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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Claudia
I started receiving benefits in Janary 2015 nine months shy of my FRA of 66. Of course SS didn’t suggest I wait and not lose valuable benefits. They said the difference was about $20 month and that my benefit was higher by about $100. Due to their advice I took my own benefit. I am divorced from an 11 year marriage and not remarried. My question is can I stop my own benefit and collect on my ex husbands even if it is slightly less or more than mine? If I do this before 4/30 will my reduced benefit amount still accrue with interest until age 70? Social Security told me on the phone I would have to repay all the funds which I can’t see as I am full retirement age now. I am planning to go there tomorrow without an appointment to speak in person.
**can I use either file and suspend or restricted application in my case.
Ray F.
Hi Claudia, under the new law, you can still voluntarily suspend benefit payments at your full retirement age (currently 66) in order to earn higher benefits for delaying. But during a voluntary suspension, other benefits payable on your record, such as benefits to your spouse, are also suspended. And, if you have suspended your benefits, you cannot continue receiving other benefits (such as spousal benefits) on another person’s record. For more information visit our Retirement Planner: Voluntary Suspension FAQs. We have developed instructions for our field office employees so they can answer questions before this change takes effect for suspension requests that are submitted on or after April 30, 2016.
If you have further questions or to make an appointment, please 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!
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melody leiber on April 19, 2016 at 2:28 pm said:
Its been over 1year,now,and my daughter has not heard anything from the ODAR judge for her 3rd appeal hearing. What is the problem? We live in Florida.
melody l.
Its been over 1year,now,and my daughter has not heard anything from the ODAR judge for her 3rd appeal hearing. What is the problem? We live in Florida.
Ray F.
Thanks for your comment, Melody. The length of time it takes to get a hearing can vary from state to state. We attempt to resolve all claims promptly, but there may be delays due to the volume of pending appeals in your area. The good news is that we are trying to conduct many of our hearings through video teleconferencing (VTC) to speed up the process. Visit our “Hearing And Appeals” web page for more information. Your daughter should continue working with the local hearing office on specific questions about her case. Thanks !
melody l.
Dont move to Florida. My daughter lost her SSDI because the ODAR judge stated she was no longer disabled. I was never called into the appeal hearing to witnrss on my daughters behalf. She applied do SSI and was also denied. Also, Social Security states my daughter received an overpayment of $29 thousand dollars. Something is definetly wrong with the system.
Rico
@Ray Fernandez: My wife will turn 62 in October 2016 while I turn 62 in April 2017. If my wife files for her SS benefits (“deemed filing”?) at age 62, can I still wait and file for my own SS benefits at a later date? How would this affect my own SS benefits?
Thanks.
Rico
Ray F.
Thank you for your question Rico. At age 62, 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. For individuals turning age 62 on or after January 2, 2016, and will be eligible for benefits both as a retired worker and as a spouse, the option to take only one benefit at full retirement age no longer exists. If you file for one benefit, you will be effectively filing for all retirement or spousal benefits. See “How the law is changing” or call our toll free number at 1-800-772-1213 and speak to one of our representatives for more information.
iris
I was tajen temporary disability. But is done already . The drn disable me i cant work no more. I apply for permanent disability. My question is if im aloud to apply for unemployment too. Ill been termed by my employer after almost 30 years of work.
Ray F.
Hi Iris, each state operates its own unemployment insurance program, click here to find contact information for your state’s unemployment office. Thanks!
CRD
Thank you so very much for such a timely response. The Company I have been employed with for the past 28+ yrs. is closing it’s location in my area, so I needed this above requested information in a timely manner. I plan to visit our local area SS office in the very near future and needed to know what to ask for.
In the event I explain the above situation and request a review of my records and for some reason this is denied (I. e. SS employee is not knowledgeable of re-computation rules, or says this is”äutomätically” done each year by the SS Office for all Recipients who continue to work, etc.).is there a recourse action such as sending a certified letter. If so, how do I obtain a current list of all my earnings (What do I ask for?; Is there a form to fill out?; Is there a fee for this?, etc.), and to what address would I send a letter for a review request?
Please bear with me as I am trying to get everything in order before I visit the local area SS office and I am sympathetic to under-staffing and under-training.
Any further information you can give me relevant to the above questions would be greatly appreciated,
I realize no system is flawless and that sometimes things can slip through, (Example: Recently I went to purchase a cell phone and a credit check showed me as being deceased.).
Again, thank you, and I apologize for the lengthiness of this request.
Knowing my previous employment history, It is hard to believe that an additional 15 – 16 yrs of employment at a consistently higher wage has had no more impact on my PIA, AIME, and monthly benefits. It would take considerable effort on my part to locate my personal records of exactly when I began receiving benefits (67 – 69) and if my original benefit amount was closer to $1400 or $1600; it actually could have been between $1500 – $1700; can this be verified at the local area SS office?
