Turning 66 This Year? Time Running Out for Social Security’s Restricted Benefit
Category: Financial and taxes in retirement
May 4, 2019 — Were you born before Jan. 2, 1954? Are you married? Not already claiming a Social Security retirement benefit?
If you answered yes to all of these questions, time is running out on a very valuable Social Security claiming strategy, the Restricted Benefit option. In brief, this option allows you (or your spouse) to collect a spousal Social Security benefit while preserving the right to collect on your own benefit later. If you turn 66 this year, now is the time to think about taking it.
The key point for eligibility to take the Restricted Benefit is being born before Jan. 2, 1954. If you were born after that date, the term “deemed filing” applies to you when you apply for Social Security retirement benefits, and you are not eligible for the Restricted Benefit option.
In addition to your birth date, the two additional questions we asked at the beginning also apply. Are you married? If you are not, it doesn’t work because you have no spouse to claim a spousal benefit on. If you are already receiving Social Security benefits, it is too late to reverse that decision. So you answered yes to all three questions – great – the Restricted Benefit might be for you.
But first, a little background.
Comments on "Turning 66 This Year? Time Running Out for Social Security’s Restricted Benefit"
Harold says:
My 62 year old wife drAws ssi disability. I am 66 and and haven’t file yet. Can i file 1-2 her benefits?
Babyboomer55 says:
Harold, I really doubt that's possible since she's on SSI, which means she earned less than you did.
Wil Ferch says:
You.... the husband turning 66 and who has not yet claimed SS benefits....can.....when you reach 66, claim a spousal benefit on your wife's earnings. Unfortunately, not the other way around if she is currently taking a disability benefit. ( well, she CAN.....but she would first have to give back ALL her prior disability earnings, which is insane for most people). So....your spouseal benefit doing this....would be 50% of what she is currently getting ( and will continue to get)...and you can do this for as many years as you wish between now ( age 66) and age 70....when your benefits cap and it's not worth waiting further. For every year you wait before you "convert back" to your own working-history benefit....your benefits will increase 8% for each year you wait...so if you wait fully until age 70.....you will then get 32% more at age 70 than you would have gotten at age 66, once you convert. Of course, your spousal benefit will cease then, since you're back on your own basis.....
Ken Hoch says:
My wife is taking her benefit at 66, her FRA. As the higher earner, I am waiting until 70, to get the increased benefit. When we visited our local Social Security office, we were told a surviving spouse is not eligible for the higher benefit paid at age 70. She would only be eligible for what my benefit would be at my FRA of 66. Considerably lower, but still more than her own benefit.
Editor's note: Based on our research and info from SSA.gov, we don't think the SS office's advice was accurate. It is true that while both are alive the spousal benefit is based on 50% of the other spouse's FRA benefit. But, if the spouse dies and he or she claimed at age 70, the survivor gets whatever the deceased was getting. See
https://www.ssa.gov/planners/survivors/onyourown.html (bottom of article - How much would your survivors receive)