLast Updated: August 19, 2021
Have you heard that some of Social Security’s rules about claiming benefits are changing? Well, it’s true. The Bipartisan Budget Act that passed last November closed two complex loopholes that were used primarily by married couples. We want you to know why this happened, how it might affect you, and what you should do next.
But first, don’t forget that one of the best ways to increase your Social Security retirement benefit is to delay claiming it between ages 62 and 70. Each month you delay results in a higher monthly benefit for the rest of your life. The new law doesn’t change this.
The new law closes loopholes that allowed some married couples to receive higher benefits than intended. Only a small fraction of retirees used these loopholes. Closing them helps restore fairness and strengthens Social Security’s long-term financing.
So what’s changing with the new rules?
- First, if you are eligible for benefits both as a retiree and as a spouse (or divorced spouse), you must start both benefits at the same time. This “deemed filing” used to apply only before the full retirement age, which is currently 66. Now it applies at any age up to 70, if you turned 62 after January 1, 2016.
- Second, if you take your retirement benefit and then ask (on or after April 30, 2016) to suspend it to earn delayed retirement credits, your spouse or dependents generally won’t be able to receive benefits on your Social Security record during the suspension. You also won’t be able to receive spouse benefits on anyone else’s record during that time.
For more information about these changes in the law, please visit Recent Social Security Claiming Changes and Retirement Planner.
Deciding when to start your Social Security benefits is a complex and personal decision. You may contact Social Security at 1-800-772-1213 (TTY 1-800-325-0778), or visit your local field office, to speak with a representative about your retirement options. In particular, if you are or will be full retirement age (66) or older before April 30, and you think you want to suspend your benefits, contact us as soon as possible before April 30. But remember, if you want to let your retirement benefit grow, you can simply delay taking it, up to age 70.
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About the Author
Virginia P. Reno, Deputy Commissioner, Retirement and Disability Policy
Virginia P. Reno, Deputy Commissioner for Retirement and Disability Policy, Social Security Administration
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Susan
I have spent hours scouring the internet to no avail searching for an answer to this question. My husband became disabled at age 63 in 2014. He will turn full retirement age at 66 in 2017. We know the file and suspend laws were all changed this year. I too am on disability and draw from my own work history, so do not need to draw from him. What we want to do is before his Social Security Disability income converts to retirement Social Security Income on his 66th birthday, is stop the conversion and delay starting his regular Retirement Social Security for as long as possible, hopefully until he reaches 70. If we can do without his social security for the short term, we feel it will be more beneficial to us down the road being able to draw the accrued growth on his retirement Social Security. I realize we are unusual in that I have my Social Security income in place. Any knowledge or advice with first and foremost, can he stop the conversion from Disability to retirement Social Security and second, how exactly would be the best way to go about stopping his Disability Income before it converts. I would genuinely be grateful for the help.
Peg T.
I am 65 and will claim social security at my full retirement age of 66 next year. My husband has a pension. He has contributed to social security for about 20 years but the windfall provision will still affect the amount he will receive. We were planning on him taking his social security benefit at age 70 when it will be the highest and know the windfall provision will still affect it. Next year when we are both 66, can my husband take spousal benefits off of my social security? Will they be reduced? If he can take benefits as a spouse, can he then claim his own at age 70?
R.F.
You are right Peg. Your husband’s Social Security benefits can be reduced based on the Windfall Elimination Provision (WEP). This chart shows the maximum monthly amount his benefit can be reduced because of WEP if he has fewer than 30 years of substantial earnings. In addition, the Government Pension Offset (GPO) may affect his spouse’s benefits. Your husband can call our toll-free number at 1-800-772-1213, for further assistance. Representatives are available between 7 a.m. and 7 p.m., Monday through Friday but you will generally have a shorter wait time if you call later in the day, or later in the week. We hope this helps.
Jami Y.
I am entitled to early social security benefits at age 62, I understand.
I am divorced and entitled to social security benefits from my ex’s earnings. He is still working and his earnings have been very high, likely maximum. My own history is very low.
If I only apply for my own low benefit, could I then apply for divorced benefits at age 66 and get a bump up in benefits for waiting to claim the divorced benefits in addition to mine?
I understand that I HAVE to apply for my own benefits to apply for divorced spouse benefits, but what happens if I do not apply for divorced spouse benefits at the same time as I apply for my own? Can I then apply for those benefits at age 66? Is there any advantage to doing this
Richard C.
SO If i retired in oct and only earn $15720 a yr i can still collect soc sec. retirement benefit
R.F.
To learn more, please visit our Frequently Asked Questions web page or read our publication: “How Work Affects Your Benefits”.
Richard J.
file for retirement benefit i’ll be 62 in Oct 2016,i plan on working til end of year and working part time. why must i wait til either may or June of 2017 to received beneft
R.F.
Hi Richard, you do not have to wait until June of 2017 to receive your retirement benefits if you apply at age 62 in October 2016. You can still work and receive your Social Security retirement benefits at the same time. However, since you are younger than the full retirement age and (probably) earn more than the yearly earnings limit, your benefits could be reduced. For 2016 that limit is $15,720. If you apply for benefits at age 62, and work part-time thereafter you will be considered “retired” only if your monthly earnings are $1,310 or less. You can use our earnings test calculator to see how your earnings could affect your benefit payments, or see “How We Deduct Earnings From Benefits”. To learn more, please visit our Frequently Asked Questions web page or read our publication: “How Work Affects Your Benefits”. If you have additional questions, please call our toll free number at 1-800-772-1213, Monday through Friday between 7 a.m. and 7 p.m. and talk with one of our representatives.
Jimmy
I turn 62 in November of 2016 and I plan to take an early retirement. Do the new laws effect me?
R.F.
Thank you for your question Jimmy. If you turn 62 on or after January 2, 2016, and will be eligible for benefits both as a retired worker and as a spouse (or divorced spouse), then the new law applies to you. See “What do the Recent Social Security Claiming Changes Mean for Me” for more information on the new law.
Derek R.
I got hurt at work and i am unable to work the rest of my life
Derek R.
I am 62, been on disability for10 years.My old pension company sent me papers to file for pension plan.Who can i get to help me fill out the application? I have until October of 2016. Will i loose my disability?
R.F.
If you have a pension from a private-sector job, and need information, please visit the Pension Benefit Guaranty Corporation (PBGC) web page. Thanks!
Susan
Can you legally be asked to retire when you reach your FRA?
R.F.
Thanks for your question Susan. Actually, for Social Security benefits, you can continue working past your full retirement age or FRA and earn Delayed Retirement Credits when and if you delay getting your retirement benefits up until age 70. The decision on when to apply for benefits is a personal one. We can only provide you with the information to help you make the best choice according to your own situation. To help you plan for the future, you can use our Retirement Planner and you can also create a my Social Security account to verify your earnings, get your Social Security Statement, and much more. We hope this information helps!