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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Lynda
– I am hoping this is an easy answer to a question concerning spousal benefits.
Can a spouse (who has limited work experience with lower benefits) claim ss benefits on their own merit at the age of 62 (yes at the reduced rate) and then apply for spousal benefits when the spouse (higher work experience and higher ss benefits) applies for ss (which will be prior to full retirement at reduced benefit) benefits?
R.F.
Yes Lynda, you can file for your Retirement Benefits at age 62. Remember that if you qualify for benefits on your own record, we will pay that amount first. You will have to contact us again, when your spouse files for his retirement benefits. If the benefit on your spouse’s record is higher, you’ll get an additional amount on your spouse’s record so that the combination of benefits equals that higher amount. See “Benefits For You As A Spouse” for more information.
Diane
I am confused about the ex- spouse benefits. My ex and I were married for over 20 years. He turns 65 this month. I turn 65 in January. Our full retirement ages are 66. Do I have to wait until he turns 66 ( his full retirement age) to collect on his record, or can I collect now? I plan to defer my own benefits until I turn 70.
R.F.
Good question Diane. If your ex-spouse has not applied for retirement benefits, but can qualify for them (his age 62 or older), you can receive benefits on his record if you have been divorced for at least two years. If you are eligible for retirement benefits on your own record and divorced spouse’s benefits, we will pay the retirement benefit first. If the benefit on your ex-spouse’s record is higher, you will get an additional amount on your ex-spouse’s record so that the combination of benefits equals that higher amount. See our Retirement Planner: If You’re Divorced for more information.
Tommi
I am 71 y/o as of Dec. 21, 2016 and I’m retiring as of 12-31-2016. I signed up for Medicare (A) when I turned 65 and continued working full time and continued my medical benefits thru my employer. I was told to make sure that I sign up for Medicare Part (A) at 65 y/o so I don’t get penalized when I retire and do not have medical benefits with my employer and need Part (B) with Medicare. So I signed up for Part (B) and find out I have to pay $134./mo. What is the reason I signed up for Part (A) when I turned 65? Please answer this question…did the laws change?
R.F.
Hi Tommi. Medicare Part A is hospital insurance. Most people do not have to pay for Part A. Individuals are eligible for Medicare Part A based on their work records or on their spouse’s work records. Part B is medical insurance. Most people pay monthly premiums for Part B. The standard Part B premium amount in 2017 will be $134. If you are still working and have an employer’s group health insurance plan, you do not need to sign up for Medicare Part B right away. However, even if you do not sign up for Part B, you should still enroll in Medicare Part A, which may help pay some of the costs not covered by your group health plan. For general information about Medicare go to http://www.ssa.gov/disabilityresearch/wi/medicare.htm. For information on Medicare Premiums for Part A & Part B click here. We hope this information helps.
Judy
I was 68 in September and I have been on a restricted SS benefit since my 66th birhtday . I claimed on my husband who started SS benefits when he was 64 (he is now 75). I am still working and plan to work until I am 70 in Sept. of 2018. When do I need to file to switch to my own benefits? Is there a deadline? Can I do so after my taxes are filed in April of 2019 so my social security benefit can include my income from the previous year towards my new benefit? Will they only count the first nine months since I was born in September. Also, please clarify – do I have to take my benefit now because it would now be a little higher than what I receive now through the restricted application on my husband. I want to continue to let my benefit grow because my benefit when I am 70 will be larger than if I switched now. Again, main question is whether there is a deadline to switch.
A.C.
Thank you for contacting us, Judy. Our system is set up to take applications three months in advance, and we recommend that you apply for your benefits at age 70. Remember that the delayed retirement credits increase no longer applies after you’ve reached age 70. You don’t have to be concerned about waiting until after you file your taxes. Each year, we review the records for all working Social Security recipients to see if additional earnings may increase their monthly benefits. If you have additional questions specific to your case, please call our toll-free number at 1-800-772-1213. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. We hope this information helps.
Kitten
I am currently 65, my full retirement age is 66. I began taking ss on my record at age 62. My husband took his at age 64. I understand that both of us took reductions on our payments. My husband recently died, and I want to start collecting on his record instead because it is higher. However, I have read something that stated that in order for me to collect widow’s benefits of the total (reduced amount) that he has been receiving on his account I must wait until MY full retirement age to apply to start collecting on his record and quit collecting on mine. They said that if I switch to collecting on his record before my full retirement age I will not receive that full monthly amount that he was receiving at the time of his death.Is this correct? I really don’t want to miss out on the additional money from now until I reach 66 (5 months) however, I do not want to take a reduced amount of what he was collecting — I’d rather wait the 5 months to get the full amount that he was collecting. HELP?!
