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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verica b.
My daily concern is about an average retired individual.Im one of them.I had to retire earlier at age 63.being alone,I had to go back to Work few times a month.Need to maintain house,pay health insurance.part B,Medicare,
Supplemental health Inc.Dental inc.Cant work forever.Thankful i have SS.Retirment from Work.What truly,Shock me.our Medicaid low income Recipients.Those who Emigrated ,5 year ago,To the USA. receiving all the Benefits,Free.Plus caring pensions from Europe,Plus Working,Plus having dwellings Renting abroad,native home.How is this allowed by Our Government ?Tolerated?While many other Retiries are Working,or Unable,to get help? How Generoues is This.They are treated By the Socialism rules.Can SS or other government Agencies,anaswer ,look into this problem? Appreciate Your Answer!
Tom
My wife (currently 72 yrs old) claimed & started receiving benefits at age 64. I am retired, 65 yrs old & have not claimed anything yet. My FRA is Jan 2017. My wife’s benefits are lower than what I will get when I file.
At FRA, can I file a restricted spousal benefits application & get 50% of my wife’s benefit and suspend my benefits so they continue to grow? I’m not sure how the new 2016 rule change impacts my scenario.
Thanks
Ray F.
Thanks for your question Tom. A beneficiary who has reached full retirement age (FRA) may voluntarily ask that we suspend his or her benefits to earn delayed retirement credits. To learn more, visit our “Retirement Planner: Suspending Benefit Payments”. See “What do the Recent Social Security Claiming Changes Mean for Me” for more information on the changes of the new law. If you have further questions please contact the local Social Security office or call our toll-free number at 1-800-772-1213. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. Thanks!
Thomas m.
I retired age 49 in 2009 planning on using ss when I reach 62 unless cola has supplemented me enough.
do I need to do anything. pension is about $3000 month.
wife left at same time but is 8 years younger
Ray F.
Congratulations Thomas! The earliest age you can apply for reduced retirement benefits is 62. We suggest you create a My Social Security account to review your earnings record and get an estimate of your future Social Security benefits.
Paul
I began collecting SS @ 62 due to health issues. My wife is still employed and wants to work until she reaches 66. Can she suspend at that time and draw on my survivor benefits until she reaches 70?
Ray F.
Thanks for your question Paul. A beneficiary who has reached full retirement age may voluntarily ask that we suspend his or her benefits to earn delayed retirement credits. Visit our “Retirement Planner: Suspending Benefit Payments” for more information. Please keep in mind that the new law –effective April 30, 2016- makes changes that could affect your wife’s situation. Click here for complete information.
To learned more about survivor’s benefits, visit our “Survivors Planner: Survivors Benefits For Your Widow Or Widower“. We hope this information helps.
Joseph L.
Hi,
I turned 62 on Jan. 1, 2016. I’m receiving retirement benefits. My wife is age 58, still working. Based on new
laws made by Bipartisan Budget Act of 2015 for claiming
retirement benefits, am I qualified/or eligible to apply for
Deemed Filing ?
Hal
I AM 71 AND MY WIFE US 67 WE ARE BOTH ON SOCIAL SECURITY,IF I PASS AWAY WILL MY WIF BE ABLE TO GET SURVIVER BENEFIT
FROM MY SOCIAL SECURITY
Ray F.
Thank you for your question Hal. Yes, your wife would be eligible for Widow’s Benefits. For more information, please go to our Survivors Planner page and read our publication: How Social Security Can Help – When A Family Member Dies.
Jacki
My husband is 68 and will file for SS benefits when he turns 70. I turned 62 October 2015. Our plan is for me to apply for spousal benefits at my FRA using a restricted application and then take my own benefit at 70. He will be on SS when I apply for spousal benefits. Does he need to file and suspend before April 30, 2016 to keep the spousal benefit option available for me? Thank you.
Ray F.
Hello Jackie, thank you for your question. Based on the information you provided, you will be able to restrict your own application and file for spousal benefit. This is primarily because you were 62 years old prior to January 2, 2016. Moreover, your husband would already be 70 year old and collecting his Social Security benefit by the time you attain your full retirement age. Please see: Bipartisan Budget Act of 2015 and our Retirement Planner: Deemed Filing – Frequently Asked Questions page for more information. If you have further questions, please contact your local Social Security office or call our toll-free number at 1-800-772-1213. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. Thanks!
Sharon S.
Question: If I was married for over 10 years and then divorced but remarried at 57 and then divorced again, will I be able to receive death benefits for my frst husband’s SS when he passes away?
I am presently 67 and drawing spousal benefits. I don’t plan to draw my benefits until I am 70 in about 2 and a half years; however, if my first husband should pass away, I would want to draw his benefits as a widow. Again, I am presently not married.
Jenna Y.
Good question, Sharon. You are eligible to receive survivors benefits from your first spouse’s record because your second marriage has ended and you are currently not married. In order to receive these benefits, you must have been married to the deceased worker for 10 years or more and are currently unmarried. For further information on Divorced Spouse Survivors benefits, please visit our Survivors Planner: If You’re The Worker’s Surviving Divorced Spouse. We hope this information is helpful.
Carolyn
The FAQ vaguely says “If you are married and file a separate return, you probably will have to pay taxes on your benefits.”. So I found the following assertion in another publication:
“An older spouse might be retired receiving SS based on his own work/earnings record, while the younger continues employment & receives no SS benefit. In this case, even tho they file a joint return, the younger spouse’s earnings would not be included in the older spouse’s earnings test.” Does this mean – in my case – that my SS benefit won’t be taxed at all if:
1. I will be at or beyond FRA when I start collecting in late 2016 or early 2017
2. My SS benefit will be under $20K (with no other taxable income of my own)
3. My husband has not reached FRA & continues to work. Does it matter what his income is?
Also, if this is the case for the next 8 years or so, do you advise or does it matter whether we file joint or separately? It seems clear that my tax would be $0 if I were single. Same if married –or no?
Any links that explain how much of my income (e.g. 0%, 50%, 85%) would be taxed would be appreciated. I value your advice.
Jenna Y.
Hi Carolyn, thank you for your questions. Everyone working in covered employment or self-employment, regardless of age or eligibility for benefits, must pay Social Security taxes. Also, you will have to pay Federal taxes on your Social Security benefits if you file a Federal tax return as an individual and your total income is more than $25,000. For further income tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040 or you can visit the IRS website. We hope this information is helpful.
Deanna N.
My husband died at age 59. I have been claiming his Social Security Benefits since his death. I had planned to wait to collect mine at age 70, & was told I could do this. Recently, I was told that as of April 1st, (30th?) I will need to claim my own SS benefits, since I just turned 66. I’m having difficulty finding specific information on this & our local office is closed this afternoon.
Ray F.
Hi Deanna, you may be referring to Section 831 of the Bipartisan Budget Act (BBA) which eliminates aggressive claiming loopholes related to “deemed” filing and voluntary suspension of benefits. This new law applies to individuals who request a suspension on or after April 30, 2016. See “What do the Recent Social Security Claiming Changes Mean for Me” for more information. If you have additional questions, please call our toll free number at 1-800-772-1213 for further assistance. Representatives are available Monday through Friday between 7:00 a.m. and 7:00 p.m.