Ray F.
Hello again, CDR! First of all, most of the services provided by the Social Security Administration are free of charge. It is very likely that your benefit amount has increase because of your continued work, and the Cost of Living Adjustment (COLA) throughout the years, since you started to receive your retirement benefits. Any of our representatives will be able to review your record and verify your payment information. You may not even have to travel to the local Social Security office, you can write to us, or you can call our toll-free number at 1-800-772-1213. Our representatives are available Monday through Friday, between 7 a.m. and 7 p.m. Thanks!
Gloria J.
Hi. I am married and began to collect my own social security at age 62 and I just turned 65 on 4/10/16. I went to the social security office in Indio, CA and was informed that I could not change to a spousal benefit since I began to collect my own SS at age 62. Is this a new law that I cannot switch from my SS account and begin my spousal benefit? Could you please explain since it simply doesn’t make sense to me. Thank you kindly.
Ray F.
Thank you for your question Gloria. The information you received at your local Social Security office in Indio, CA is correct. The option to stop your own Social Security benefits and start collecting spouse’s benefits, only extends to individuals who have attained their full retirement age (currently 66). This option allows couples to start receiving spousal benefits at full retirement age, while letting their own retirement benefit accrue delayed retirement credits. Under current law, 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. Sometimes, a person may be eligible to more than one benefit at the same time. For example, a person may be entitled as a retired worker on his or her own record and as a spouse on another record. However, a person’s benefit amount can never exceed the highest single benefit amount to which that person is entitled. For more information, please see Retirement Planner: Benefits For You As A Spouse. We hope this helps.
CDR
I was born in 1932; I am 83+ yrs. old. My FRA was 65. I started collecting SS Benefits between 67 – 68 yrs. old. My initial FRB was between $1400 – $1600 mo. Since it has been so many yrs. I do not remember the exact FRB amount. It has increased through COLA for the past 15 – 16 yrs. to appx. $2000 mo.. Since I first began to receive SS benefits at 67 – 68 I have continued to work with the same employer an additional appx. 15 – 16 yrs. at a consistently higher wage than the 35 highest yrs. used to compute my original PIA or AIME. with receiving only COLA adjustments in the same percentage as all other SS recipients. Does the last appx. 15 16 yrs. of employment at a consistently higher wage affect (increase) my PIA or AIME or monthly benefits??? Since the only increases I have received over these yrs. have been COLA adjustments applied to all SS recipients, do I qualify for a recomputation of my PIA or AIME and /or am I eligible or entitled to make a request??
Ray F.
Each year, we review the records for all working Social Security recipients to see if additional earnings may increase their monthly benefits. If your earnings for the prior year are higher than any of the years we used to compute your retirement benefit, we will recalculate your benefit amount. If an increase is due, a new monthly benefit amount is established on your record automatically. It is likely that your benefit amount has increase based on your continuing to work, in addition to the COLA adjustments. You may contact us and request a review of your records. You can also call our toll-free number at 1-800-772-1213. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. You will generally have a shorter wait time if you call later in the week. We hope this information helps!
Lola
Hi, Ray. Please, I stopped working at age35, I’m 64, now not working. Do I still qualify to get benefit SSI from husband. We still happily married
Ray F.
Great going for you and your husband Lola. If you did not work long enough to accrue the minimum 40 credits (10 years of work) that you need to become eligible to receive retirement benefits on your own record, you could be eligible for spouse’s benefits on your husband’s record if he is currently receiving retirement or disability benefits. You can also qualify for Medicare at age 65. If you are ready, you can complete an application for spouse’s benefits online. please visit our Retirement Planner: Benefits For You As A Spouse for more information.
CC C.
I began to receive social security at age 66 under my ex-husbands (now deceased) account. I turn 70 in November and had planned to change over to my own account at that time, which will be a larger payment. Can I still do that in November or do I have to change it now before the end of April?
Ray F.
Hi CC Cirillo. If you voluntarily suspended benefits prior to April 30, 2016, you may remain in voluntary suspense status, and the new law will not affect you. See “What do the Recent Social Security Claiming Changes Mean for Me” for more information.
CC C.
Thank you so much for the quick reply! I understood that I had filed a “restricted application” for spousal benefits -not a voluntary file and suspend. Are those two different things?
Ray F.
Section 831 of the Bipartisan Budget Act of 2015 (BBA) eliminates aggressive claiming loopholes related to “deemed” filing and voluntary suspension of benefits. See “What do the Recent Social Security Claiming Changes Mean for Me” for more information.