FOR SPOUSES OPTION
In 2018, the average monthly Social Security benefit received by retired women was $1,297, compared to $1,627 for men.10
Because of changes brought on by the Bipartisan Budget Act of 2015, most spouses no longer have the option to choose between claiming benefits based upon their own work history or benefits based upon their spouse’s work history. Only those who were 62 years old or older by Jan. 1, 2016, retained the option to claim only spousal benefits when they reach full retirement age (assuming their spouse had either claimed benefits or was able to file and suspend their benefits). Doing so allowed them to continue working and accruing earnings contributions, as well as DRCs until they turn age 70. At that time, they could begin claiming their own, higher benefit amount. If you turned 62 after Jan. 1, 2016, you are no longer able to claim spousal benefits only. Instead, you will be subject to what are known as “deeming rules.” Based on the 2015 budget act, deeming rules apply through age 70 and mean that once you reach age 62, if you file for benefits and are eligible for both your own retirement benefit and a spousal benefit, you will be deemed to have applied for both benefits.8 This new provision also eliminated the restricted benefit option, which had allowed anyone who had reached full retirement age to apply for a restricted benefit based on his or her spouse’s earnings, provided the spouse was already receiving benefits. This was true even for the spouse who was the higher earner. He or she could restrict the benefit to the spouse’s lower benefit, allowing their own benefit to accrue DRCs up to age 70, and then switch to their higher benefit amount. With the new deeming rules, the restricted benefit is no longer available to anyone who was not 62 years old by Jan. 1, 2016.9
:6: This document is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market or recommend any tax plan or arrangement. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation. This content is not endorsed by the Social Security Administration, and our firm is not affiliated with the United States government or any other governmental agency. 8 Social Security Administration. January 2020. “Retirement Benefits.” https://www.ssa.gov/pubs/EN-05-10035.pdf. Accessed Feb. 29, 2020. 9 Dana Anspach. The Balance. Feb. 11, 2020. “Restricted Applications for Social Security Benefits.” https://www.thebalance.com/social-security-rules-for-restricted- applications-2388915. Accessed Feb. 29, 2020. 10 Social Security Administration. August 2019. “Fast Facts & Figures About Social Security, 2019.” https://www.ssa.gov/policy/docs/chartbooks/fast_facts/2019/ fast_facts19.pdf. Accessed Feb. 29, 2020. This document is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market or recommend any tax plan or arrangement. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation. This content is not endorsed by the Social Security Administration, and our firm is not affiliated with the United States government or any other governmental agency.
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