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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amanda
Question, my uncle is turning 63 and would like to apply for early retirement. The issue is he is only showing 32 credits and not the 40. Will he need to continue to work 2 more years to qualify for full SSDI benefits and will not be able to apply for retirement if he does not have the 40 although worked 5 years out of the last 10?
R.F.
Hi Amanda. Generally, individuals will need to have 40 credits, or 10 years of work paying Social Security taxes, to qualify for any type of Social Security benefit. Nonetheless, you and your uncle should visit our Retirement Planner page for more information about your future benefits.
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Denise
I just turned 62 this year 2017 and a stay home grandma for my daughter ….watch her baby for my live in that pays for my living have no income and not planning on going back to work….separated since 1993 …not divorced yet but working on it…I know that’s along time to be separated but long story…he get benefits for his bipolar illness…..and would like to draw mine…I know it wont be as much but every penny help even if it something….would like to know if there is penaltys for drawing early and how does the taxes work on this each year?
R.F.
Hi Denise. Even if you have never worked under Social Security, you may be able to get spouse’s retirement benefits if you are at least 62 years of age and your spouse is receiving retirement or disability benefits. 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 learn more about taxes and Social Security benefits, visit our Frequently Asked Questions web page. We hope this information helps!
Magdy
Hi
I am 68 years old and have been a green card holder since I was 64. I have been working full time since I moved to the US from a non totalization agreement nation. I’m confused if am required to work for a minimum of 10 years to earn 40 credits or not.
Magdy
Hi Mr. Fernandez
I posted the above question 2 days ago hoping to get a response. Although you seem prompt in your replies, it appears my post was missed. I would appreciate your expert opinion.
Thank you
R.F.
We are sorry we missed your question Magdy. Based on the information you provided, you will need to have 40 credits, or 10 years of work paying Social Security taxes, to qualify for any type of Social Security benefit. Credits are the “building blocks” we use to find out whether you have the minimum amount of covered work to qualify for each type of Social Security benefits.
Please visit our International Programs web page for information on international Social Security agreements. You can call our toll free number at 1-800-772-1213 for further assistance. Representatives are available Monday through Friday between 7 a.m. and 7 p.m. Thanks!
Homer E.
I was denied unemployment in September of 2013 to help my sick wife, was forced to file for retirement at age 62 and 8 mos. 10 months later I suspended my retirement and went back to work. I’ve been working since. next month I turn 66 and was told I will never receive 100% benefit because of the 10 month draw. I was told at one time that because it was less than a year, they [ social security ] would recalculate. In the last two years I’ve received two payments and both were sent back to SS 1 was 1,700 and the most recent 1,866. Now im told i’ll receive 1,499 at 66 help.
R.F.
If your benefits were “suspended” because you went back to work and were making over the “allowable amount”, we will recalculate your benefit amount after you reach your full retirement age, and give you credit for any months in which you did not receive a benefit because of your earnings. Remember that starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your benefits. Please contact your local Social Security office for further assistance. Or call our toll free number at 1-800-772-1213 and speak with one of our agents. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. Thanks!
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Earika F.
I was married 26 years. My X was on sheriffs dept 25 of those years. We divorced when we were 49. He retired at 50 and started receiving his retirement. Should I be receiving my part of this or do I have to wait til I’m 62? He went to work full time at a job after retiring and is receiving retirement and a paycheck from his job, he worked in the courts and knew how to screw me out of his pension and I’m just worried he has figured out a way to screw me over on our social security ? I’m not very educated on this and hope u can shed some light on this or tell me who to call to get some answers please?
R.F.
Hi Earika, in regards to Social Security benefits, 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.
MARCIA B.
I started receiving widow’s benefits at age 60 but continued working full-time. I will be 66 this March and plan to retire in June. My spouse of 4 years will turn 65 in June and plans on working full-time for a few more years. Can he file for social security benefits while still working full-time and restrict to just my benefits? If so, must he wait till he turns 66?
R.F.
Individuals can still work and receive their Social Security retirement benefits at the same time. However, if they’re younger than full retirement age and make more than the yearly earnings limit, we will reduce their benefit. For 2017 that limit is $16,920. This limit changes in the year you reach full retirement age. To learn more, please visit our Frequently Asked Questions web page or read our publication “How Work Affects Your Benefits”. If you have additional questions, please call our toll free number at 1-800-772-1213, Monday through Friday between 7 a.m. and 7 p.m. and talk with one of our representatives, or visit our “Retirement Planner” web page for more information.