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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jennifer y.
Hi Im on ssdi since 2010 and was married 18 yrs. My ex husband is 62 and is still working ..can i rcve. An increase in my benefit amount based on his records ?
Ray F.
Hi Jennifer. If you are divorced, but your marriage lasted 10 years or longer, you may be eligible to receive benefits on your ex-spouse’s record at age 62. Also, if your ex-husband hasn’t applied for benefits, but can qualify for them and is age 62 or older, you can receive benefits on his record if you’ve been divorced for at least two years. Please visit our Retirement Planner: If You Are Divorced, then check out our publication, “What Every Woman Should Know” for more important information.
jennifer y.
Hi , I am 52 yrs old and have been on ssdi since 2011. My ex husband of 18 yrs.is 62 and choses to keep working… Can I receive an increase on my ssdi benefit based on his ss info .
Walter K.
Ray,
Thank you for your reply. Yes, that helps. Your answer supports the option we would like to take. We were given another appointment on May 23rd, four days after my wife turns 66. We were told by the agent that at that time she will apply for “file and suspend”, be denied, and then we could file an appeal. I told them we did not want to file for “file and suspend”. They refused to look at any documents that I presented regarding the spousal restricted option. Their response was pretty much “see you on the 23rd”. Someone needs to know that this office has not had the proper training regarding the new law. My question to you is who can we notify to make them aware of the incompetence in this office?
Ray F.
Hello again Mr. Klee. We apologize and we regret to hear you did not receive the level of customer service you expected. Please ask to speak to a supervisor on your May 23rd interview and present your evidence. To submit your comment, complaint or suggestion, you can write to us or send us an email message. Thanks.
Janet
I look forward to finding out what happens on the 23rd, Ray. It would be a shame and total disservice to you and your wife (and ANYONE who is trying to do the same) if you have to file an appeal because there are untrained people at the SS office. I just learned about restricted spousal benefits and it is not the same as file and suspend (which is getting all the press…and I wonder who is feeding the media on this one?)
Rita T.
As per Mr. Klee, We also had an appt. with social security set up over the phone on April 29. I am 65 and my husband is 67. When I turn 66 in a year, I intended to file and suspend or restrict, let mine grow while taking my husbands. He intends to file and suspend at this same appt. I believe, we received faulty information on our appt. call this past Tuesday with the agent at the field office saying I am not eligible because I am not already 66 and my husband shouldn’t bother filing per our appt. I was sure I was correct and she was incorrect. She told me I did not understand but said to call her if I found either myself or my husband had further questions. Well I consulted the SS site and was convinced I am correct. I called her back never received a call back but called the 800 number and an agent confirmed what I thought was correct. The following morning I called the agent again and this time she answered and she agreed to give me an another appt based on the original date of April 29. I do not want this to be a problem. Its simple questions – *Must my husband file and suspend at that time for us to be eligible?
*Am I eligible to file a restricted claim or file and suspend? *As I understand the information on the SS site we are “grandfathered in”. Is that correct? thank you
Janet
The Bipartisan Budget Act of 2015, passed by Congress and signed by the President in October, 2015, ended the possibility of claiming spousal benefits on a suspended benefit for suspension requests made after April 29, 2016. I believe that your husband could have filed and suspended prior to on or before this date because he was at FRA (full retirement age). Then you could have filed for restricted spousal benefits when you turned 66 (receiving half of his benefit and letting yours grow). Unless you can get a decision based on that botched April 29 appnt, I think the only option left may be for your husband to file SS close to your 66th birthday and then you file a restricted spousal. You would get half of his benefit thereby allowing yours to grow. His benefit would not grow, however. This is the grandfathered part you are referring to – you were both born prior to Jan 1, 1954. I paid for a report for a SS maximizing report on this website ($40): http://www.socialsecuritychoices.com/info/secretstrategies.php
Perhaps a report could help you in deciding if filing restricted spousal is worth it in the long run. I also received a similar report from my financial advisor (that was issued by an insurance company) that corroborated the information in the paid report.
Walter K.
My wife and I recently visited our local SS office. My wife will turn 66 on May 19. I am 67 and have been receiving my benefit since I turned FRA one year ago. My wife would like to take the spousal restricted benefit after her birthday and not take her benefit until she reaches 70. The agent told us this is the same as File and Suspend and that she does not qualify because her birthday is after the April 30th deadline. We disagreed and after much discussion asked to speak with her manager. The District Manager talked with us but agreed with the agent. We left the office very frustrated. After doing our own research, we are convinced we are correct in our strategy to maximize her benefit. According to what we have read about the new law, because she turned 62 prior to January 2, 1954, she is “grandfathered” in and is eligible to apply for the spousal restricted benefit. It seems that the agents at our local office have not received clear guidance on how to implement the new rules. Who would we contact to file a complaint?
Walter K.
Correction to my previous post. My wife was born prior to January 2, 1954.
Ray F.
Hello Mr. Klee, we apologize for the inconvenience and appreciate your feedback. Based on the information you provided, your wife should be able to restrict her application for benefits and apply only for spouse’s benefits to earn delayed retirement credits. See our Retirement Planner: Deemed Filing FAQ #4 for this information. According to the new rules, deemed filing only applies for individuals turning 62 on or after January 2, 2016. Voluntary suspension requests must have been submitted prior to April 30, 2016. Your wife should contact the local office again. Remember, she has the right to file an application for benefits and receive an official approval or denial notification of her claim from Social Security, which will provide her appeals rights, if in case she wishes to seek legal advice to verify our decision.
