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.
Did you find this Information helpful?
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
Comments
Comments are closed.
Ineta c.
I never knew people still have powers and make things happened this way. my Husband James Scot left me for another woman for three months’ ever since then my life have been filled with pains sorrow and heart break because he was my first love who disflowered me when i was 21 years old. about two years ago, A friend of mine rose donly told me he saw some testimonies of this great priest tokubo that he can bring back lover within 24 hours, i laugh it out and said i am not interested but because of the love my friend had for me, she consulted the great priest on my behalf and to my greatest surprise after 24 hours my boyfriend is going to call me for the very first time after three months that he is missing me and that he is so sorry for every thing he made me went through. i still can’t believe it, because it highly unbelievable it just too real to be real. Thank you priest tokubo for bringing back my lover and also to my lovely friend who interceded on my behalf, for any one who might need the help of this great priest here is the email address: highpriesttokubo @ gmail. com
Leslie
why cant they just return the money they saved for us, in a lump sum and let us reinvest it? I have worked since i was 16 and just want my money back.
Anthony
I’m on disability now I worked from the age 16 up until year 2009 over 35 years. I came disabled in 2010 and haven’t been working. But in the past few months I’ve been improving with my disability, but still collecting disability,. My question is when I turn 66 this August and I read my disability turns over to SS (same amount as I was receiving with disability) and since now its SS instead of disability since / if I get better is it ok to work without losing the amount I was receiving from my disability and rule goes in place for normal retirement making a certain amount?
R.F.
Hi Anthony. When you receive disability benefits under the Social Security Disability Insurance(SSDI) program, we will automatically convert your disability benefits to retirement benefits, when you attain your full retirement age. The benefit amount will generally remain the same. Keep in mind that disability payments are established at the highest rate possible, meaning you get the highest monthly benefit amount based on your past earnings. If you were born January 2, 1943, through January 1, 1955, then your full retirement age for retirement insurance benefits is 66. If you work and are full retirement age or older, the amount you make at work will not affect your Social Security benefits, no matter how much you earn. Please read our publication “How Work Affects Your Benefits” for more information.
Joe T.
Hi – I’m helping my brother-n-law register to collect social security retirement benefits. He was married to a woman for 16 years and now she is 53 and he’s turning 66 in July. My question is will he be able to collect on her retirement benefits.
A.C.
Hi, Joe. In addition to be of age (62 or older), here are the other requirements for your brother in law to receive benefits, if he is divorced:
• He is unmarried;
• He was married to his ex-spouse for at least 10 years;
• His ex-spouse is entitled to Social Security retirement or disability benefits and,
• The benefit he is entitled to receive based on his own work is less than the benefit he would receive based on his ex-spouse’s work. This means that if he is eligible for retirement benefits on his own record, we will pay that amount first. If the benefit on his ex-spouse’s record is higher, he will get an additional amount on that record so that the combination of benefits equals that higher amount. For more information, he can check out our Retirement Planner: If You Are Divorced webpage. We hope this helps.
Connie D.
this may have been asked but sorry if I am repeating. I am 65 I started collecting SS at age 62, I was told that I could not collect on my ex husbands SS until he turns 62 which will be the spring of 2018. First question is, is that still applicable? Second question is will it make a difference if I wait until he is 65 or not? and is it possible to know what the amounts will be before I make a decision? I only get $679 a month and living on that is not fun at all to say the least, it comes, bills get paid and I wait another month.. Also I have recently started working full time but on a temporary basis as the job is permanent but has temporary times of not working throughout the year (kind of like a school teacher does). The question is will this in anyway affect how much I receive now or in the future?
A.C.
Hi, Connie. Thanks for your questions. Your ex-husband must be of retirement age (62 or older) or be receiving disability benefits for you to qualify and receive benefits on his record. If your ex-spouse does not apply for retirement benefits, but can qualify (at his age of 62 or later), you can receive benefits on his record if you have been divorced for at least two years. Keep in mind that if a person begins to receive benefits at age 62 or prior to their full retirement age, their benefits are reduced. Unfortunately, these reduction factors are permanently applied to all benefits in which an individual may qualify, this would include your divorced spouse’s benefits. Also, keep in mind that if you are eligible for retirement benefits on your own record, we pay that amount first. If the benefit on your spouse’s record is higher, you will get an additional amount on that record so that the combination of benefits equals that higher amount. See our Retirement Planner: If You Are Divorced for more information. To see if you’re eligible for a higher benefit amount, you will have to contact us when your husband turns 62. We hope this information helps.
