What the "Loophole" Was and Why It Closed

Before May 2015, a married person could claim their own Social Security benefit at their full retirement age, then switch to a spousal benefit later and receive a larger total payment over their lifetime. This was called file and suspend or the restricted application strategy. It worked because the rules allowed you to claim one benefit while delaying the other, collecting delayed credits on the benefit you weren't yet taking.

Congress closed this loophole in the Bipartisan Budget Act of 2015. The new rules took effect on May 1, 2015, and they apply to anyone born on or after January 2, 1954. If you were born before that date, you may still be able to use a restricted application — but only under specific conditions, and the window is narrowing as people age out of may be able to access.

The reason Congress acted was straightforward: the strategy let higher-earning spouses delay their own benefit to age 70 (collecting 124 percent of their full retirement age amount) while the lower-earning spouse collected a spousal benefit at 66 or 67. This cost the Social Security trust fund money without changing the total household benefit much. The law eliminated that option for most people.

Key Takeaways

  • If you were born on or after January 2, 1954, you cannot use the restricted application strategy; you must claim all benefits at once.
  • If you were born before January 2, 1954, you may still file a restricted application at your full retirement age, but only if you have not yet claimed any Social Security benefit.
  • A restricted application lets you claim a spousal benefit while your own benefit grows until age 70, but the spousal benefit is reduced if you claim before your full retirement age.
  • The maximum spousal benefit is 50 percent of the higher earner's full retirement age amount, and it shrinks if you claim early.
  • You must be married for at least two years to receive a spousal benefit, and your spouse must be at least 62 years old.

Who Can Still Use a Restricted Application

You can file a restricted application only if you were born before January 2, 1954. This means you are now at least 71 years old. You must also have reached your full retirement age (which ranges from 66 to 67 depending on your birth year) and never have claimed any Social Security benefit — not your own retirement benefit, not a spousal benefit, not a survivor benefit, nothing.

If you have already claimed any benefit, even if you withdrew that claim within 12 months, you cannot file a restricted application. The Social Security Administration treats that as having "deemed" you to all benefits, meaning you are now locked into claiming everything at once.

The restricted application is most useful when one spouse earned significantly more than the other. The lower earner can claim a spousal benefit at full retirement age (50 percent of the higher earner's full retirement age amount) while the higher earner's own benefit continues to grow by 8 percent per year until age 70.

How Much a Spousal Benefit Pays

A spousal benefit is calculated as a percentage of the higher-earning spouse's primary insurance amount — the amount they would receive at their full retirement age. The maximum spousal benefit is 50 percent of that amount, but only if you claim at your full retirement age.

If you claim a spousal benefit before your full retirement age, it is reduced. The reduction is steep: claiming at 62 instead of 66 or 67 cuts the spousal benefit by roughly 32 to 35 percent. This is different from your own retirement benefit, which also reduces early but by a different percentage.

The spousal benefit is also subject to the Government Pension Offset if you receive a pension from work not covered by Social Security — such as some government jobs. This offset reduces your spousal benefit by two-thirds of your non-covered pension amount. If your pension is large enough, it can eliminate your spousal benefit entirely.

Requirements to Claim a Spousal Benefit

You must be married to the person whose record you are claiming on. The marriage must have lasted at least two years, though there are exceptions if you have a child together or if your spouse is receiving disability or retirement benefits.

Your spouse must be at least 62 years old. They do not have to have claimed their own benefit yet — you can claim a spousal benefit on their record even if they are still working and have not filed.

You must be at least 62 years old yourself. If you are between 62 and your full retirement age, your spousal benefit will be reduced. If you are divorced, you can claim on an ex-spouse's record if the marriage lasted at least 10 years, you are at least 62, and you have been divorced for at least two years (or your ex-spouse is at least 62).

What Happens If You Claim Early

If you claim a spousal benefit before your full retirement age, Social Security reduces the payment. The reduction is permanent — it does not go away when you reach full retirement age. You will receive a smaller check for the rest of your life.

Additionally, if you claim before your full retirement age and you are still working, your benefit may be further reduced by the earnings test. In 2024, Social Security withholds $1 in benefits for every $2 you earn above $23,400 per year. The earnings test stops applying the month you reach your full retirement age.

For someone born before January 2, 1954 who is considering a restricted application, the math usually favors waiting until full retirement age to claim the spousal benefit. Claiming early locks in a permanently smaller payment and triggers the earnings test if you are working.

How the Deemed Filing Rule Works

If you were born on or after January 2, 1954, deemed filing applies to you automatically. This means that when you claim any Social Security benefit, you are deemed to have claimed all benefits you are may have access to to. Social Security will pay you the highest benefit you may have access to for, and you cannot choose to take one benefit while delaying another.

Deemed filing also applies to anyone born before January 2, 1954 who has already claimed a benefit. Once you have claimed anything, you cannot file a restricted application later. This is why the timing of your first claim is critical if you were born before 1954 and want to use the restricted application strategy.

The only exception to deemed filing for people born before January 2, 1954 is the restricted application itself. If you file a restricted application at your full retirement age without having claimed any benefit, you can claim a spousal benefit while your own benefit grows. Once you reach age 70, you can switch to your own benefit.

Strategies for People Born Before January 2, 1954

If you were born before January 2, 1954 and have not yet claimed any Social Security benefit, you have a narrow window to use a restricted application. You must be at least at your full retirement age to file one, and you must do it before you claim any other benefit.

The restricted application makes the most sense if your spouse's benefit is significantly higher than yours and you can afford to wait until age 70 to claim your own benefit. During the years between your full retirement age and 70, you collect a spousal benefit (50 percent of your spouse's full retirement age amount) while your own benefit grows by 8 percent per year.

If your own benefit would be nearly as large as your spouse's, or if you need the money before age 70, a restricted application may not help you much. In that case, you might claim your own benefit at full retirement age or earlier, depending on your circumstances and life expectancy.

Frequently Asked Questions

Can I still use the file and suspend strategy?

No, not in the way it worked before 2015. File and suspend allowed you to claim a benefit and then suspend it to earn delayed credits. That option is no longer available. If you were born before January 2, 1954, you can file a restricted application at full retirement age, which is the closest remaining strategy.

What if I already claimed my benefit early — can I undo it?

You can withdraw your claim within 12 months of filing and repay all benefits you received. After 12 months, you cannot withdraw. If you withdrew within 12 months, you can then file a restricted application at your full retirement age — but only if you were born before January 2, 1954.

Does my spousal benefit count toward my own retirement benefit later?

No. A spousal benefit is a separate payment based on your spouse's earnings record. When you switch to your own retirement benefit at age 70, you receive that amount instead. The spousal benefit does not add to your own benefit or increase it.

What if my spouse dies before I claim the spousal benefit?

If your spouse dies, you become may have access to to a survivor benefit on their record. The survivor benefit is usually higher than the spousal benefit would have been. You can claim a survivor benefit at any age 60 or older (or 50 if you are disabled), though the amount is reduced if you claim before your full retirement age.

Can I claim a spousal benefit if my spouse is still working?

Yes. Your spouse does not have to have claimed their own benefit for you to claim a spousal benefit on their record. However, your spouse must be at least 62 years old. If your spouse is working and has not yet claimed, you can still file for a spousal benefit based on their earnings record.