Feds Shut 2 Loopholes In Social Security

NEW YORK (CBSNewYork) - The Federal Government has closed two loopholes in the Social Security system that could impact how much money will be in your benefits.

"I delayed retiring for three years because I wanted to make sure I would be able to afford not working," Gail Bertani told CBS2's Dick Brennan.

Bertani, 68, said she wanted to make sure Social Security is safe for the future.

"Clean up the loopholes. I want Social Security to be there for my children," she said.

Under the old law, which was useful for single-earner households, married couples could file for benefits, but then suspend them immediately. One would then get a spousal benefit based on the larger breadwinner's record.

"What the new law basically says is that if you claim and suspend your benefits, not only do you not get the benefits, but neither do any of your family members," said Webster Phillips of the National Commission on Social Security.

Another loophole that's been closed is geared more toweard dual-income couples. The law allowed people at the full retirement age of 66 to file a "restricted application," letting therm collect a spousal benefit while their own increased.

"There's something called a 'delayed retirement credit' which increases your benefit eight percent a year between age 66 and 70, that aggregates to a 32 percent increase to your Social Security," Webster said.

Experts say the law can be confusing, especially for people going through a stressful time of life, Brennan reported. If you need help and don't have a financial advisor, call the Social Security Administration for help.

"If you have a family that has a history of great longevity, your mother and father live into the mid-80s to the 90s, it's probably advantageous for you to wait as long as you can before you file for Social Security," Webster said.

Make sure to be saving long before you get there, too, Brennan reported. The new rules on restricted applications apply to people who reach age 62 in 2015.