The “deemed filing” rule limits spousal strategies by forcing you to apply for all eligible Social Security benefits at once. You can no longer choose to receive only a spousal benefit while letting your own retirement benefit grow. This change eliminates powerful strategies that, for some, could have generated an extra $60,000 or more in lifetime income.
The primary conflict stems from a federal law, the Bipartisan Budget Act of 2015.1 Section 831 of this act expanded the deemed filing rule, creating a direct clash with the goal of maximizing a couple’s total Social Security payout.2 The immediate negative consequence is that your first filing decision is now permanent and can lock you into a lower lifetime benefit, especially if you claim early.
This guide breaks down exactly what deemed filing means for you, how it impacts your financial future, and what strategies still exist to get the most from your benefits.
What You Will Learn
- 📜 The Old Rules vs. The New Rules: Understand the powerful strategies that existed before 2016 and see exactly why Congress eliminated them.
- 🎂 The Critical Birthdate: Discover if you fall under the old or new rules based on one specific date: January 2, 1954.
- 💰 Real-World Financial Impact: See clear, dollar-for-dollar comparisons of how the rule change affects the lifetime income of married and divorced couples.
- 💡 Exceptions and Modern Strategies: Learn about the three key groups who are exempt from deemed filing and the single most powerful strategy couples can use today.
- ❌ Mistakes to Avoid: Identify common and costly errors people make and learn how to navigate the system correctly, even if you get bad advice.
The Building Blocks: Your Benefits and the Rules That Govern Them
To understand the game, you first need to know the players. Social Security has a few key concepts that are the building blocks of every strategy.
Your Retirement Benefit: The Foundation You Built
Your primary retirement benefit is the amount you get based on your own work history. The Social Security Administration (SSA) looks at your highest 35 years of earnings to calculate your Primary Insurance Amount (PIA). The PIA is the full, unreduced benefit you are entitled to when you reach your Full Retirement Age.
Spousal Benefits: Social Security’s Family Safety Net
Spousal benefits are a core part of Social Security’s design as a family-based system. They were introduced in the 1939 Amendments to the Social Security Act to provide income for spouses who had little or no work history of their own, which was common at the time.
A spousal benefit can be worth up to 50% of the higher-earning spouse’s full PIA.4 You must be at least 62 years old and your spouse must have already filed for their own benefits for you to be eligible.7
Full Retirement Age (FRA): The Magic Number for Your Full Payout
Full Retirement Age (FRA) is the age when you can claim 100% of your earned Social Security benefit. This age is not 65 for most people anymore. It changes based on the year you were born.
| Year of Birth | Full Retirement Age |
| 1943-1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 or later | 67 |
Claiming before your FRA results in a permanent reduction to your benefits. Claiming after your FRA results in a permanent increase.
Delayed Retirement Credits (DRCs): Your Reward for Patience
For every year you delay claiming your own retirement benefit past your FRA, the SSA gives you a bonus. These are called Delayed Retirement Credits (DRCs). Your benefit increases by 8% for each year you wait, up until age 70.
Waiting from age 67 to 70 can boost your monthly check by 24% for the rest of your life. This is the most powerful tool you have to increase your benefit under the new rules.
A Tale of Two Timelines: The Rules Before and After 2016
The Bipartisan Budget Act of 2015 created a sharp dividing line. Your options depend entirely on whether you were born before or after January 2, 1954.
The “Grandfathered” Era: How Retirees Used to Maximize Benefits
If you were born before this date, you are “grandfathered” in under the old, more flexible rules.1 This gives you access to two powerful strategies that are now unavailable to younger retirees.
Old Strategy #1: The “Restricted Application”
This was the most popular strategy for maximizing a couple’s benefits. If you were in the grandfathered group and had reached your FRA, you could file a “restricted application” for spousal benefits only.
This allowed you to collect a spousal benefit from your partner’s record for up to four years (from age 66 to 70). At the same time, your own retirement benefit remained untouched, earning those valuable 8% annual Delayed Retirement Credits. At age 70, you would switch to your own, much larger, benefit.9
Old Strategy #2: “File and Suspend”
This strategy was the key that unlocked the restricted application for many couples. A spousal benefit can only be paid if the primary worker has filed for their own benefits.10 “File and Suspend” solved this problem.
A worker at FRA could file for their benefits and then immediately ask the SSA to suspend the payments. This technical act of “filing” made their spouse eligible to claim spousal benefits. Meanwhile, the worker who suspended their payments earned DRCs, maximizing their own future benefit.11
Why Congress Closed the “Unintended Loopholes”
Congress eliminated these strategies for three main reasons.1
- Inconsistent with Original Intent: Spousal benefits were created for dependent spouses, not for dual-income couples where both partners had substantial work records.
- Fairness: Lawmakers viewed getting paid one benefit while earning delayed credits on another as an unfair form of “double-dipping”.17 These strategies also tended to benefit wealthier couples who could afford to delay their primary benefits.
- Fiscal Concerns: The changes were part of the larger Bipartisan Budget Act of 2015, which aimed to shore up the Social Security Disability Insurance trust fund. Closing these loopholes was included as a cost-saving measure.
