Recently, Congress tagged on some significant changes to Social Security onto a bill swiftly passed. With these new rules, the way you claim Social Security will be different. Be sure to understand them, and consider how you may have to amend your financial plan to accommodate them.

No More Double Dipping.

In the past, a retiree could claim their spousal benefit, and leave their own Social Security to increase. They could then claim the benefits based on their own work, which would be greater since they claimed them at a later age.

Now instead of the “file and suspend” rule married couples often chose, they will have to choose one or the other. Those born in 1954 will have their own Social Security benefits activated whenever they apply. An application for spousal benefits will be considered the same as applying for one’s own benefits.

If you are already 62 by the end of the year, these rules won’t apply to you. Widows and widowers will also be exempt, and will be able to collect survivor benefits while leaving their own to grow and claim at a later age.

Suspend Rules Change

Previously, if you had no need for your Social Security payments, you had the option to stop them and leave them to collect at a later date. Then when you resumed collecting payments, your payments would be higher.

Now, if you choose to suspend your benefits, no one will be able to make claims based off of you and you will not be able to make claims on anyone else. This could have huge implications for anyone who has a spouse or dependent children who claim benefits based off of your work record, as starting in May 2016, suspending your payments will mean they are ineligible to receive benefits until you resume your payments.

If suspending benefits is your best option, you may want to consider doing so in the next six months before the regulation goes into effect. Also, if you have already suspended your benefits, you can still delay your payments for up to four years.