Kitten
Why did I not receive an answer to my question of Dec. 2?
R.F.
We are sorry we missed your question. Yes, in order for you to receive the maximum benefit amount on your deceased husband’s record, you have to be of full retirement age. To find out how much your widow’s benefit will be reduced prior to your full retirement age, click here. Each person’s situation is different. We recommend that you talk to a Social Security representative about the options available to you now. You cannot apply for survivors benefits online. You can apply for benefits by calling our national toll-free service at 1-800-772-1213 (TTY 1-800-325-0778) or visiting your local Social Security office. An appointment is not required, but if you call ahead and schedule one, it may reduce the time you spend waiting to apply, and you will also establish a protective filing date for your survivor’s benefits. We hope this information helps.
Sonny L.
November 30th I was reading on the http://www.socialsecurity.gov site a Social Security Administration publication titled “Thinking of Retiring” under a section labeled “Retirement age considerations” it states: If your full retirement age is 66, benefits will be reduced:
25 percent at age 62;
20 percent at age 63;
13 1/3 percent at age 64;
6 2/3 percent at age 65.
Does this mean that at age 62 my monthly payment would be 25% less until I reached the age of 66 and then my at 66 I would then begin to get the full retirement amount? And then at age 70 I would get another increase? Or would I get the 25% reduced monthly payment until I no longer was alive? (example 90 years of age)
Thanks in advance for taking the time to read my post as well as locating an answer and replying.
R.F.
Hi Sonny Lee.The 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.
Jesse
Question. My father-in-law just passed away. He was full retirement age and was receiving full benefits. His wife doesn’t turn 66 till January. Can she delay her benefits, take the full survivor benefit until she’s 70, then switch to take hers instead?
J.Y.
Sorry to hear about your loss, Jesse. If your mother-in-law has yet to file for retirement benefits, she absolutely can file for widow’s benefits first and delay filing for retirement benefits up to age 70, when she would receive the maximum delayed retirement credits. For more information, please check out our Retirement Planner: Other things To Consider. We hope this helps.
Jesse
Thank you very much. She turns 66 in January–but I don’t want her to miss November or December payments. Will she be eligible for 100% of spouse benefits, lets say next week when she is ready to go?
R.F.
Hi Jesse. Your mother in law can get widow’s benefits now. However, she attains her full retirement age in January, at age 66. This is when she can –potentially- receive her full widow’s benefit. At this time, we do not offer an online application for survivor’s benefits. We recommend that she contacts her local Social Security office as soon as possible. An appointment is not required, but if she calls ahead and schedules one, she will establish “protective filing” for benefits and it may also reduce the time she spends waiting to speak to someone. She 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. Please read our publication: How Social Security Can Help You When a Family Member Dies for more information.
Jesse
Thank you. Will she need a death certificate if she goes tomorrow?
R.F.
In most cases, the funeral home will report the person’s death to Social Security. If she has the death certificate, she should bring it with her. Click here to see what other documents she may need to provide. We hope this helps.
LEAH
I am 38 yrs old. Married for 10 yrs 11 months. And divorce for almost 2 yrs. My ex spouse he already get his SS pension because he is 62 yrs. And my daughter getting a pension too because she’s under 18. Do I in titled to my ex spouse pension now? Or I have to wait till I turn 62?
R.F.
Hi Leah, if your marriage lasted 10 years or longer, you may be eligible to receive benefits on your ex-spouse’s record at age 62 or older. See our Retirement Planner: If You’re Divorced for other eligibility requirements and more detailed information.
C
does a survivor’s benefit (age 69) amount include the spouse’s delayed retirement credits who did not claim until age 70, or is the benefit only calculated on the amount earned at full retirement age? Ex: at age 70 husband SS is $3000, at age 66 it was $2200. Does the surviving wife (including her own lesser SS) receive the $3000 or the $2200?
Harry P.
That’s exactly what I want to know.
Curious that’s the one question that doesn’t get an answer
R.F.
We’re sorry to have missed the question before. A widow’s benefit, at her full retirement age or older, in most cases, equals 100 percent of the deceased worker’s benefit amount, and includes the deceased spouse’s delayed retirement credits.
HMP
Found the answer: Yes, you are entitled to receive the $3000, not the $2200. If divorced, you are still entitled to the $3000 as long as the marriage lasted at least 10 years, and if you remarry after age 60, you are still entitled to collect as a surviving spouse.
R.F.
We’re sorry that we missed your question C. A widow’s benefit, at her full retirement age or older, in most cases, equals 100 percent of the deceased worker’s benefit amount, and includes the deceased spouse’s delayed retirement credits. We hope this information helps.
Hildred I.
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