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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Kathy
I was born in 1950 and turned 66 in July, 2016. I do not plan to file for SS on my own record before I turn 70 as I am still working. I was married for over 30 years. My ex husband turns 66 this week and plans to retire in Feb, 2017. Can I file on his record without interfering with the benefit I would receive on my own record at 70? Can I file on his record before he retires? I understand that, when I file on my own record at age 70, my benefit will be adjusted against the amount I receive on his record.
R.F.
Thank you for contacting us Kathy. If you are divorced, but your marriage lasted 10 years or longer, you can receive benefits on your ex-spouse’s record, as long as you meet the other eligibility requirements. If your ex-husband has not applied for retirement benefits, but can qualify for them, you can apply and receive benefits on his record, if you have been divorced for at least two years. In your case, since you have already reached your full retirement age (66), you may also restrict your application to apply only for divorced spouse’s benefits and delay filing for your own retirement in order to earn delayed retirement credits. You can apply for Divorced Spouse’s benefits online or you can call our toll free number at 1-800-772-1213. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m.
Tonya B.
My father had an accident on his job and he was injured. He was put on disability payments. He turned 70 years old in 2016. How come he was not eligible to receive more money when he turned this age?
R.F.
Hi Tonya. If your father received disability benefits under the Social Security Disability Insurance (SSDI) program, we automatically converted his disability benefits to retirement benefits, when he attained his full retirement age (currently 66). The benefit amount remains the same at the time of the conversion.
Happytoretire
I will turn 65 in January. My gross income is approx. $55,000. I plan to retire at the end of this year and draw my pension from my place of employment. When I turn 66 I will apply for Social Security. Will my 1 year of reduced income affect my Social Security earnings?
R.F.
Your Retirement Benefits are based on the amount of your average lifetime earnings and your age at the time you apply. Generally, we use the highest years of earnings to calculate your monthly benefit amount. You can use our online calculator where you can test various scenarios and retirement ages to estimate your benefits. You can also create a my Social Security account to review estimates of your retirement, disability, and survivors benefits, your earnings record, and the estimated Social Security and Medicare taxes you’ve paid. We hope this information helps.
April
My husband turned 65 in 2016, but started drawing SS early at 62. I am turning 66 in October and still working. I applied online for my retirement benefits to begin at full retirement. The Chicago office of SS called and gave me three options. One was to opt to start spousal benefits in 10/16 and to delay receipt of my own retirement benefits at full retirement age. She said I was entitled to wife’s benefits beginning at Oct 2016 of one half my husband’s benefits at his full retirement age.
My local SS office cancelled my first application and reapplied for me. The new claim states “a previous application has been filed with the Social Security Administration by me. The remark section reads “I am filling for spousal benefits and delaying filing on my own record to earn delayed retirement credits. I wish to exclude retirement benefits from the scope of this application.”
I received a letter approving the withdrawal claim for all social security retirement benefits. A few days later I received a letter confirming the spousal benefit. It said “This benefit is the only benefit you can receive from us at this time. In the future, if you think you might qualify for another benefit from us, you will need to apply again.”
Am I going to have a problem in the future filing for my own benefits? Did the withdrawal of my first online application cause anything to change? Do I still qualify for a one time do-over in the next 12 months? In other words how did the new law affect my claim?
Wyne
Hello,
I want to confirm my understanding regarding early retire and delay benefits claim. Please point out if my thinking is correct:
1. If I retire at 62, my benefit will be calculated based on tax I have paid until 62.
2. If I start claim my benefits, the amount should be about 75% of that I retire at full age.
3. If I don’t claim benefit and wait until age 66 (Full age), I will get 100% benefit. My question here: Does that mean I will get the same amount of money as I retire at 66? If not, How much?
4. After age 66, if I still don’t claim benefit, my benefit will be increased 8% each year until 70. Question here: 8% increase is based on prior year amount (Calculated if not actually claimed).
Please let me know if above is correct and answer my questions.
Thank you!
R.F.
