Can I Claim Social Security at 62 Then Switch to Spousal Benefit?

Social Security benefits represent a significant financial resource for many individuals in retirement. Understanding the various claiming strategies and their implications is important for maximizing lifetime benefits. Making informed decisions about when and how to claim benefits can profoundly impact one’s financial well-being throughout retirement. A clear understanding of the rules is necessary.

Understanding Your Own Retirement Benefit

An individual’s Social Security retirement benefit is determined by their Primary Insurance Amount (PIA). This PIA represents the monthly benefit an individual would receive if they claim benefits exactly at their Full Retirement Age (FRA). The Social Security Administration calculates the PIA based on an individual’s average indexed monthly earnings (AIME) over their 35 highest-earning years. Earnings from previous years are indexed to account for changes in average wages over time, ensuring that past earnings reflect current value.

Claiming Social Security benefits before reaching one’s FRA results in a permanent reduction of the monthly benefit amount. For example, if an individual’s FRA is 67, claiming benefits at age 62 would result in approximately a 30% reduction from their PIA. Conversely, delaying the claim beyond FRA, up to age 70, can lead to an increase in benefits through delayed retirement credits. Each year benefits are delayed past FRA, up to age 70, the monthly benefit increases by a certain percentage, typically 8% per year.

Understanding Spousal Benefits

Spousal Social Security benefits offer a financial safety net for eligible spouses, derived from the working spouse’s earnings record. To qualify for a spousal benefit, a marriage must have lasted for at least one continuous year. The claimant’s spouse must also have filed for their own retirement or disability benefits for the spousal benefit to commence. A spouse can claim their spousal benefit as early as age 62, provided the primary earner has already filed.

The maximum spousal benefit amount is 50% of the working spouse’s Primary Insurance Amount (PIA). Similar to individual retirement benefits, claiming a spousal benefit before one’s Full Retirement Age will result in a permanent reduction to that benefit. For instance, if a spouse’s FRA is 67, claiming a spousal benefit at age 62 would lead to a reduction of approximately 25% from the maximum 50% of the worker’s PIA.

The Deemed Filing Rule and Its Effect

The “deemed filing” rule is a crucial aspect of Social Security claiming, particularly for individuals considering both their own retirement benefits and spousal benefits. This rule dictates that for those born on or after January 2, 1954, if you apply for either your own Social Security retirement benefit or a spousal benefit, you are “deemed” to have applied for both. The Social Security Administration will then pay you the higher of the two benefit amounts, after any applicable reductions for early claiming. This means that you cannot claim one benefit while allowing the other to grow.

Historically, some individuals could employ a “restricted application” strategy. This allowed a person who had reached their Full Retirement Age (FRA) to file only for a spousal benefit while letting their own retirement benefit continue to grow until age 70, accumulating delayed retirement credits. After reaching age 70, they could then switch to their own, now higher, retirement benefit.

However, the Bipartisan Budget Act of 2015 significantly altered these rules. For individuals born on or after January 2, 1954, the option to file a restricted application has largely been eliminated. This change means that the strategy of claiming your own benefit at 62 and then “switching” to a higher spousal benefit later is generally no longer possible for most people. The rule applies to retirement insurance benefits and spousal benefits. If you apply for benefits before your Full Retirement Age, and you are eligible for both your own and a spousal benefit, the Social Security Administration will automatically calculate and pay you the higher of the two, with both subject to early claiming reductions.

Specific Spousal Benefit Scenarios

While the deemed filing rule broadly applies, certain situations present exceptions or different considerations for spousal benefits. Divorced spousal benefits are a primary example, allowing a former spouse to claim benefits based on an ex-spouse’s work record. To qualify, the marriage must have lasted at least 10 years, the claimant must be currently unmarried, and generally must be at least age 62. The ex-spouse must also be entitled to Social Security benefits, though they do not necessarily need to be claiming them.

Under specific conditions, divorced spousal benefits can sometimes be claimed independently of one’s own benefit, even for those subject to deemed filing rules. If the divorce occurred at least two years prior, a divorced spouse who has reached full retirement age may be able to claim benefits on an ex-spouse’s record without being deemed to have filed for their own benefit. This allows their own benefit to continue accruing delayed retirement credits.

Another exception to deemed filing applies to individuals receiving spousal benefits while caring for a child who is under 16 or disabled. In such cases, the deemed filing rule does not apply, and the individual may be able to receive spousal benefits without being automatically deemed to have filed for their own retirement benefit.

The Application Process for Social Security Benefits

Applying for Social Security benefits, whether for retirement, spousal, or divorced spousal benefits, involves a clear procedural path. Individuals need to gather specific documents and information to complete their application. This includes their Social Security number, birth certificate, and marriage certificate if applying for spousal benefits. For divorced spousal benefits, a divorce decree is also required. Applicants should also be prepared to provide their W-2 forms or self-employment tax returns for the previous year, as well as bank information for direct deposit of benefits.

The Social Security Administration offers several convenient methods for submitting an application. The most common approach is to apply online through the SSA’s official website. Alternatively, individuals can apply by calling the SSA’s national toll-free number or by visiting a local Social Security office in person.

After the application is submitted, the SSA reviews the information and verifies eligibility. Applicants will receive a confirmation of their application, and processing times can vary, but generally take a few weeks to a few months. The SSA will then send an award letter detailing the approved benefit amount and the effective date of payments. It is advisable to apply approximately three months before the date you wish your benefits to begin to allow ample processing time.