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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Steven
above should say: I desire to file a “restricted” ex-spousal claim based on her earnings, effective AT my FRA this July.
Steven
I will reach my FRA, 66, this July 2016. I was married for more than 10 years and divorced in 1992. I never remarried. My ex-wife is currently 59 yo, BUT she is receiving SSDI; i.e. if she is receiving SSDI, then she is obviously “eligible” to receive SS benefits.
I desire to file a “restricted” ex-spousal claim based on her earnings, which would be less than my benefit at FRA, continue to work, then file based on my earnings in 2 or 3 years.
Two questions: First: My local SS office insists my ex MUST be at least 62yo for me to file the “restricted” ex-spousal claim. However, since she is collecting SSDI, I contend the 62yo criteria is moot. Which is it?
Second: My SS office insists that because I requested to file the restricted ex-spousal May 2 this year, the April 29 deadline to do so is past. I contend that because I was 62 yo BEFORE Dec 31, 2015 (I was 65 then) that the April 29 deadline stipulated by HR 1314 does NOT apply to me and that this July I CAN STILL file the restricted ex-spousal claim and let my earnings benefit grow until I decide to file on my own earnings. Is this so?
R.F.
Hi Steven, we regret any confusion. Even if your ex-spouse is receiving disability benefits, she must still meet the age requirement for retirement benefits (62 or older), in order for you to be eligible for Divorced Spouse Benefits.
However, you have the right to file an application for benefits and receive an official denial of your claim from Social Security, which will provide you appeals rights, if in case you wish to seek legal advice to verify our decision.
For more information or 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!
L C.
I just want to make sure I’m understanding this correctly. I will be 66 this July, and I am planning on receiving survivor’s benefits as I am a widow of a retired worker. I am currently working and will continue to work for at least a few more months to potentially a year, although my salary will be less than it has been for the past 5 years. My understanding is that since I will not be receiving my personal benefits, the amount will continue to increase by 8% per year until I reach the age of 70 when I switch to mine. Am I correct?
Albert K.
A slight correction and some changes to my above question …
(1) If I wait until age 70 to draw my social security benefits, does my spouse (who will then be age 63) receive 37.5% of my FRA (age 66) benefits … or 37.5% of my maximum (age 70) benefits?
(2) Once we both sign up for social security benefits, will my spouse and I (while we are both still living) be receiving TWO sets of benefits simultaneously … mine (full amount) and hers (37.5% of my benefits)?
(3) In the event I precede my wife in death, will my spouse’s benefits be increased to the same amount of benefits I was receiving until my death … or will she continue to receive just the same (lower) amount she had been receiving while I was still alive?
R.F.
Good questions Mr. Khair.
1- If your wife started to receive spouse’s benefits at age 63, her benefit amount will be about 37.5 percent of your primary insurance amount at your full retirement age or FRA. Her benefit as spouse does not include any delayed retirement credits you may be eligible to receive at age 70.
2- Each of you would receive a single (1) monthly payment per person.
3- If at the time of your death, your wife is receiving spousal benefit under your record, her benefit will automatically be converted to a survivors benefits once we receive the report of your death. To see examples of the survivor’s benefits your wife could receive, visit our Retirement Planner: How Much Your Benefit Would Be?
You can find more information about your benefits and your wife’s options visiting our website at http://www.socialsecurity.gov.
Albert K.
If I wait until age 70 to draw my social security benefits, does my spouse (who will then be age 62) receive 35% of my FRA (age 66) benefits or 35% of my age 70 benefits?
Margaret h.
I will be 64 in September. My ex husband is 54 10 years younger than me. What age for him will I be able to collect on his. I have not taken mine yet. Waiting till I’m 66. I’ve been a bartender for 44 years which means I started at the time when there was no place to claim tips nor dId people really tip that well back then and pay was only $1.10 an hour.Because of that my SS. is minimal. (Claim those tips or your retirement will suck)
R.F.
Hi Margaret. You may be eligible to receive benefits on your ex-husband’s record if he is entitled to Social Security retirement or disability benefits. If your ex-husband does not apply for his retirement benefits, but can qualify for them and is age 62 or older, you can receive benefits on his record if you have been divorced for at least two years. Here are the other eligibility requirements to receive benefits as a divorced spouse:
• You are unmarried;
• You were married to your ex-spouse for at least 10 years;
• The benefit you are entitled to receive based on your own work is less than the benefit you would receive based on your ex-spouse’s work.
Please visit our Retirement Planner: If You Are Divorced, then check out our publication, “What Every Woman Should Know” for more important information.
Bill
I am a 63 year old male and currently working full time. I am a paraplegic, uses a wheelchair, due to a spinal cord injury in 1984. Due to my injury, I have had recent health issues that have made it very difficult to continue working. Can I apply for reduced Social Security Retirement benefits and Social Security Disability benefits now? Will I receive the reduced retirement benefit while waiting for my Social Security Disability claim to be approved? If my claim is approved, at age 66 when the Social Security Disability benefits end, will I receive my full retirement benefits?
Bill
To add: I plan to leave my job soon then apply for benefits.
R.F.
Thank you for your question Bill. Yes, you can apply for reduced Retirement Benefits and apply for disability benefits at the same time. You can start receiving your retirement benefits while we consider your application for disability benefits and wait for a medical decision. Disability payments are established at the highest rate possible, meaning you could get a higher monthly benefit amount. If you are approved for disability benefits, we will adjust your payments accordingly. If you have more questions, or to make an appointment, call our toll free number at 1-800-772-1213, Monday through Friday between 7 a.m. and 7 p.m. and talk with one of our representatives. Generally, you will have a shorter wait time if you call later in the week. We hope this information helps you.
Barbara
Will Social Security notify me if my ex-husband passes away? I currently qualify of ex-spousal benefits but prefer to wait until my FRA (another 2 1/2 years) but would file immediately to receive widow benefits. I met with Soc Sec office but they would not tell me if he is living or not….please advise.
Adisa
I have one question. Last year I have 18 credit,this year results 14.I need know, why? Thank you.
R.F.
Thank you for your question Adisa. We ask our customers to review their statement of earnings carefully, using their own records to make sure our information is correct and that we’ve recorded each year you worked.
Remember, you’re the only person who can look at your earnings record and know whether it is complete and correct. You can use the historical series of earnings needed to earn one quarter of coverage, 1978-2016 and compare it to your earnings record. If you still believe the information is incorrect, call us at 1-800-772-1213 (7 a.m.–7 p.m. your local time) or contact your local Social Security office. Thanks.
Walter K.
Hi Ray,
Just wanted to give you an update. We received a phone call today from the Social Security agent that we have been working with at our local office. She said that they have now received additional information which confirms that the option that we want for my wife is correct. Wonder where that information came from.
We will keep our meeting on May 23 to finalize the application. Ray, is it correct that we should use Form SSA-2-BK to apply for the Spousal benefit?
Thank you,
Walter
R.F.
We are glad that someone from the local office contacted you. The Form SSA-2-BK is the paper application for wife’s or husband’s insurance benefits. We now provide individuals the opportunity to create a personal my Social Security account and apply online. However, in your case we recommend that you keep the appointment for May 23, and allow our representatives to process your wife’s application. Thank you!