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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Rich
I will be 67 this July. I filed and suspended last July. My wife will turn 66 this July. Can she file for spousal benefits in July from me? It is unclear if the new laws going into effect May 1 will negate her ability too file for the spousal benefit.
audrey
I applied for SS in Dec 2015, birth date is Jan 2016 to meet 62 years old. I got no response after I did my application online. Who do I contact? I misplaced my online information to go back online to get my update.
R.F.
Hi Audrey, if you are unable to check the status of your application online, please call us at 1-800-772-1213 (TTY 1-800-325-0778), Monday through Friday from 7 a.m. to 7 p.m.; or contact your local Social Security office for assistance.
Mary C.
I am 59 and a widow. I lost my husband two years ago at age 65. I understand that I am eligible to collect under his benefits at age 60. If I decided to collect now (age 60), is there an income limit, or do I need to pay back 2 dollars for every 3 I earn?
R.F.
You’re correct Mary, a widow of a person who worked long enough under Social Security can receive reduced benefits as early as age 60. (age 50 or over if you are disabled). Also, if you work and receive Social Security benefits and make more than the yearly earnings limit, we will reduce your benefit. If you’re younger than full retirement age, we deduct $1 in benefits for each $2 in earnings you have above the annual limit ($15,720 in 2016). Visit our Retirement Planner: Getting Benefits While Working, and read our publication: How Work Affects Your Benefits for more information.
Bob
Mr. Fernandez…I reached FRA(66) in Nov 2015. I now want to file for and suspend my SS benefit prior to the April 30, 2016 deadline to preserve my spouse’s ability to receive her spousal benefit at her age 66 (May 2017). I do not plan to receive my SS benefit until my age 70 assuming continued good health. Do I file on line, get my determination and then suspend or can I file my application on line and then immediately call/email SSA that I want to suspend my benefits? Thank you for your response.
R.F.
Thank you for your question Bob. Please contact your local Social Security office directly, or call us at 1-800-772-1213 Monday to Friday Between 7 a.m. and 7 p.m. and ask a representative to help you. Even setting up an appointment weeks in the future will establish a protective filing date. In some situations, we will honor requests received before April 30, 2016, that we are unable to process until after April 30, 2016. For example, there could be a situation where you are already full retirement age, and you contact us to apply for benefits before April 30, 2016, expressing your intent to apply for, and suspend, your benefits. If we cannot take your application until June 2016, we will honor the request for voluntary suspension that we received before April 30, 2016.
Carolyn
I reached FRA (66) in Oct 2015. In Jan 2016 I called to file & suspend. Pls confirm that my benefit amount still increases each month, e.g. if I start collecting SS at age 68, I earn more than if I start at age 67. A recent rep told me no increase b4 I turn 70. File & Suspend doesn’t kill delayed income credits. Does it?
R.F.
Hi Carolyn, Social Security retirement benefits are increased by a certain percentage if you delay your retirement beyond full retirement age. You earn delayed retirement credits automatically when and if you delay getting your benefit up until age 70. Delayed retirement credits increase your monthly benefit. Most people age 65 or older are eligible for free Medicare Hospital Insurance (Part A). As a reminder, you can sign up for Medicare only online when you delay your retirement benefits. Thanks!
tony
Why are they only singling out married couples? There really other reason why social security is going broke. In our statement it tell us how much we will receive if we become disabled, survival benefits, and retirement benefits.
No where on the statement does it mention auxiliary benefits. I can’t even find it in the Code of Federal Regulations. Where in the law does it entitle people to auxiliary payment? It should be posted in our statement for people to see. You are just giving it to people who knows about the loophole.
The only mention of auxiliary benefits is in your handbook.
https://www.ssa.gov/OP_Home%2Fhandbook/handbook.05/handbook-0501.html
Elizabeth V.