The New Law of the Land: What “Deemed Filing” Means for You
For anyone born on or after January 2, 1954, deemed filing is the rule that governs your claiming decision. It is not optional.
The Core Principle: One Application Triggers All Benefits
The SSA’s official rule states that when you file for one type of benefit (either your own retirement or a spousal benefit), you are “deemed” to have filed for the other benefit as well, if you are eligible.
You can no longer pick and choose. Your application triggers a review of all benefits you are entitled to. The SSA will then pay you the higher of the two amounts.
The Unforgiving Cutoff: The January 2, 1954, Birthdate Divide
This date is not random. The BBA 2015’s changes became effective for anyone who turned 62 (the earliest age of eligibility) on or after January 2, 2016.1 A person born on January 2, 1954, turned exactly 62 on that day, making them the first group fully subject to the new rules.
- Born BEFORE January 2, 1954: You are “grandfathered.” You can still file a restricted application for spousal benefits only at your FRA.4
- Born ON or AFTER January 2, 1954: Deemed filing applies to you at any age you file. The restricted application is not an option.
The “Spousal Top-Off”: How Your Benefit is Actually Calculated
If your spousal benefit is higher than your own retirement benefit, you don’t receive two separate checks. Instead, the SSA pays your own benefit first and then adds a “spousal top-off” to bring the total payment up to the higher spousal amount.
For example, Sandy’s own benefit is $1,000. Her spousal benefit is $1,250. The SSA will pay her $1,000 from her own record, plus a $250 top-off, for a total of $1,250.
Dollars and Cents: Three Scenarios That Reveal the Real-World Impact
The best way to understand the rule change is to see the numbers. Here are three common scenarios showing the financial consequences of deemed filing.
Scenario 1: The Married Couple’s Dilemma
Let’s compare two identical couples. In both cases, the husband’s PIA is $2,800 and the wife’s PIA is $1,200. The only difference is their birth year.
| The “Grandfathered” Couple’s Winning Strategy (Born in 1953) |
| Action at Full Retirement Age (66) |
| Husband files for his benefit and immediately suspends it. |
| Wife files a restricted application for spousal benefits only. |
| Total Income from Age 66-70 |
| Combined Monthly Benefit at Age 70 |
Now, let’s look at the same couple born just a few years later, who are subject to the new rules.
| The “Modern” Couple’s Forced Trade-Off (Born in 1955) |
| Action at Full Retirement Age (~66) |
| Wife files for her own retirement benefit to generate income. |
| Husband delays filing for his benefit until age 70. |
| Total Income from Age ~66-70 |
| Combined Monthly Benefit at Age 70 |
The modern couple loses $12,000 in income during their late 60s and receives $184 less per month for the rest of their lives.
Scenario 2: The Divorced Spouse’s Irreversible Trap
Deemed filing also applies to divorced spouses, but they have some unique rules. You can claim on an ex-spouse’s record if the marriage lasted at least 10 years, you are unmarried, and you are at least 62.20 Crucially, a divorced spouse can claim benefits even if their ex has not yet filed (as long as they have been divorced for at least two years).20
However, deemed filing creates a trap for those who file early.
| How One Early Decision Locks in a Lower Lifetime Payout |
| Situation |
| Filing Decision |
| The “Deemed” Consequence |
| The Math |
| The Outcome |
Scenario 3: The Survivor’s Strategic Advantage
The most important exception to deemed filing is for survivor benefits. A widow or widower who is also eligible for their own retirement benefit can choose which one to take without triggering the other. This allows for powerful strategic planning.
| Using the Deemed Filing Exception to Maximize Benefits |
| Situation |
| Strategic Action |
| The Consequence |
| The Outcome |
There are two other key exceptions: deemed filing does not apply if you are receiving spousal benefits while also entitled to Disability Insurance (SSDI), or if you are receiving benefits because you are caring for the worker’s child who is under 16 or disabled.
Navigating the New Rules: Costly Mistakes and Winning Strategies
The complexity of these rules leads to common and costly mistakes. Be aware of these pitfalls.
Top 5 Mistakes That Can Cost You Thousands
- Thinking You Can Still “Restrict” Your Application. This is the most common error. Unless you were born before January 2, 1954, you cannot file for only spousal benefits at your FRA.
- Not Understanding Early Claiming is Permanent. When you claim any benefit early, the reduction is for life. If you claim your own reduced benefit at 62, you can’t later switch to a full spousal benefit. You will only get a “top-off” added to your already-reduced amount.
- Believing Your Spouse’s Filing Forces You to File. Your spouse’s decision to claim their benefit does not automatically trigger an application for you. You still control when you file. Deemed filing only applies when you submit an application.
- Confusing Spousal Rules with Survivor Rules. The rules are completely different. Survivors have flexibility that spouses do not. Do not apply spousal benefit logic to a survivor situation.
- The Lower-Earner Claiming Too Early. The best strategy for most couples today is for the higher earner to delay until 70. For this to work, the couple needs income. If the lower-earner claims at 62 to provide that income, their own benefit is permanently reduced, which can lower the couple’s total lifetime payout.