William
I just applied for early Social Security Benefits at age 62 and for no apparant reason was DENIED! How can they do this?
I have the 40 credits of work history and everything else was in perfect order. How can they deny me what is OWED to me…???? Can anybody help..???
J.Y.
Hi William. Unfortunately, your question is a bit more complex than we can handle in this forum. For your security, we do not have access to information about your account, or the notice you received in this venue. We do ask that members in our Facebook community continue to work with our offices and financial institutions with questions about their specific case. We hope you get this matter resolved soon.
R.F.
Hi William. For your security, we do not have access to information about your account in this venue. If you received an official denial of your claim from Social Security, you have 60 days from the date you receive the letter telling you about our decision to request an appeal. You may request an appeal online. Please read our publication: “Your Right To Question The Decision Made On Your Claim” for more information.
Louise
Retire as as soon as you are eligible! You can still work and make more than the benefits you will receive later. Also if you’re retirement isn’t much you can file and receive spouse benefits which is more than yours. Check the facts and do what’s best for you, not what’s best for the government. If you pay a Mortgage and expect to live comfortably on your retirement think again! You will have to pay for Health Insurance and all your bills unless you are under that poverty level which may be good on health benefits, but you cannot do lots of things you are use to doing. We sound out the hard way how it all works. If you make too much money, have them take taxes out of your SS or Pension to get your monthly income below the dollar amount to get Medicaid and more food stamps, but again, you’re still going to haev a hard time if you have to pay a $500 Mortgage or Rent and utilities. Search out and learn all your options and how to make the system for for you, not against you. Get your house paid off or downsize as much as possible. Also do not let the phone company, cable company, satellite companies rip you off. Here’s what you do…. “call to cancel all those services” and watch how high they jump to keep you as a customer! If they don’t make you an offer you can afford move services to another company offering lower monthly payments. You have to play the game and learn the rules. No one should pay anymore than they can actually afford. There are too many who can afford it and pay full price without question, but retiree’s and disabled people need to know they CAN & WILL lower your monthly payments to keep you as a customer! If one person won’t call again next week and the week after until you get the right person that will do it for you.
ellie
I did leave a comment before and this is my second one. and I never get no reply. can you please explain to me how this work. thanks….
R.F.
Our apologies Ellie. As I’m sure you are aware, we get numerous of questions through our Social Security Matters Blog postings and we always attempt to respond to as many of the comments and questions as we possibly can. Our goal is to give readers information about a variety of topics, including our programs, online services, current events, and human-interest stories, usually in greater detail than typically shared on our other social media platforms. If we missed your question, consider re-submitting it again. Thanks
ellie
hi, my ex husband is 62 years old and he did applied for SSS. and im 42 years old. and we been married for 18 years and been divorced for 5 years. when my ex husband get his SSS. am im getting some too?
R.F.
Hi Ellie. If you are divorced, but your marriage lasted 10 years or longer, you can receive benefits on your ex-spouse’s record (even if they have remarried) if:
•You are unmarried;
•You are age 62 or older;
•Your ex-spouse is entitled to Social Security retirement or disability benefits and
•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.
Vi
When working under the age of 66 while receiving social security retirement and you go over the 1410.00 threshold at what point will you see your check reduced? Will your next check be reduced?
R.F.
Thank you for your question. When you receive Social security benefits and work at the same time, we usually ask that you give us an estimate of your earnings for the year. If later you realize your earnings will be higher or lower than you estimated, we ask that you notify us as soon as possible so that we adjust your benefits, if necessary. This will prevent that we pay you more than we should, also preventing to have an overpayment on your record. We do not have access to personal records in this forum. Please contact your local office, or call our toll free number at 1-800-772-1213 and speak with one of our representatives. Representatives are available between 7 a.m. and 7 p.m., Monday through Friday but you will generally have a shorter wait time if you call later during the day or in the week.