In 2013 my 97 year-old stepfather’s accountant filed his return without deducting his healthcare expenses. As a result, his income was shown to be too high. Social Security reduced his monthly payment accordingly because of his income. I filed an amended return, showing his actual income for 2013 and sent a copy to Social Security, asking that my stepfather’s benefits be restored to their appropriate amount. I am the administrator of his estate and have full power of attorney to handle all of his affairs. The Social Security Administration finally answered my first letter after several months and denied reinstatement of his full benefits as they were still referring to the original 2013 1040 and not the amended 2013 1040 return. For years 2014, 2015 and now 2016, the SSA continues to use his same income without considering the amended return. Who do I need to talk to to get his full benefits reinstated and file for the benefits he has been shorted these past few years?
R.F.
Hi Elizabeth, we apologize for the delay and the inconvenience. Since it sounds like your stepfather has trouble managing his Social Security account, you may be interested in applying to become your stepfather’s representative payee. Please note that having a power of attorney, being an authorized representative, or having a joint bank account with the beneficiary, is not the same as being a payee. These arrangements do not give you legal authority to negotiate and manage payments for someone receiving Social Security or SSI payments. You must apply for and be appointed as a representative payee by SSA.
If approved to serve as your stepfather’s representative payee, it will make it easier for you in the future to update account information for him. It would be helpful to obtain a statement from his doctor. The statement should say that your stepfather is not able -mentally and physically- to take care of himself and that you are the person responsible to keep his finances in order. We understand how inconvenient this may be for you, but hope you understand our role in protecting everyone’s personal information.
Please read our publication: A Guide For Representative Payees. If you have specific questions, or to make an appointment, please call 1-800-772-1213 between 7 a.m. and 7 p.m. to speak to one of our representatives. Or you can contact your local Social Security office. Thanks.
tony
If you qualify for SSI at age 65, then can you collect SSI at age 65 and hold off on collecting Social Security retirement until the age of 70.
R.F.
Hi Tony. Social Security has strict guidelines that apply to individuals receiving benefits under the Supplemental Security Income or SSI program. First of all, SSI beneficiaries are required to report their income or resources available to them. If an SSI recipient is insured and qualifies on his or her own record for their own retirement benefit, they are required to apply at age 62. Failure to apply for additional benefits will result in suspension or termination of their SSI benefits. We hope this information is helpful.
Chris
Yi Yi Yi This particular blog is a mess with many incorrect responses! The responses you should pay attention to are the ones with the Social Security logo alongside the name… in this blog Ray Fernandez, Public Affairs. How do I know this? Because I retired from SSA after 22 years where I strove to provide excellent customer service and correct info on the benefits. You can also contact the SSA 800# at 1-800-772-1213 (hours 7 am to 7 pm your time) or your local office. If you are unsatisfied with a response you believe is incorrect or you don’t understand please ask to speak to a supervisor. I was taught to provide world class service and some of the comments I see on here now and then are not only mind boggling but sometimes rude as well as incorrect. Good luck to all of you and Ray you are doing a great job providing them with references to help them find the correct answers to their questions.
R.F.
Thank you for your comment and kind words Chris, and for reminding our followers that our official agency responses are tagged with our SSA seal. We hope you are enjoying your retirement. Take care.
john w.
I would like to know if I’m entitled to more Social Security benefits, before the new law H.R.1314 takes effect May 1, 2016. I’m on social security at the present . My question is, I worked for the Federal Government for 25 yrs . and while working for the Federal Government I also worked for a private company and paid into social security over 40 yrs. This is why I’m asking if I am entitled to more money under this new law?
Thank you,
John A
R.F.
Hi John. The Bipartisan Budget Act of 2015, made some changes to Social Security’s laws about claiming retirement and spousal benefits. Section 831 of the law (entitled “Closure of Unintended Loopholes”) made several changes to the Social Security Act and closed two complex loopholes that were used primarily by married couples. Our Retirement Planner: Recent Social Security Claiming Changes explains what is changing and how it might affect you. If you still have questions, or need further assistance, you should call our toll-free number at 1-800-772-1213. 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 in the week. Thanks!