The following is a guest post from marotta wealth management. 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. 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. You can apply for benefits if you have been married for at least one year. Maximize my social security was developed by boston economics professor larry kotlikoff. Jul 01, 2016 the first thing to know is how social security spousal benefits are calculated. I had heard i could apply for a spousal benefit and wait until 70 to collect my own social security benefit. This option allows one spouse to file for benefits and the other spouse to. Nov 23, 2012 social security doesnt use the term free spousal benefits but the expression is a better description of what is happening in circumstances like the ones described above than restricted. Understanding free spousal benefits social security choices. In other words, theres no point in filing and suspending, because both benefits will stop. Paul solman has been economics correspondent for the pbs newshour since 1985.
When it comes to collecting social security benefits, there is no. The phrase free spousal refers to those circumstances in which a married person and some divorced persons can claim spousal benefits without also being forced by social security to claim their own retirement benefits. How to maximize social security with spousal benefits. Get whats yours the secrets to maxing out your social security benefits a ny times best seller with phil moeller and paul solman, the economic consequences of. Between our social security blog, our radio showpodcast, and conversations in the office we have discussed social security benefits for spouses an innumerable amount of times. Phil is the author of the book, get whats yours for medicare, and.
Nov 24, 2016 mike piper, cpa and james lange, cpa are two of the good guys in the financial world. After retirement, most americans claim social security. It covers just about any social security claiming scenario you might encounter, from child benefits to whether youre a divorcee, parent, retiree, spouse, or survivor. The spousal benefit can be as much as half of the workers primary insurance amount, depending on the spouses age at retirement. A new book explains that how and when you tap into social security benefits can dramatically alter how much money you get. If you will receive a pension for work not covered by social security such as government employment, the amount of your social security benefits on your spouses record may be reduced. One of the bestselling books right now is about mindnumbing government. Chapter 3 is 6 kindle pages and explains the spousal retirement benefits and chapter 4 is six more pages and explains widowwidower benefits. Spousal support and social security hofheimer family law. Social security spouse and survivor benefits for the modern.
Spousal support and social security hofheimer family law firm. Feb 21, 2020 be aware of an important change in social security law that affects how you can collect spousal benefits. Getting the most out of social security newretirement. Just like with social security retirement benefits, spousal benefits can be reduced if the recipient chooses to claim them before reaching full.
Social security spousal benefits are a way for you to get benefits based on your spouses earnings if he or she has higher lifetime earnings than you do. 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. In fact, the value of the benefits you may receive, added to their benefits, may help your spouse decide if taking benefits sooner may be more advantageous. But the longer you wait, the more you and your spouse or ex will be paid.
What you need to know about social securitys exspousal benefits. If the spouse begins receiving benefits before normal or full retirement age, the spouse will receive a reduced benefit. For example, jane and john, both age 64, have been receiving social security benefits for a couple of years. If the new social security benefit rules are here for good, and they. Because both spouses can claim benefits at different times and because the lower earning spouse may receive spousal benefits based on the higher earners work record, there are dozens of ways for married couples to claim social security. Social security ended file and suspend by ruling that if workers at full retirement age suspend their benefits to earn higher benefits in the future, other related benefits such as spousal benefits will also be suspended. Separate chapters explain how benefits work for spouses which alone is worth the price of admission, widows and widowers, divorced. Google his name and social security and youll find his articles on npr, forbes and other news sources. However, there is an offshoot of spousal benefits that we have not covered in much detail. They can boost the payout when they collect a spousal. This could happen, for example, if youre eligible for widows or widowers benefits from a deceased former spouse s earnings record, you remarry after age 60, and your new spouse files for social security retirement benefits. 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.
Todays boomers can begin collecting full benefits at 66, tap in early for a modified benefit at 62 or delay receiving benefits until 70. In fact, she literally wrote the book maximizing your clients social security retirement benefits, that retirement planning experts use to advise clients on social security. This is a musthave for every financial planners library. I called the local social security office and they said no that it automatically converted to my regular benefit. For those unfamiliar with the social security earnings test, the general idea is that if you claim social security benefits prior to full retirement age and you work while youre entitled to those benefits, the earnings test can result in all or part of your benefits. Married individuals are eligible to claim social security payments worth up to 50% of their spouses benefit if that amount is higher than their.
