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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Ivy J.
I’m 59 and retired…can i claim social security now, or wait til age 62…..for some reason i was under the impression you can claim it at any age if retired…true?
R.F.
The earliest you can start receiving reduced retirement benefits from Social Security benefits is at age 62. Generally, you should apply for retirement benefits three months before you want your benefits to begin. Visit our Retirement Planner: How Should I Prepare For Retirement? for more information.
Kevin D.
My father is 64 now (DOB 1-8-52) and my mom is 60 (dob 10-3-55). I was told that my father can file for a restricted application for spousal benefits at age 66 under the new rule(mom will only be 62.5 at the time). At age 70 I was told he could file for his own social security with delayed credits. Then once my mother turns 63, she can file for her own benefits. Is this correct? I always thought in order to get a spousal benefit, the other spouse needed to be full retirement age or already receiving their benefit. Can anyone help?
R.F.
Under the new law, individuals can still voluntarily suspend benefit payments at their full retirement age (currently 66) in order to earn higher benefits for delaying. But during a voluntary suspension, other benefits payable on their record, such as benefits to their spouse, are also suspended. And, if they have suspended their benefits, they cannot continue receiving other benefits (such as spousal benefits) on another person’s record. The earliest a person can apply for Retirement Benefits on their own record is 62. See our Retirement Planner: Recent Social Security Claiming Changes for more important information.
Charlotte B.
I was married to my ex husband for over ten years but never changed my name to his or reported the marriage to SS office. I used my maiden name during the marriage. Would this change anything for me as far as drawing from his SS at the time of retirement?
R.F.
Hi Charlotte. Here are the eligibility requirements to receive benefits as a divorced spouse:
•You are unmarried;
•You are age 62 or older;
•Your ex-spouse is entitled to Social Security retirement or disability benefits and
•The benefit you are entitled to receive based on your own work is less than the benefit you would receive based on your ex-spouse’s work.
Please visit our Retirement Planner: If You Are Divorced, then check out our publication, “What Every Woman Should Know” for more important information.
Debbie
I am a widow who will turn 60 in a yr. can I apply for SS using my deceased husband as his was higher than mine I am unemployed as it is so hard to be hired at this age. Can someone please advise me on my options?
Thank you
R.F.
Thank you for your question Debbie. If you are the widow of a person who worked long enough under Social Security, you can receive reduced benefits as early as age 60. (age 50 or over if you are disabled). Our system is set up to take applications three months in advance. In addition, you can continue to work while you receive Social Security benefits, but if you make more than the yearly limit, your earnings may reduce your benefit amount. You can learn more about getting benefits while working when you read our publication “How Work Affects Your Benefits”. We hope this information works.
Tony
My mother is 63 years old and owns her own day care at home. She decided to take her SS benefits at 62 years old to help with income. She was never told about the $15,720 income limit and is now being taxed $1 for every $2 that she makes. She makes $675 per month on SS and was making approximately $21,000 per year. She was barely surviving on the $21,000 and now she’s being held back from making more. Can someone please tell me that she can make more than $15,720 and not be taxed at 50% per dollar over that amount.
Thank you,
R.F.
In 2016, the annual earnings limit is $15,720 if you are under full retirement age. If you are younger than full retirement age and make more than the yearly earnings limit, your earnings may reduce your benefit amount. When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net profit if you are self-employed. In addition, as long as you continue to work and receive benefits, we will check your record every year to see whether the additional earnings will increase your monthly benefits. After you reach full retirement age, we will recalculate your benefit amount to give you credit for any months in which you did not receive a benefit because of your earnings. Please visit our “Retirement Planner: Getting Benefits While Working” for more important information.
Cash
I cannot seem to find the answer to this question “anywhere online”.
How can I find out who, if anyone else is drawing on my social security benefits?
For example, I saw a statement that said if an ex spouse was drawing on a beneficiary, the said beneficiary would not know or be told. Would the beneficiary be told if they asked? If not, why not? I think the beneficiary of their own social security benefits has a right to know if anyone at all is drawing under their name or social security number.
Personally couldn’t care less if an ex spouse is drawing, however, I do think I have a right to know if someone is using my benefits. I know claimants have to have proof but their is plenty of fraud in the system.
R.F.
Thank you for your question. According to our policy (POMS – GN 03340.055), a number holder (NH) or wage earner is entitled to know:
– Names, dates of entitlement, and benefit amounts of all people receiving benefits based on his or her earnings record, and
– Names and claims status of all individuals filing for benefits on the earnings record.
Right of access does not entitle a NH to information about the payment status or check amounts of other individuals.
The information described above can be provided only to the NH. The NH cannot authorize release of claims or benefit information about individuals on his or her record to a third party.
Cash
Thank you Ray…
Debbie
My sister will be 60 next month and is drawing disability. She is divorced and needs more income. Can she begin to draw off her ex (they were married 10 years) at the age of 60 and still continue to draw her disability?
R.F.
Thank you for your question Debbie. Surviving Divorced Spouses, widows or widowers can get benefits at age 60. Your sister may be eligible to receive benefits at age 62 on her ex-husband’s record if:
The ex-husband is entitled to Social Security retirement or disability benefits;
Your sister is unmarried;
Their marriage lasted for at least 10 years and
The benefit that she entitled to receive on her own record is less than the benefit she would receive on the ex-spouse’s record.
Note: If the ex-husband does not apply for his retirement benefits, but can qualify for them and is age 62 or older, your sister can receive benefits on his record if they have been divorced for at least two years.
Please visit our Retirement Planner: If You Are Divorced, then check out our publication, “What Every Woman Should Know” for more important information.
Debbie
he (the ex is drawing his SS now. She is not married, but is drawing disability. I didn’t know if she could draw her disability and draw SS off her ex at the same time, or can she only draw one or the other. AND at the age of 60.
Linda D.
A woman at the social security office told me that I could come back when I’m 66 and would get more money I took my soc. sec/ . when I was 62 thinking that when my husband retired at 66 I could collect half of his, but they changed the rule to only 1/3. I never would have collected at 62 if I had known that. Do you know this is possible and how
R.F.
Hi Linda. Yes, reduction factors are permanently applied to all benefits an individual may qualify for once they opt to start benefits at age 62 or at any time prior to their full retirement age.
Eileen
I am 63. My birthday is in June. When is the best month to apply for social security benefits?
R.F.
Hi Eileen. Our system is set up to take applications three months in advance. At age 63, you can apply for your benefits online at any time now. Remember that benefits are paid the month after they are due. So, for instance, if you want your benefits to begin with the month of September, you will receive your first benefit payment in October. Please visit our Social Security Retirement Planner for more information.
Stephanie
I am 49 years old. My ex husband turns 62 this July. We were married for 25 years. Can I collect NOW in his social security?
R.F.
Hi Stephanie. Generally, a divorced spouse may be able to receive benefits on the ex-spouse’s record starting at age 62 or older. Here are the requirements to receive benefits if you are divorced:
• You are unmarried;
• You were married to your ex-spouse for at least 10 years;
• Your ex-spouse is entitled to Social Security retirement or disability benefits and,
• The benefit you are entitled to receive based on your own work is less than the benefit you would receive based on your ex-spouse’s work.
Please read our publication, “What Every Woman Should Know” for more important information. Thanks!