The Bipartisan Budget Act of 2015 made some changes to Social Security’s laws about filing for retirement and spousal benefits.
Determining when to start your Social Security benefits is a personal decision. We encourage you to research your options before you apply for benefits.
First Change: Timing of Multiple Benefits
(also called “Deemed Filing”)
There are incentives to delay filing for retirement benefits. Your benefits increase for each month you delay receiving retirement benefits between full retirement age and age 70.
Before the change:
Previously some spouses received spousal benefits at full retirement age, while letting the retirement benefits based on their earnings record grow by delaying to file for benefits.
What did the law change?
If you turn 62 before January 2, 2016, and:
- You are eligible for benefits both as a retired worker and as a spouse (or divorced spouse) in the first month you want your benefits to begin and
- You are not yet full retirement age, you must apply for both benefits (known as deemed filing). You will receive the higher of the two benefits.
If you turn 62 on or after January 2, 2016, and:
- You are eligible for benefits both as a retired worker and as a spouse (or divorced spouse) in the first month you want your benefits to begin, then:
- Deemed filing applies at age 62 and extends to full retirement age and beyond. In addition, deemed filing may occur in any month after becoming entitled to retirement benefits.
Deemed filing means that when you file for either your retirement or your spouse’s benefit, you are required or “deemed” to file for the other benefit as well. The Bipartisan Budget Act extends deemed filing rules to apply at full retirement age and beyond.
What is the reason for this change? Historically, if spousal benefits were higher than their own retirement benefit, they received a combination of benefits equaling the higher benefit. This change in the law preserves the fairness of the incentives to delay, but it means that you cannot receive one type of benefit while at the same time earning a bonus for delaying the other benefit.
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