Four basic categories of social security benefits are paid based upon the record of your earnings. I was surprised to learn that he did not know about social security spousal benefits. You can receive up to 50% of your spouse s social security benefit. Jul 16, 2016 divorce doesnt preclude social security spousal benefits if you are divorced or in the process of getting divorced, there are some important considerations concerning your social security benefits. Common in law marriage and social security benefits.
The couple divorced 5 years ago when jim and mary were both 57, and now as mary reaches age 62, she is wondering whetherwhat social security benefits she may be entitled to as a divorcee. My colleagues and i have developed pathbreaking and widely acclaimed software tools to dramatically improve personal financial planning. But even if theres no death, you can collect a social security spousal benefit equal to half of what your spouse gets, if. How to get whats yours from social security pbs newshour. Listen to find out why so many people make big mistakes with regards to social security and how to. Your 2019 social security spousal benefits guide the.
Even though a spouse is allowed to collect benefits at age 62, a spouse who collects spousal benefits before full retirement age will be hit with the early retirement. Also, an early claim of retirement or spousal benefits permanently reduces the other one. Being aware of some social security loopholes will help you choose between options that differ by as much as a quarter. Spousal benefits may also be subject to income taxes. Divorce doesnt preclude social security spousal benefits. Social security changes bring an end to file and suspend. How spouses can maximize their social security retirement. Online use our social security retirementmedicare benefit application to apply for retirement, spouses, divorced spouses or medicare benefits. That is, you are free to take a spousal benefit while letting your own retirement benefit continue to grow. Heres a book to help you maximize your social security benefits. They have sent two letters with conflicting info regarding my benefit, the second less than the first. Some claim it earlier and some claim it later, but, if they or their spouse have paid into social security, theyll have some form of retirement income available to them through the federal government. Claiming it right is less complicated than it used to be, but its still worth learning about.
To qualify for spousal benefits, you generally have to be married a year. Todays boomers can begin collecting full benefits at 66, tap in early. Social security changes bring an end to file and suspend 03022016 10. Benefits paid to you as a spouse will not decrease your spouse s retirement benefit. Ive coauthored three books with him and respect him immensely. However, if a spouse is caring for a qualifying child, the spousal benefit is not reduced.
Nov 19, 2019 under the social security survivor benefits program, a deceased workers family may be able to collect his or her payouts, but qualifying rules are complex. Navigating social security and medicare can be difficult. Furthermore, if one person earned lower wages than the other, or did not earn enough social security credits to be insured for retirement benefits, he or she may be eligible to receive benefits as a spouse. Our paper simulates several different ways of structuring social security spouse and survivor benefits. Like any social security benefit, an individual may file for spousal benefits as early as age 62 but will receive a permanently reduced benefit amount for life if they file early. I began drawing social security at age 62, and dont know if my ex spouse has begun drawing his social security or not.
How a spouse can get benefits when his or her spouse collects. Social security spouse and survivor benefits are somewhat controversial because they advantage singleearner families relative to dualearner families or single people who pay the same amount in taxes. Online use our social security retirement medicare benefit application to apply for retirement, spouses, divorced spouses or medicare benefits. The ultimate guide to social security spousal benefits in. These benefits all fall under the old age, survivors and disability insurance program oasdi, which is the official name of social security. Nov 28, 2011 image via wikipedia one of the most confusing concepts in the social security retirement system is the spousal benefit. If you qualify, your application will automatically serve as a request for spousal benefits. Likewise, if you receive social security benefits as a spouse, the longer you wait, the bigger the benefit, provided your wageearner husband or wife waited until full retirement age to start. This book enables financial advisors to help clients make this important decision. This means that your own benefit is the only retirement benefit that you will receive at this point. When i called social security to ask about the amount of my exspousal benefit, i was told it. Spousal support and social security after retirement, most americans claim social security. Jul 18, 2016 some years ago i was talking to a colleague at the university of delaware who was planning to retire.
