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.
mike d.
I am collecting SS at 62, I understand I can make up to 17K. Then I am penalized a dollar for every 2 I earn. If I put the money over the $17K in a 401 K will that be exempt from the penalty?
Patsy K.
Dealing with the Social Security Administration is the single most frustrating experience of my Life. Hours on hold, 5 times calling to be told the system is now updated calling a few days later to find out it is not. Having to pay for my Medicare because of it which I dont owe. I am ready to cry! It’s Nuts!! $443.80 payment I have to make due on Christmas Day and I don’t owe it. Ten days notice to pay or get cancelled. Told I would get refunded in the next billing cycle which is three months. I have 10 days to pay you but you can take three months or more to pay me back money I do not owe. Update the dam system!!!
A.C.
Hi, Patsy. We are sorry to hear about your experience. You can submit feedback by visiting our Contact Social Security page at https://www.ssa.gov/agency/contact/. Once there, select the “Email Us” link. This will take you to the “Email A Question to our Support Team” form, where you can complete and submit a compliment, complaint, or suggestion. We hope this helps.
Bernadette A.
I will be turning 66 in February 2020. I do not wish to wait until I am age 70 to file…how soon can I apply for my benefits before turning age 66?
A.C.
Hi, Bernadette. Thanks for your question. Social Security retirement applications can be filed up to 4 months in advance. When you are ready to file, visit here. We hope this helps.
Jo
I do not understand the windfall elimination provision – I work in the US but have in the past worked in my home country (Belgium) – I will end up with retirement benefits that consolidate my contributions to both countries’ social security systems – will I loose benefits in the U.S. through the windfall elimination provision?
L.A.
Hi Jo. Thank you for your question. If you work in the United States and also in another country, different rules may apply in determining if you can get your benefit checks. The United States has bilateral Social Security agreements with over 26 countries, including a Totalization Agreement with Belgium. These agreements improve benefit protection for workers who have divided their careers between the United States and another country. For assistance related to your Social Security benefits, live outside of the U.S., please contact your local Federal Benefits Unit (FBU) for assistance with Social Security benefits matters.
The windfall elimination provision (WEP) applies to persons who worked in an employment where they did not pay taxes to the U.S. Social Security program. We hope this helps.
REBEKAH
If my husband, who turned 62 before 1/1/2016, files for spouse benefits on my record, but I was 62 AFTER 1/1/2016, am I deemed to have filed as well?
L.A.
Hi Rebekah. If your husband turned 62 before January 2, 2016, deemed filing rules will not apply to him if he files at full retirement age or later. This means that your husband may file for either spouse’s benefit or his own retirement benefit without being required or “deemed” to file for the other. In order for your husband to have file for spouses benefits under your earnings record, you must have file for benefits. Since you turn age 62 on or after January 2, 2016, you are required or “deemed” to file for both your own retirement and for any benefits you are due as a spouse, no matter what age you are. Inform yourself better here. We hope this helps.
Laura L.
I worked full time then I started collecting ss benefits August 1, 2019, I am working part time now and i am able to make $1470. per month. Am i able to earn a bonus from the time i worked before August 1, 2019? It would be over the $1470 per month.
L.A.
Hi Laura. For your protection, we do not have access to your records in this forum. To learn more about this issue, please visit our Frequently Asked Questions web page and read our publication titled “How Work Affects Your Benefits.” If you have specific questions about your personal situation, you can call our toll-free number at 1-800-772-1213 (TTY 1-800-325-0778), Monday through Friday, between 7:00 a.m. and 7:00 p.m. and speak with one of our representatives. Generally, you’ll have a shorter wait time if you call later in the week. We hope this helps.
daniel m.
someone told me you can get a lump sum bonus from social security at retirement by asking, what is that person referring to?
daniel m.
someone told me asking for a bonus at retirement gets you a lump sum of money.. what is the in reference to?
Douglas H.
I’m trying to find out if I can receive full, unpenalized benefits beginning at the year of my full retirement age. I was born in Dec. Can I begin collecting unpenalized benefits in Jan?
Marlene
I am turning 66 on July 25, 2020. Which is my full retirement age. When do I sign up for benefits. Is it in July or before. I was told by someone before in January. I’m confused.
Please help. Also my husband is still working. He is 2 years younger than me and would like to continue working 3-4 more years.
L.A.
Hi Marlene. Thanks for your question. Visit our internet page to find out your full retirement age. You can file for your Social Security retirement benefits as early as four (4) months before the month of your birthday. You can do so by applying online. For information about you or your spouse continuing to work and how employment affects your benefits, please visit our Retirement Planner: Getting Benefits While Working and also read our publication titled “How Work Affects Your Benefits.” If you have additional questions, please call our toll-free number at 1-800-772-1213 (TTY 1-800-325-0778), Monday through Friday, between 7:00 a.m. and 7:00 p.m. We hope this helps.