What does the term "deemed filing" refer to?

The term "deemed filing" refers to the requirement that when an individual applies for Social Security benefits, they must be considered for both their own benefits and any spousal benefits they may be entitled to, simultaneously. This policy is designed to ensure that individuals receive the highest benefit possible at the time of their claim.

When a person reaches their full retirement age and applies for retirement benefits, if they are eligible for both their own benefits and spousal benefits, the Social Security Administration will automatically evaluate both claims. This may result in the individual receiving the larger of the two benefits, ensuring they do not miss out on the higher payment available to them. This rule can significantly impact the total benefits received over time, as taking one benefit alone may not provide the maximum possible income.

The other options describe different scenarios that do not accurately reflect the meaning of "deemed filing." For instance, simply having the option to file only for survivor or disability benefits or allowing early withdrawal without penalty does not encompass the simultaneous evaluation of spousal and worker benefits characteristic of deemed filing.