Two books provide help with social security benefits strategies. How a book led to the end of some social security claiming. Your 2018 guide to social security spousal benefits the. But because you were required to pay into social security, now you have to figure out how best to get back some of your money. Lowerearning spouses who claim their own social security benefit before full retirement age take a cut of as much as 25%. Reichenstein and meyer provide the reader with a comprehensive and logical method to address the complex decision of when to begin social security retirement benefits. Social security is phasing in the fra increase differently for different types of benefits. The two best books on social security white coat investor. Benefits for spouses social security administration. Your spousal or survivor benefits may be reduced, however, if you are under full retirement age and continue to work. May 24, 2016 for instance, back in 2011, the social security administration eliminated the ability for those who had claimed social security benefits more than 12 months in the past to withdraw their previous. 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. Social security filing strategies for married couples.
How it works as a spouse, you may be able to claim social security benefits based on your own work record, or you can collect a spousal benefit that may provide you up to 50 percent of the amount of your spouses social security benefit. You can file for spousal benefits the same way you would earned benefits. Social security spousal benefits may be available, under certain circumstances to spouses, ex spouses and widows and widowers. Get whats yours the secrets to maxing out your social security by. The spousal benefit could earn you a bunch of extra money. Jul 17, 2014 in social security for decision makers charting your course to retirement, peter murphy provides his readers with the necessary information to make optimal social security benefit decisions. The lowerearning spouse may also be entitled to social security benefits based upon the other spouse s work record a spousal benefit. Does the ss earnings test apply to spousal benefits. That brings you on to part 2, rules for less common situations. Apr 15, 2018 early or late retirement and spousal benefits. Social security retirement benefits and related planning topics explained in 100 pages or less. Social security benefits for widows and widowers dummies.
The spousal benefit dates back to the early days of the social security. 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 spouses full retirement age benefit but theres a lot more to these benefits than those simple basics. Yes, divorced people can claim spousal benefits, as. For retirement and spousal benefits, full retirement age will reach 67 for people born in 1960 and after.
How to get the most out of your social security benefits. Social security earnings test with spousal benefits. For example, social security benefits based on your own work history differ from those based on your spouse sor former spouse s. You may qualify for benefits as a married spouse and as a widow or widower. From medicare to spousal benefits, an essential primer on government retirement aid adams 101 alfred mill. The secrets to maxing out your social security, is. For instance, the reduction in benefits will stick with you if you claim spousal benefits early and then switch to your own retirement benefits. Why it makes sense to defer social security benefits. When it comes to claiming social security benefits, there is no magic age. Sep 16, 2019 use a social security spousal benefits strategy. Apr 02, 20 deciding the right time to claim social security when it comes to collecting social security benefits, there is no magic age. The secrets to maxing out your social security kotlikoff, laurence j. How to get the most out of your social security benefits when should you start taking social security retirement benefits.
Social security makes this a little bit like alphabet soup, as youll soon see. As soon as you claim a social security benefit early, the other one is also reduced by the same percentage. From medicare to spousal benefits, an essential primer on government retirement aid adams 101 mill, alfred on. From medicare to spousal benefits, an essential primer on government retirement aid adams 101. Once approved, you would receive monthly payments by check or direct deposit. Had you simply saved and invested, you would probably be retiring as a multimillionaire. Jim and mary were married for 22 years while raising a family, and during most of that time mary was a stayathome mother. A couples guide to filing social security spousal benefits.
Being aware of the free spousal benefits from social security. If you have been divorced for at least two years, you can apply if the marriage lasted 10 or more years. Benefits for you as a spouse social security administration. Learn the secrets to maximizing your social security benefits and earn up to thousands of. I mean, people should get whatever they deserve in social security but, like. Social security spousal benefits are also available to divorced people if they arent remarried and their marriages lasted at least 10 years, but the rules are slightly different. Note that eligibility for the spousal disability benefit will end if he or she becomes eligible to receive significantly higher social security benefits on his or her own record. 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.
Obamas new budget plan proposes closing social security. You may start collecting social security retirement benefits as early as age 62. With this in mind, ive developed the following list of frequently asked questions, a faq for social security spousal benefits. Maximize my social security when should i take social. How should i proceed in order to apply for and receive ex spousal benefits. The first thing to know is how social security spousal benefits are calculated. An individual may also claim survivors benefits on a deceased spouse s earnings record. To qualify for survivor benefits, you typically must have been married for at least nine months.
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