The Old Rule
This question refers to a now-eliminated strategy called Restricted Application (sometimes called “claim now, claim more later”), although it was only ever available at full retirement age - never prior. Under this rule, a person could:
- File for a spousal benefit at FRA (“claim now”)
- Delay their own retirement benefit to grow until age 70 (“claim more later”)
Elimination
The Bipartisan Budget Act of 2015 phased out and ultimately eliminated Restricted Application for retirement benefits.
Today, anyone filing for Social Security is “deemed” to have applied for all benefits they’re eligible for. Social Security automatically pays whichever benefit is higher at the time of filing. This deemed filing, however, does not impact new benefits that would become available at a later date.
Example
A low-earning spouse starts their benefit at 62. The spousal benefit will be higher, but the high-earning spouse hasn’t filed yet. Because the low-earner can only receive the spousal benefit once the high-earner has filed, this is not an eligible benefit, and thus, cannot be deemed to have filed for it. Once the high-earner files for their own benefit, the low-earner can reapply for the higher spousal benefit.
The Exception: Survivor Benefits
This rule change applied only to spousal benefits, not survivor benefits. A surviving spouse still has flexibility to switch between benefits.
Examples:
- If the retirement benefit will be higher: The surviving spouse can claim widow/widower’s benefits as early as age 60 (reduced) and then switch to their own retirement benefit at FRA or even age 70 to receive their maximum amount.
- If the survivor’s benefit will be higher: The surviving spouse can claim their own retirement benefit at 62 (reduced) and then switch to the widow/widower’s benefit at FRA, receiving 100% of the deceased spouse’s amount. Note: survivor benefits do not earn delayed credits past FRA so there is no additional value in waiting beyond FRA to make the switch.
Incorrect Guidance
Many Social Security representatives tell clients flatly: “Restricted Application is no longer available.”
That’s only partly true. While it’s gone for spousal benefits, it still applies for survivor benefits. Helping clients understand this exception can prevent costly mistakes and ensure they receive the maximum benefits available.