Q&A: Making sense of Social Security deemed filing rules
Q: I was born in January 1951 and took my retirement benefit of $2,540 effective January 2016. My wife was born in August 1954. Her expected maximum benefit is $900 at age 66. Her spousal benefit should be $1,270 at that age.
We have been contacted by Social Security and told that since she was born after January 1954 she should apply for her benefit now. They said the new deemed application rule means that she will not be able to get any more by waiting to age 66 to apply. We had planned on her waiting until she is 66 to make sure she gets 100% of the spousal benefit. Now we don't know what to do. Do you think they are confused or must she apply now? – Tom Mertes, Maryland
A: There might be a misunderstanding about the message from Social Security, says Jim Blankenship, author of A Social Security Owner's Manual.
“Since your wife's date of birth is after 1953, deemed filing does apply for any application for Social Security benefits that she would file,” he says. “However, that does not mean that taking Social Security benefits right now, at her age 62, would result in her receiving the maximum monthly benefit amount.”
As you suggested, Blankenship says your plan of waiting until your wife reaches age 66 would be the way to ensure that she will receive the full 50% of your benefit. “If she were to file now, the maximum monthly benefit she would receive would be reduced to approximately 35% of your benefit amount,” he says.
Q: My ex-spouse and I were born in 1950. We have both reached full retirement age, and both of us earned nearly the same income and would have a similar Social Security benefit. We were married for 24 years, divorced for 12 years, and I am still unmarried.
Will I be eligible to file a restricted application on my ex-spouse's record and delay filing on my record at age 70 to maximize my Social Security benefit? Or is that not possible since my benefit, based on my record, would be more than one-half of the ex-spouse benefit on his record?– Pat Appel
A: Since you are at full retirement age, and married 10 years to the same person, and currently unmarried, Mark Orr, author of Social Security Income Planning: The Baby Boomer's Guide to Maximize Your Retirement Benefits, says you can file a restricted application for divorced spousal benefits and let your own benefit grow by 8% annual delayed credits.
For more, read:
- Information You Need To Apply For Spouse's Or Divorced Spouse's Benefits - Form SSA-2
- Retirement Planner: Deemed Filing FAQs
Robert Powell is editor of Retirement Weekly, contributes regularly to USA TODAY, The Wall Street Journal and MarketWatch. Got questions about money? Email rpowell@allthingsretirement.com.