Getting retirement benefits shouldnt be this complicated, writes social security expert larry kotlikoff. The calculation for spousal benefits is based on the retirement age. Married individuals are eligible to claim social security payments worth up to 50% of their spouse s benefit if that amount is higher than their. In general, the primary factors that determine when married people should take social security are the same as those for determining when unmarried people should take social security. It creates a larger monthly benefit amount that becomes the survivor benefit when the first spouse passes. You can collect benefits on a spouse s work record regardless of whether you also worked. The difference between claiming social security benefits as early as possible at age 62 or as late as possible at age 70, can increase my social security benefits by 76% for the rest of my life. This book gives a high level overview of social security with lots of detail about the history of social security interesting but of no practical use at all. If your own retirement benefit is lower than your spousal benefit, social security will pay you the higher amount.
If you are divorced, you may still be able to get benefits on your ex spouse s record. The two best books on social security white coat investor. Your spouse is collecting his or her own social security retirement benefit. Your full retirement age is based on your birth year 19431954. Deciding which social security benefits to take and when to take them is one of the most important and complex decisions you must make. Social security spousal benefits the easy guide youtube. With this in mind, ive developed the following list of frequently asked questions, a faq for social security spousal benefits. By a qualifying child, we mean a child who is under age 16 or who receives social security disability benefits. The spousal benefit can be as much as half of the workers primary insurance amount, depending on the spouse s age at retirement.
Important ages 1 full retirement age fra 1 milestone ages retirement benefits 2 requirements to qualify for social security retirement benefits 2 retirement benefit increases and decreases 3 primary insurance amount average and maximum benefits 4 earnings test 4 cost of living numbers for 2020 spouse and survivor comparisons 5 spousal and survivor percentages 6 comparison of spousal and. Social security spousal benefits can be as much as 50% of the higherearning spouse s full retirement age benefit but theres a lot more to these benefits than those simple basics. Benefits that are taken more than 36 months early are reduced an additional 512 of 1%. If you understand these rules it could make a big difference in the amount of benefits you. The final part of the book, part 4, has some other miscellaneous topics such as how to check your earnings records 4 page chapter 14, how social security is taxed 4 page chapter 15, how social security should affect your asset allocation 3 page chapter 16, and a few doover options 4 page chapter 18 like withdrawing an application. Spousal benefits may, however, be sharply reduced if either person starts early. But even if theres no death, you can collect a social security spousal benefit equal to half of what your spouse gets, if thats higher than what youd get on your own.
The ultimate guide to social security spousal benefits in. Navigating your various retirement options may seem like quite a task. Divorced spouses may qualify for widows or widowers benefits if the marriage lasted ten. If the spouse begins receiving benefits before normal or full retirement age, the spouse will receive a reduced benefit. Married to the deceased for at least nine months unless the death is accidental or. For couples who have not started benefits yetyou can maximize the survivor benefit that is available by having the highest earner of the two wait until age 70 to begin social security benefits. However, if a spouse is caring for a qualifying child, the spousal benefit is not reduced. As more common questions are brought forth ill update the list let me know if theres anything missing or if any of the faqs needs a better explanation. Your 2018 guide to social security spousal benefits the.
Benefits for spouses social security administration. For example i want to know whether the windfall elimination provision wep applies to spousal benefits. Benefits also are provided for disabled widows or widowers who have reached 50. Talk with your spouse about what would be best for each of you both now and in the future, run some numbers on a social security calculator, and consider consulting with an advisor who specializes in social security benefits. Maximize my social security when should i take social. Can i start spousal benefits and claim my own social. Teachers retirement and social security 2020 update. A new book explains that how and when you tap into. Social security is incredibly complicated, and it gets even more complex when there are two of you. Social security makes this a little bit like alphabet soup, as youll soon see. How to maximize social security with spousal benefits.
