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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Annette
I have always wondered ad maybe you can help me get an answer, of why can’t I receive my Social Security payments anytime I want since the money was taken out of my paychecks to begin with and it is my money?
ST
The money deducted from your paychecks goes to pay current recipients. It is not a magic savings account for “your” money.
Kate
I’ve seen info on turning 66 and 62 in 2015 but what if a couple turns 65 and 62 before April 30, 2016. Can the primary one file and suspend and the 62 file under his or are we both 1 yr to young to lock in this benefit?
Kathy
what if I retire from teacher’s retirement system and then 2 years later, when I am 65 retire from social security(i will have 35 years of SS earning by then), will I be hurt by the windfall elimination?
Elsa M.
I worked 19 years for The County and I received an small pension .My spouse is retired from SS. I applied for benefits and They denied they say my pension is higher than the amount I could received for my husband benefits. I retired in April 2004 I did not signed a form that all County’s employees suppose to sign that let then know that SS is going to affect this form is given if the employee start with the County after April 2004.This is regarding the Off-Set low. I I started February 1986 and They never give any form to sign that SS benefits is going to be affect.
Ray F.
Hi Elsa, your spouse’s, divorced spouse’s, surviving divorced spouse’s or widow’s benefits under Social Security may be affected by the Government Pension Offset. Your own Social Security benefit can be reduced based on the Windfall Elimination Provision. For more information, go to our “Frequently Asked Questions” web page.
jean w.
I am 66 and currently receiving off my deceased husbands disability records which is higher than my own earning would have been when I retired at age 55. I also have an ex -spouse who just started drawing his ss last year when he turned 65. I am confused about what I should be doing before april 30th to maximize my earnings or safeguard my future options..My own record will never be more than what I now get ($1200 now compared to my $900 on my record)..and even waiting til im 70 probably would make a difference there. My living ex-spouse has retired at 65 so I assume his earnings are capped at the $1900 he is drawing and the benefit to claiming on his record (half of $1900) is non-existant….are there any circumstances that could make it beneficial for me to switch to his record in the future, and would I even be able to do that later since i’m on my deceased spouses record now? Does his earnings as far as what I would receive continue to grow depending on when I choose to file for them? .what if he dies? would I benefit from switching then, and could I even do that at a later time from my deceased spouses record?
S T.
Is it possible for someone who has been receiving disability benefits (SSDI) to stop payments and postpone to age 70 the switch to retirement benefits that would normally occur at age 66? Or does having received payments prior to retirement age take away the option for increased retirement benefits by suspending payments for up to four years?
Jenna Y.
Thank you for your question. When you reach your full retirement age, we will automatically convert your disability benefits to retirement benefits, but the amount remains the same. Starting the month you reach retirement age, you will get benefits with no limit on your earnings.
S T.
Yes, I knew that. But at that point, instead of automatically converting, can the beneficiary suspend retirement benefits to age 70 and then get a greater amount at the later age?
S T.
In other words, does someone who has been receiving SSDI have the option, upon reaching FRA, to delay retirement benefits to age 70?
S T.
Still hoping for an answer to my question: Can an SSDI recipient request suspension of retirement benefits to age 70 in order to eventually receive a higher monthly amount?
Denise M.
Can anyone explain why I continually attempt to create a account on this Site and I get absolutely have had no luck. I need to set up direct deposit and also get a replacement for a lost ck
Ray F.
Hi Denise, please call 1-800-772-1213 for assistance. After you hear “Briefly tell me why you are calling,” say “Help Desk” for help with a my Social Security account. Also, you can call your local Social Security office directly and explain your situation. Thanks!
Geraldine W.
Why is it that a divorce spouse have the right to draw your social security after you have been divorce for over 25 years?
Harry K.
Here is my question. I am 68 and receive SS benefits as of 2014 when I retired. I live overseas and my wife is Belgian. She is 11 yrs younger than me. She has a handicap and receives aproxiamtely $12000 per year from the Belgian multual (Euro conversion). At what age will she be able to apply for SS benefits? Is it 66 for her also. I know she will normally receive 1/2 of what I receive once she is eligible. I had also read somewhere that there is some sort of government issued card (used liek a credit card) in which benefits could be deposited. . If is that true, could you provide a site where to find that information? Thanking you in advance for your time and assistance? Harry
Ray F.
Thank you for using our blog to contact us Harry. Generally, spouse’s benefits begin at age 62. The spousal benefit can be as much as half of the worker’s primary insured amount at his or her full retirement age. See our International Programs web page to find specific information about how Social Security benefits could be affected while living outside the United States.
Direct Express is a prepaid debit card not available for beneficiaries living outside the United States. When you live outside the United States, you can choose to have your benefits sent electronically to a bank or financial institution in the United States or any country that has an international direct deposit agreement with the United States. You can contact your local U.S. embassy or consulate for any assistance related to your Social Security benefits. Also, our Office of International Operations home page provides more information to assist our customers living abroad. We hope this information helps!
Allene H.
I had an accident 7 years ago, and was married at the time. No one ever suggested that i apply for SSDI. Then my ‘husband’ and I divorced after 25 years of marriage. It was at that time I was told i was ‘out of range’ for being able to get SSDI. Yes, i went thru the 3 hearings…… i was within 5 months of being eligible for SSDI. So NO SSDI.
I turn 62 in April. I am fine for income until i am 65 and even at that from what i see I do not want to apply until 67 or so, due to more funds being available.
I will turn 62 in April of 2016. My ex will not turn 62 until 2025. Due to this new ‘law’ that was passed in the middle of the night, just like obamacare………how does this effect my receiving spousal ss? I was the one that supported us for 15 years……….
Ray F.
Hi Allene, 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 you qualify for benefits on your own record, we will pay that amount first. If the benefit on your spouse’s record is higher, you’ll get an additional amount on your spouse’s record so that the combination of benefits equals that higher amount. While early retirement reduces benefits, delaying your benefits beyond your full retirement age up to age 70 can earn you delayed retirement credits, which increases your monthly benefit amount. Click here to compute the effect of early or delayed retirement.
See “What do the Recent Social Security Claiming Changes Mean for Me” for more information on the new law.
Albert S.
Can a single person suspend their benefits? I remember seeing in a federal retirement website that you can. Also, I thought your monthly benefit is locked in at the age (my full retirement age which I am) you file. Can you receive the highly monthly (as if filing at age 70 for the first time) benefit by suspending until age 70? One more question; if you continue to work, can you earn credits on your account while it is in suspension? I thank you for your answers.
Ray F.
Yes Albert, you will still be able to file and suspend your benefits in order to earn delayed retirement credits. Also, for Retirement Benefits, we use the highest 35 years of earnings to compute an individual’s benefit amount, and your monthly benefit amount is established at the time you applied for retirement benefits. It is based on the amount of your average lifetime earnings and your age at the time you apply. If you work while you receive Social Security retirement (or survivors) benefits, you could get a higher benefit in the future. Please visit our Retirement Planner: Getting Benefits While Working, and read our publication: How Work Affects Your Benefits for more information.