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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gary h.
since I’m retired and working partime and have paid in over $800.00 into ss and have not got a raise last and here won’t be none this year can I claim the money on my taxes as a loss? ps can I stop paying into ss in 2017 since our great goverment not giving out raises on for thier self like they need it
Steven
My wife turned 62 in August 2015 and applied for and is receiving SS benefits on her work record. I turned 66 in August, this year (2016). I desire to wait until I turn 70 years old to apply for benefits on my work record. I am a high earner, my wife had moderate income work record. Can I file a spousal application on my wife’s work record to receive spousal SS benefits until I turn 70. AND IF so, will that shield me from projected increases in Medicare Part B premiums until I reach 70 and file on my work record? AND when I reach 70 and file for my own SS benefits, can my wife, then change her status to spousal benefits based on my work record?
Thank you.
J.Y.
Hi Steven, Thank you for your question. Since you turned 62 before January 2, 2016, the new deemed filing rules do not apply to you. This means that your option to either file on your spouse’s record or on your record is preserved. In your case, you may certainly choose to restrict your application to apply only for the spouse’s benefit and delay filing for your own retirement in order to earn delayed retirement credits. Also, when you do end up filing for retirement benefits, your wife can then file for spouse’s benefits on your record if she’s eligible.
To answer your question about Medicare, receiving benefits as a spouse will not shield you from potential increases in Medicare Part B premiums. The increase in Medicare Part B premiums is calculated based on your income. Social Security uses the most recent federal tax return to make that determination. For more information, go to https://www.ssa.gov/pubs/EN-05-10536.pdf.
P W.
This document en-05-10536 is now no longer available. Opened a problem and still not fixed
V.V.
Hi there. We apologize for the broken link. Please visit the Medicare web page on Part B costs in 2020. In addition, check out our Frequently Asked Questions web page for additional Medicare premium information. We hope this helps.
Melinda
My husband and I are confused about how the Bipartisan Budget Act of 2015 affect us. We understand they are phasing out the file and suspend but don’t know if we can still do that. I hope you can help us figure out what is best in our situation:
1. My husband is currently 67 and is still working and paying into Social Security. He has not yet claimed SS.
2. I will be 65 in September. I am retired and payed into SS. I have not yet claimed SS.
3. Can my husband file for SS now and then suspend his benefits until age 70 and can I at age 65(next month) file for spousal benefits now and not file on my own until I reach age 70 thereby letting my SS grow each year. Or, do I have to wait until age 66?
R.F.
Thank you for your question Melinda. Under the new Bipartisan Budget Act of 2015 (BBA), your husband will still be able to file and suspend his benefits while earning delayed retirement credits. However, anyone receiving benefits on his record will also be suspended. Meaning, that you will not be able to collect spousal benefit from his record while deferring your benefit until age 70. Section 831 of the Bipartisan Budget Act of 2015 (BBA) eliminates aggressive claiming loopholes specifically. For more information on this, please see: Deemed filing and voluntary suspension of benefits. Employees in our field offices can answer specific questions related to these changes that can affect your situation. You may also call our toll-free number at: 1-800-772-1213 and speak to one of our representatives. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. We hope this information helps.
Melinda
Ray, thank you for your reply to my question posted on August 22, 2016. I still have question or two.
What is the purpose of filing and suspending until 70 years of age in order to earn delayed retirement benefits? We thought this would happen anyway by just waiting to claim SS until he was 70. What are we missing here?
On the topic of “phasing out” the file and suspend loophole, what exactly does “phasing out” since we understand that we do not have that option anymore?
We appreciate your knowledge and time. Thank you.
R.F.
Hello Melinda. You didn’t miss anything. You will automatically earn Delayed Retirement Credits if you wait to receive benefits until the age of 70. Delayed retirement credits are added for months of non-payment between full retirement age and age 70 regardless of whether or not you file and suspend at your full retirement age. There is absolutely no need to “File & Suspend” when you reach full retirement age (currently age 66).
As to your second question, we use the expression “phasing out” because changes from the Bipartisan Budget Act of 2015 did not apply to everyone. Individuals who attained age 62 before January 2, 2016 or prior were grandfathered under the old law. We hope this helps!
Melinda
Okay, so now we need to find out what our best scenario is given we are of the age to be “grandfathered in” and will want to use the “Restricted Application”. Is there an updated calculator (after the Bipartisan Budget Act in 2015 that can help us plug in a couple of different scenarios? Also, we’ll need to know how far ahead of age 70 to apply? Thank you in advance, once again.
..
Hello Melinda, we have an online Retirement Planner: Plan For Your Retirement that will provide detailed information to assist you in your decision-making process including online Benefit Calculators. There you will find a calculator to help compute the effect of early or late retirement on your benefit amount as well as a spouses calculator that will compute the effect of early retirement on spouse’s benefits.
