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
Comments
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Relay
Are you tell me, what Social Security benefits is a widow entitled to? http://relayvibes.com
june
If I am divorced and my spouse is deceased how much am I entitled to of his benefits?
Bryant W.
I turned 70 in october, 2017 when am I required to take 10 pct of my IRA for tax purposes?
Dania C.
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Bruce T.
My wife and I were both born before January 2, 1954. It is my understanding that when I turn 66 (my FRA) my wife can claim her own benefit and I can claim a spousal benefit. Then when I turn 70, I can claim my own benefit and my wife can claim a spousal benefit on my record; her spousal benefit will be higher than her own benefit. I understand this process was detailed in Emergency Message EM-16004 which I can no longer find on the SSA website. Is my understanding correct?
Bruce T.
This article does not explain the correct policies for those born prior to January 2, 1954. People born before this date should research the options available to them since they may be more beneficial.
R.F.
Full Retirement Age: If You Were Born Between 1943 And 1954 & Retirement Planner: Recent Social Security Claiming Changes.
Relay v.
What percentage of Social Security benefits for divorced spouses? Entertainment with you- http://relayvibes.com
Patricia W.
I’m a widow and I take standard deduction when I filled my Taxs .
How much money can I make so I don’t have to pay taxes on any of my income.
R.F.
Hello, Patricia. Some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return) in addition to your benefits. For further income tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040. We hope this helps!
Karen S.
My spouse is retired, but I won’t be retiring for another three years. Can she take her own benefits now (she is 66), and then get half of mine, which will be much larger, when I take mine in three years from now? Is there something called a restricted benefit that she would file for? We want to be sure that if she takes hers now, she won’t be locked into her own small benefit only. Thank you!
vicky z.
i receive my deceased husbands benenfits. i will be turning 65 on october 29th this year. can i retire and claim my benefits plus the widow benefits?
R.F.
Hi Vicky, sometimes, a person could be entitled to more than one benefit at the same time and may receive a combination of benefits equaling a higher amount. For example, a person may be entitled as a retired worker on his/her own record and also as a spouse or widow on another record. However, this individual’s benefit amount can never exceed the highest of either benefit amount to which they are entitled to. To see if you qualify for a higher benefit than what you are currently receiving, contact your local office or you may call our toll free telephone number at 1-800-772-1213. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. Thank you.