For more information and to make an appointment, please call our 1-800-772-1213 toll free number. Representatives are available Monday to Friday, between 7 a.m. to 7 p.m. You will experience shorter waiting time if you call later in the week. We hope this helps!
Janice
Hello,
Since construction went sour in 2008, (my husband work as drywall finisher until then) my husband and I decided to take our SS benefits at age 62 (7 months apart). Since I had been a homemaker raising two daughters most of my life working part-time (at times) over 45 years of marriage, I just draw $447 a month. However, 7 months later when my husband started drawing his SS $1346 a month they let me draw off his and increase mine to $668. My husband had work in manufacturing for around 10 years or more until it disappears in 1985. Then, he went into army for 2 years and after that he works as a drywall finisher until 2008 until construction went sour. At that time, since he couldn’t find work I went back to school and became a CNA and work to keep us afloat for 3 years until my health got where I could no longer work in that professional. Thank goodness finally, by then my husband had found a part-time job working as a floor tech in the hospital near us. Also, any savings we had was use during that 3 years time he couldn’t find a job. Consequently, if he had waited until he was 70 he would have draw $1786 a month SS. Therefore, he stills works now just enough hours to keep insurance on himself. At this time, I don’t have insurance until July when I turn 65. Finally, I will get to my question. Since he’s still working and paying into SS, will his monthly benefits increase or stay the same. So far, we have not seen an increase in his benefits even though he’s still paying into SS.
Janice
Ray F.
Thank you for your question Janice. Generally, if you continue to work while receiving retirement (or survivors) benefits, your monthly benefit amount could increase. Each year, we review the records for all working Social Security recipients to see if additional earnings may increase monthly benefits. The other way your monthly benefit amount could increase is based on the Cost-of-Living Adjustment (COLA), which is announced each year in October. We hope this information helps.
Anthony R.
How does this effect us if we’re already on SS?
Ray F.
Hi Anthony. See “What do the Recent Social Security Claiming Changes Mean for Me” for more information on the new law.
Leslie H.
I am 74 years old and have received Social Security
Benefits since the age of 65 years old. My wife is 67 years old and is planning to receive Social Security Benefits
at the age of 70 years.
Is there a procedure to maximize our benefits ?
Daniel S.
I just turned 65. I have been divorced 5 yrs after 21 yrs of marriage. She made more then me last 5 yrs of marriage. I was hoping to collect on her SS at 66 till 70 then retire and take my full bennefits. Is that still doable. Dan
Ray F.
Thank you for your question Mr. Sherman. A beneficiary who has reached full retirement age (currently age 66), may voluntarily ask that we suspend his or her benefits to earn delayed retirement credits. Please keep in mind that Section 831 of the Bipartisan Budget Act of 2015 eliminates aggressive claiming loopholes related to “deemed” filing and voluntary suspension of benefits. In your situation, it is best to contact your local Social Security office or call our toll-free number at 1-800-772-1213 and speak to one of our representatives for more information. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. 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.
Bob
My wife and I are going to file for Social Security benefits using the Start/Stop/Restart Retirement Benefit Strategy. My wife, a high earner compared to myself, is 62 and I have just reached my full retirement age (FRA) of 66 in March 2016. We were both born on or before January 1, 1954. When my wife applies for her retirement benefit now at 62, I will apply to immediately begin collecting a spousal benefit based on her earnings record. When my wife reaches her FRA , she will suspend her benefit and wait until 70 to collect a permanently higher benefit, namely the reduced benefit she was collecting augmented by the delayed retirement credits she earns during the months her benefit is suspended. I understand that once she suspends her benefits I no longer will receive a spousal benefit. I am currently receiving a survivor’s benefit, so will my benefit, at the time of her suspending, revert back to the same amount as I am receiving now with the survivor’s benefit? Also, when my wife restarts her benefits at age 70 can I apply for spousal benefits based on her own benefits once again at that time? (Spousal benefits based on her own benefits at age 70 will be larger than my own benefit when I am age 73.)
Ray F.
Hi Bob, the new law –effective April 30, 2016, makes changes to the aggressive claiming strategies that you have outlined. This law could also affect your scenario. Section 831 of the Bipartisan Budget Act of 2015 eliminates aggressive claiming loopholes related to “deemed” filing and voluntary suspension of benefits. For your and your wife’s situation, it is best that you contact your local Social Security office or call our toll-free number at 1-800-772-1213 and speak to one of our representatives. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. 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.
Bob
I would not consider our situation an aggressive claiming strategy or loophole because it is indeed possible to do so even after the new law takes effect. Jerry Lutz, the Social Security technical expert that vetted the book “Get What’s Yours: The Secrets to Maxing Out Your Social Security”, was able to answer my question without referring me to other sources. Here is his very short and succinct answer: “The answer to your first question is yes. Re your second question, you would not need to reapply for spousal benefits. Assuming that your spousal benefits are higher than your own at that time, your excess spousal benefit would resume automatically when your wife’s benefits are reinstated.” I hope this helps anyone who may be in the same situation as my wife and I. I am currently receiving survivors benefits from my first wife which is much smaller than the spousal benefit I would receive based on my current wife’s record whether I file now or at a later time. So this strategy will indeed work for us even after the new law takes effect, which was two days ago.
Izzi M.
I filed a restricted application for spousal benefits at age 66 to let my own account grow until age 70, which I will be at the end of the year. Am I grandfathered in and still able to switch in December, or should I do it before the end of April?