The earliest date you can apply for benefits is 4 months before you want your benefits to start. We cannot process your application if you file for benefits more than four months in advance. Once you’re ready to apply, you can do so online at http://www.socialsecurity.gov/retire
Carole
I’m 61 turning 62 Feb 1, 2017. I’m planning on retiring in the next 3 months and filling for SS as a surviving spouse. I then plan on switching to my retirement at 66 or possible 70. With the changes in the SS laws is it still possible to do this. My husband was on SS disability at the time of his death.
R.F.
Thank you for your question Carole. Yes, you can file for widow’s benefits now and switch to the other (higher) benefit at a later date. At this time, we do not offer an online application for survivors’ benefits. To make an appointment or to speak to one of our representatives, call our toll free number 1-800-772-1213, Monday through Friday, between 7 a.m. and 7 p.m. We hope this information helps!
Franniemay
I was born in 1952 (I’m 64). My husband is on Social Security disability. I’m planning to work until 70. In 2 years at 66 can I file and suspend on my Social Security and file for spousal support until I’m 70?
R.F.
Thank you for your question Franniemay. Since you turned 62 years old before January 2, 2016, deemed filing rules will not apply to you if you decide to file at your full retirement age or later. This means that you may file for either your spouse’s benefit or your retirement benefit without being required or “deemed” to file for other benefits you could be entitled to. You could restrict your application and apply only for spousal benefits and delay filing for your own retirement in order to earn delayed retirement credits. See our Retirement Planner: Deemed Filing FAQs web page for more information.
Nicole G.
My mom is applying for retirement she is 66 and has Parkinson’s disease. SS is saying she has to prove she doesn’t receive a pension which she doesn’t from a job she worked at for a year, 15+ years ago. The IRS has no record of a pension and the place she worked had no documents so the wrote a statement verifying she doesn’t receive a pension. But SS claims they cant accept that? What can she do to get the full benefits she needs?
patricia
i was married to my husband for 7 years..got divorced..stayed with him and raised our 3 children together..remarried him 6 wks. before he died at hospital..and am being denied his benefits..we were always together, so why can’t i get his benefits?
R.F.
We are sorry for your loss Patricia. According to our Program Operations Manual (POMS), an applicant for surviving spouse benefits, must meet the 9 months duration-of-marriage requirement. However, you have the right to file an application for benefits and receive an official denial of your claim from Social Security, which will provide you appeals rights, if in case you wish to seek legal advice to verify our decision. Thanks.
Robin
HI, My estranged husband was on SSI and just passed away at 57 im 56 . can I get survivor benefits at 60 and delay taking my entitlement til 66 ( fully retirement age) get get my full benefit or will it be reduced ?
R.F.
Hi Robin. Benefits issued through our Supplemental Security Income or SSI program are based on the needs of the individual and are only paid to the qualifying person. There are no spouse’s, children’s or survivors benefits payable. Benefits paid through our Social Security Disability Insurance (SSDI) program, in certain circumstances, are payable to certain family members. Information on Survivors Benefits can be located on our website at: http://www.ssa.gov/survivors/. Please call our toll free number at 1-800-772-1213 for further assistance. Representatives are available, Monday to Friday, between 7 a.m. and 7 p.m. Thanks.
J. P.
My wife is on disability, I am turning 62 in Oct. Can I get medicre insurance part A & B, and hold off getting my monthly SS money until age 65, to maximize the payout? In a sense life is forcing me into retirement due to my wifes illness.
R.F.
Medicare is our country’s health insurance program for people age 65 or older. Also, if you turn age 62 on or after January 2, 2016, you are required or “deemed” to file for both your own retirement and for any benefits you are due as a spouse, no matter what age you are.
Sharon
I will be 62 June of 2018 and I also will be divorced from him ( married 27 yrs) for 2 yrs in Oct 2018. He will be 60 in 2018 so he will still be working, so can I draw from his when I am 62 or do I have to wait till he turns 62 and also if I early retire at 62 drawing my SS, then when I am full age of retirement ( 66 and 4 mos) can I change to draw a different amount at 66 and 4 mos?
R.F.
Hi Sharon. You may be eligible to receive reduced benefits on your ex-husband’s record at age 62 if he is entitled to Social Security retirement or disability benefits. If your ex-husband does not apply for his retirement benefits, but can qualify for them and he is age 62 or older, you can receive benefits on his record if you have been divorced for at least two years. Here are the other eligibility requirements to receive benefits as a divorced spouse:
• You are unmarried;
• You were married to your ex-spouse for at least 10 years;
• 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.Also, if your birthday is January 2, 1954 or later, the option to take only one benefit at full retirement age no longer exists. If you file for one benefit, you will be effectively filing for all retirement or spousal benefits.