The Modern Playbook: Do’s and Don’ts for Today’s Retirees
With the old strategies gone, the path to maximizing benefits is simpler but requires discipline.
Do’s
- ✅ DO have the higher-earning spouse wait until age 70 to claim. This is the single most effective way to maximize your joint income and, more importantly, the survivor benefit for the remaining spouse.5
- ✅ DO coordinate your decisions as a couple. Model different scenarios. The lower-earning spouse claiming at their FRA while the higher earner waits is often a good balance.
- ✅ DO check your Social Security statement annually for accuracy. Your benefits are based on your earnings record, and mistakes can be costly.
- ✅ DO understand the rules for divorced spouses. If you were married for 10+ years, you might be entitled to a benefit that has zero impact on your ex-spouse.
- ✅ DO consider your health and life expectancy. The longer you expect to live, the more valuable delaying your benefits becomes.24
Don’ts
- ❌ DON’T have both spouses claim at age 62 if you can financially avoid it. This locks in the lowest possible lifetime benefit for both of you.
- ❌ DON’T assume the advice your older friend or relative received applies to you. The birthdate cutoff means their options could be vastly different from yours.25
- ❌ DON’T forget about the survivor benefit. The decision the higher earner makes directly impacts the financial security of their surviving spouse for the rest of their life.
- ❌ DON’T delay claiming spousal benefits past your Full Retirement Age. Spousal benefits do not earn Delayed Retirement Credits, so there is no financial advantage to waiting.5
- ❌ DON’T make the decision in a vacuum. Your Social Security plan should be part of your overall retirement income strategy, including pensions, savings, and investments.25
Pros and Cons of Delaying Benefits Until Age 70
| Pros of Delaying | Cons of Delaying |
| Maximizes Monthly Payout: Your benefit grows by 8% each year past your FRA, resulting in a much larger check for life. | Requires Other Income: You must have enough savings or other income to live on during the years you delay. |
| Increases Survivor Benefit: The surviving spouse receives 100% of the higher earner’s benefit, providing greater financial security. | Longevity Risk: If you pass away earlier than expected, you may receive less in total lifetime benefits than if you had claimed early. |
| Inflation Protection: A larger starting benefit means your annual cost-of-living adjustments (COLAs) will be larger in dollar terms. | Market Risk: You may need to draw down your investment portfolio more heavily, exposing you to market downturns. |
| Simplicity: It is a straightforward strategy that eliminates complex timing decisions. | Health Uncertainty: A sudden health issue could make it difficult to enjoy the larger benefits later in life. |
| Peace of Mind: A larger, guaranteed income stream can reduce financial stress in your later years. | Forgoes Years of Payments: You miss out on several years of receiving Social Security income that you could have used or invested. |
Taking Action: The Application Process and How to Fix Errors
When you are ready to apply for benefits, you can do so online, by phone, or at a local SSA office.
What to Expect When You Apply: A Step-by-Step Guide
Be prepared to provide detailed personal information for yourself, your current spouse, and any former spouses. This includes:
- Social Security numbers, dates of birth, and places of birth.
- Dates and places of all marriages and how they ended (divorce, death).
- Information about military service or railroad employment.
- Your earnings for the current and previous year.
- Your bank account information for direct deposit.
The Misinformation Rule: Your Right to a Do-Over
SSA employees are human, and sometimes they make mistakes. The rules are complex, and it is not uncommon for people to receive incorrect or misleading advice. If an SSA employee provides you with misinformation that causes you to not file for benefits or to make a decision that costs you money, you have a right to correct it.
You can file a claim to establish a retroactive “deemed filing date” back to the point when you received the bad advice. To do this, you must :
- Submit a claim in writing.
- Explain what information was provided and why it was incorrect or misleading.
- Detail how, when, and where you received the information (date, office location, phone call, etc.).
- State how this misinformation caused you to make your filing decision.
Written evidence is preferred, but the SSA will consider your detailed statements and statements from anyone who was with you at the time.
Frequently Asked Questions (FAQs)
1. I was born after Jan 1, 1954. Can I apply for spousal benefits only and delay my own?
No. Because of deemed filing, your application for spousal benefits will automatically trigger an application for your own retirement benefit. You will be paid the higher of the two amounts.
2. Does my spouse filing for benefits force me to file at the same time?
No. Your spouse’s filing decision does not force you to file. Deemed filing only applies when you submit an application for benefits. You can still wait to file on your own timeline.
3. If I claim benefits on my ex-spouse’s record, will it reduce their payment?
No. Your claim for divorced-spouse benefits has absolutely no financial impact on your ex-spouse or their current family. Their benefit amount will not be reduced.
4. Does deemed filing apply to survivor benefits?
No. Survivor benefits are the most important exception. As a widow or widower, you can claim a survivor benefit and your own retirement benefit at different times to maximize your total income.
5. Can I “switch” from my own retirement benefit to a spousal benefit later?
No. You cannot truly “switch.” If you are already receiving your own benefit, you will continue to receive it. If you later become eligible for a higher spousal benefit, the SSA adds a “top-off” amount.