Social security benefits for widows and widowers dummies. Maximize social security with spousal benefits more to make the most of your spousal benefit, youll want to wait until you reach full retirement age to begin receiving social security payments. The following is an adapted excerpt from my book social security made simple. Online use our social security retirementmedicare benefit application to apply for retirement, spouse s, divorced spouse s or medicare benefits.
Social security spousal benefits are easy if you understand the dual calculations that must be performed for most couples. Your 2019 social security spousal benefits guide the. The spousal benefit is calculated as the greater of the individuals own worker benefit at full retirement age, or onehalf of the spouse s worker benefit at full retirement age. My colleagues and i have developed pathbreaking and widely acclaimed software tools to dramatically improve personal financial planning. Wife starts at age 62 and 1 month husband is 68 and 1 month at that time. Deciding the right time to claim social security when it comes to collecting social security benefits, there is no magic age. If your spouse is already receiving benefits when you apply, or if you and your spouse apply at the same time, we will also check your eligibility for benefits as a spouse. For retirement and spousal benefits, full retirement age will reach 67 for people born in. Your spousal or survivor benefits may be reduced, however, if you are under full retirement age and continue to work. The secrets to maxing out your social security by laurence j. Spousal benefits are reduced by 2536 of 1% for each month before your full retirement age, up to 36 months early, per the social security administration. Social security is phasing in the fra increase differently for different types of benefits. Social security spousal benefits dont reduce the higher earners benefit.
Social security not only provides benefits based on your own record, but also spousal and survivor benefits. The spousal benefit dates back to the early days of the social security program, when women tended to stay at home and take care of the kids, reports kestenbaum for npr. How a spouse can get benefits when his or her spouse. How are spousal benefits calculated for social security. To get a social security widow or widowers survivor benefit, you typically must have been married to a covered worker for at least nine months and be 60 years old. When delaying like this, it often also makes sense for the spouse with the lower wage base to. I tested 2 free social security retirement calculators. It may take a little effort, but the possible increase in your benefits. Social security retirement benefits and related planning topics explained in 100 pages or less. This option allows one spouse to file for benefits and the other spouse. Spousal benefits also apply to any couple married for at least 10 years, including divorcees. A littleknown social security spousal benefit option. Image via wikipedia one of the most confusing concepts in the social security retirement system is the spousal benefit.
Lowerearning spouses who claim their own social security benefit before full retirement age take a cut of as much as 25%. How to get whats yours from social security pbs newshour. A couples guide to filing social security spousal benefits. To qualify for survivor benefits, you must have been. My wife is currently 62 and would retire soon if we can determine how much in spousal benefits she would receive at 62, 63, 63, 65 and fra at 66 based on mine. Just like with social security retirement benefits, spousal benefits can be reduced if the recipient chooses to claim them before reaching full retirement age. Even if you have never worked under social security, you may be able to get spouse s retirement benefits if you are at least 62 years of age and your spouse is receiving retirement or disability benefits. Would you help us understand how to figure out my wifes options. Todays boomers can begin collecting full benefits at 66, tap in early. Economy may 03 5 secrets and 5 gotchas to help you navigate social security s new rules. How to calculate your own social security spousal benefits the right way the spousal benefit calculation is straightforward if you dont have a benefit of your own. If a surviving divorced spouse gets remarried before age 60, however, social security benefits will be denied unless the spouse was between 50 and 60 and disabled at the time of marriage. Be aware of an important change in social security law that affects how you can collect spousal benefits.
Social security spousal benefits are partial retirement or disability benefits granted to the spouses of qualifying taxpayers. Benefits for you as a spouse social security administration. The first thing to know is how social security spousal benefits are calculated. They can boost the payout when they collect a spousal. If you meet both of requirements for the gpo you are entitled to a social security benefit as a survivor or spouse and have a pension from a government job where you did not pay social security tax your social security survivor or spousal benefit will be reduced by. If the surviving divorced spouse gets divorced after age 60 or age 50 if disabled, the social security administration ssa will ignore the marriage. I do not know any other investment that can guarantee me a 76% increase in income over an eight year period.
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