Thank you for contacting us Wyne. The amount of the Social Security benefit you receive is established at the time you apply for retirement benefits. It is based on the amount of your average lifetime earnings and your age at the time you apply. Generally, we use the highest years of earnings to calculate your monthly benefit amount. If you start receiving retirement benefits at age 62, you will only get 75% of the full retirement benefit amount. To help you plan for the future, you can use our Retirement Planner and our online calculator where you can test various scenarios and retirement ages to estimate your benefits. You can also create a my Social Security account to review your earnings record, and the estimated Social Security and Medicare taxes you’ve paid. To find information related to Delayed Retirement Credits (DRC) click here. We hope this information helps.
Wyne
Thanks, Ray
I still want to know if I retire at 62, but start applying benefit at 66. Is the amount increased compared to the amount collect at 62?
Wyne
R.F.
Hi Wyne. You can start your Social Security retirement benefits as early as age 62 or as late as age 70. Your monthly benefit amount will be different depending on the age you start receiving it. If a person starts receiving retirement benefits at age 62 or any time prior to their full retirement age, their benefit amount is reduced. To discover your retirement options, please visit our Retirement Planner. If you have specific questions, please 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. Thanks!
Mohamed I.
Hello there!
How can I change my age to the correct age. I came from a country in which they don’t record the new born in the 1950’s. I was born around 1954/55, and in 1970 my parents decide to send me to school, and because I have no age record, the superintendent at primary school, told my father your son is very old and accepted age was 7 years old. And because we don’t have any record, my father had suggested to put as born in 1963, and that why they had decided to put it as 01/01/1963.
I would like to know how can I resolve this issue.
You clarification is greatly appreciated.
Thank you,
Sandra S.
I will be turning 66 next month and have not claimed ny Social Security benefits yet because I thought with my spouse still working I would be penalized with taxes due to his income, but someone recently told me a CPA had told him that was incorrect if I waited until full retirement age to claim my benefits. Can you tell me if this is true? I have no other income than my spouse’s support, and we file jointly for our taxes.
R.F.
Hi Sandra, please visit our Frequently Asked Questions web page for information about paying taxes on Social Security benefits. For general tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040. We hope this helps.
Jim
I don’t intend to start collecting Social Security until I reach 70 in 2019. When I started Medicare, I paid $104 per month for part B in 2015. In 2016 that went to $121 with rumors that will increase to $149 next year. Those collecting Social Security and having Medicare deducted directly were held harmless, paying $104 in 2015 & 16 and probably will again in 2017. My question: when I start taking Social Security, will Medicare deduct the $149 or whatever amount at the time from my Social Security? Or revert to the 2015 amount when I first started Part A plus any COLA increases?
R.F.
Hi Jim. When you receive Social Security benefits, your Medicare Part B premiums must be deducted from your monthly benefits.
joanne
Hey ray, I’m 64 and filing for SS now.. @1100 a month. if I get married next year will I be able to change and collect on my spouses SS when he files @66 in 3 years? And will I get 50% of his SS ?
R.F.
Hi Joanne! Generally, you must be married for one year before you can get spouse’s benefits, and then you will have to -officially- apply for spouse’s benefits. To qualify for spouse’s benefits, your husband must be receiving retirement or disability benefits. When you qualify for Social Security benefits on your own record, we pay that amount first. But if you also qualify for a higher amount as a spouse later on, you’ll get a combination of benefits that equals that higher amount. Your benefit as a spouse can be equal to one-half of your husband’s full retirement amount only if you start receiving those benefits at your full retirement age. Visit our Retirement Planner: Benefits For You As A Spouse for more information. Thanks!
billy
I wont to now if I draw ssi andi start drawing my dead spouses ss will they out my ssi
R.F.
Thank you for your question Billy. Remember that benefits paid through the Supplemental Security Income (SSI) are based on income and resources. Your income and resources can affect your SSI benefits. We conduct “redeterminations” periodically to identify SSI recipients who –at any time- are potentially eligible for any or other Social Security benefits on their own record and the records of others (e.g., retirement, or survivor’s benefits). If you qualify for other benefits, you need to apply as soon as you are eligible. Failure to apply for additional benefits will result in suspension or termination of their SSI benefits. We hope this information is helpful.