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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Pam
My husband died at age 48 in April of 1998. His birthdate is March 24, 1950. I will be 66 (full retirement age) on March 12, 2017. The social security office told me that I can draw on my husband’s social security at age 66 but would only be able to draw 82.5%. Why can I not receive his full retirement benefit? I am continuing to work at this point and will let my social security grow until I am age 70 and will at that time switch to my social security.
R.F.
Hi Pam. Your survivor benefit amount would be based on the earnings of the person who died. The more they paid into Social Security, the higher your benefits would be. Please visit our “Survivors Planner: How Much Would Your Benefit Be?” for more information. Please continue working with your local office for further assistance in this matter.
Roger
Hi, My wife will be 62 soon and will take SS at the time. We have 9 yr old son and she has 5 yrs of retirement credits earned in Germany. Will she be able to apply on line or must she do it in person at a Social Security Office?
R.F.
Thank you for your question Roger. To qualify for benefits under the U.S. Social Security program, a worker must have earned enough work credits, to meet specified “insured status requirements.” A worker generally needs 40 credits to be insured for retirement benefits. Under a Totalization Agreement, if a worker has some U.S. coverage but not enough to qualify for benefits, SSA will count periods of coverage that the worker has earned under the Social Security program of an agreement country. Please visit our International Programs webpage to learn more about the Totalization Agreement between the United States and Germany. Your wife may still be able to apply online, if she does not wish to use the online application, or if the application for the benefit she wants (Benefits for Children) is not available online, she can contact the local Social Security office directly. An appointment is not required, but if you call ahead and schedule one, it may reduce the time you spend waiting to apply. For further assistance, 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.
Laura
I just turned 65, but am working full-time in Singapore for an American University and do not plan to retire until age 68. From all I’ve read, I should first contact my health insurance company/US international health plan for US citizens living abroad to see if I should sign up for medicare. Is this correct?
R.F.
Yes Laura, we always suggest that individuals speak to their personnel office, health benefits advisor, or health plan representative to see what’s best for them, and to prevent any penalties or delayed enrollment in the future. Most people age 65 or older are eligible for free Medicare Hospital Insurance (Part A) if they have worked and paid Medicare taxes long enough. Although you cannot take advantage of free Medicare Part A outside of the United States, it’s free regardless. You can use our online retirement application to sign up just for Medicare and wait to apply for your retirement benefits later. To learn more about the Medicare enrollment periods visit http://www.Medicare.gov. Thanks!
Rosie M.
I will be 62 in 2018. My husband has been on disability for over 30 years. I make over 125,000 a year and have my 40 credits. I want to retire at 62 as my arthritis has been affecting my job. I have a few questions I am hoping you can answer. Will my husband be able to pull from my benefits when I retire or stay on his disability income? When would I be able to get on medicare after retirement? Will the money in my Roth account affect what my medicare benefits will be? At what age can my husband transition from disability to medicare? Would our medicare income be taxable at age 62? He is already 62 so can he transition from disability (not SSI) to traditional medicare? Thank you for your time.
R.F.
Hi Rosie. Your husband will have to contact us when you file your application for benefits, to see if he qualifies for a higher benefit amount on your record. Generally, to qualify for Medicare benefits you have to be age 65 or older. However, individuals receiving Social Security disability benefits, qualify for Medicare after they receive disability benefits for 24 months. To see how pension payments, annuities, and the interest or dividends from your savings and investments can affect your Social Security benefits, visit our Retirement Planner: Factors That May Affect Your Benefits. We hope this information helps.
Bernie
My wife and I are filing at the same time in 2017. Can she file online if she wants the spousal benefit? My estimate is $1500, her’s is only $400.
Thanks,
Bernie
R.F.
Thank you for your question Bernie. You and your wife can apply for benefits online. Our system is set up to take applications three months in advance. Remember that Social Security benefits are paid the month after they are due. So, for instance, if you want your benefits to begin with the month of May, you will receive your first benefit payment in June. If you cannot apply online or you decide not to finish applying online, for whatever reason, you can apply in person at any Social Security office. You could also apply by calling our toll-free number at 1-800-772-1213. Representatives are available between 7a.m. and 7p.m., Monday through Friday. Generally, you’ll have a shorter wait time if you call later in the day or later in the week. Happy retirement!
william
hi,.I want to stop my payment to sss but im only 35yrs.old but i have been paying my sss and reach into more than 120 contribution.Is this possible just wait until i reach 65 yrs.old,..And what benefit will i take if possible?
Thanks
R.F.
Hi William. People generally cannot voluntarily withdraw or stop participating in the Social Security program. Unless specifically exempt by law, everyone working in the United States must pay Social Security taxes on earnings from covered employment. The law makes an exemption only in very limited circumstances for members of certain religious sects.
Howard
Hi, I’m 37 yrs old, make $10,000-12,000. per year. Do I qualify for medicaid, or food stamps? I have no insurance and cannot afford a monthly bill. I am single, have a son I share 50% of time, but ex wife has full custody. I have Hep. C, and addiction problem, but don’t know if that would qualify for extra help. Thank you
R.F.
Hi Howard, some individuals may be eligible to receive social services from the state in which they live. These services include Medicaid, free meals, housekeeping help, transportation or help with other problems. You can get information about services in your area from your state or local social services office. Or you can visit the U. S. Department of Health and Human Services (HHS) web page for more information. We hope this information helps!
Elizabeth R.
Hello, I am planning to retire on November 25, 2017. I will be 65 years (and 2 weeks) old by then, and would like to start claiming SSS benefit. The annual SSS report that I get reminds me that if I started claiming before I am 66, my monthly social security benefit will reduce by 6 & 2/3 %. How soon can I apply for it? Is there a specific day or month of the year to do it? Thank you.
R.F.
hi Elizabeth. Our system is set up to take applications three months in advance. When you are ready, you can complete the online application for your Social Security retirement benefits in as little as 15 minutes. Also, you can create a My Social Security account to review your earnings record and get an estimate of your future benefits. In addition, we have a variety of calculators to help you plan for the future. Which calculator you choose depends on what you want to do. Thanks!
Peter S.
I am 65 and began receiving $146/month SS at 62, reduced by the WEP. My wife will be 62 in January 2017 and will receive $1,243/month in SS. Can I apply for spousal benefits at this time? I assume the spousal benefit would be a bit higher than my current amount. The rules that I read is that spousal benefits will not be reduced if “The last day of employment (that your pension is based on) is before July 1, 2004. ” I retired in 1998. Please help.
R.F.
Thank you for contacting us Peter. A pension based on work that is not covered by Social Security may cause the amount of your Social Security benefit to be reduced. Your benefits can be reduced based on one of two provisions. As you already know, your own Social Security benefit can be reduced based on the Windfall Elimination Provision or WEP. Your spouse’s benefits under Social Security may be affected by the Government Pension Offset (GPO). Regardless, you should still contact us when your wife applies for her Retirement Benefits.
Peter S.
My wife has applied with February 2017 as a start date. It is currently pending.
Sue C.
Hi,When my husband retires hopefully when he is 66, I will be 65. I have never worked .We have been married 43 years. My question is can I draw off of his social security?