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. Benefits paid to you as a spouse will not decrease your spouse s retirement benefit. 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. Married individuals are eligible to claim social security payments worth up to 50% of their spouses benefit if that amount is higher than their. Paul solman has been economics correspondent for the pbs newshour since 1985. Online use our social security retirement medicare benefit application to apply for retirement, spouses, divorced spouses or medicare benefits. 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.
Social security earnings test with spousal benefits. Feb 21, 2020 be aware of an important change in social security law that affects how you can collect spousal benefits. President barack obama speaks during a press conference at the oecd conference centre before leaving the conference on climate change cop21 on december 1, 2015 in paris, france. One of the bestselling books right now is about mindnumbing government. Benefits for spouses social security administration. Your 2018 guide to social security spousal benefits the. 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.
Google his name and social security and youll find his articles on npr, forbes and other news sources. After retirement, most americans claim social security. 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. To qualify for spousal benefits, you generally have to be married a year. This book enables financial advisors to help clients make this important decision. 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. Todays boomers can begin collecting full benefits at 66, tap in early for a modified benefit at 62 or delay receiving benefits until 70. 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. The lowerearning spouse may also be entitled to social security benefits based upon the other spouse s work record a spousal benefit. The first thing to know is how social security spousal benefits are calculated. I mean, people should get whatever they deserve in social security but, like. 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. 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.
They have sent two letters with conflicting info regarding my benefit, the second less than the first. 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. Getting the most out of social security newretirement. 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. When it comes to claiming social security benefits, there is no magic age. Social security spousal benefits may be available, under certain circumstances to spouses, ex spouses and widows and widowers. What you need to know about social securitys exspousal benefits. I had heard i could apply for a spousal benefit and wait until 70 to collect my own social security benefit. Once approved, you would receive monthly payments by check or direct deposit. The secrets to maxing out your social security, is. Jim and mary were married for 22 years while raising a family, and during most of that time mary was a stayathome mother. This option allows one spouse to file for benefits and the other spouse to. Spousal benefits may also be subject to income taxes.
As soon as you claim a social security benefit early, the other one is also reduced by the same percentage. Our paper simulates several different ways of structuring social security spouse and survivor benefits. How to maximize social security with spousal benefits. 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. 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. For example, social security benefits based on your own work history differ from those based on your spouse sor former spouse s.
Online use our social security retirementmedicare benefit application to apply for retirement, spouses, divorced spouses or medicare benefits. If the spouse begins receiving benefits before normal or full retirement age, the spouse will receive a reduced benefit. 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. Your 2019 social security spousal benefits guide the. That brings you on to part 2, rules for less common situations. Benefits for you as a spouse social security administration. Phil is the author of the book, get whats yours for medicare, and. Listen to find out why so many people make big mistakes with regards to social security and how to. Jul 18, 2016 some years ago i was talking to a colleague at the university of delaware who was planning to retire. Had you simply saved and invested, you would probably be retiring as a multimillionaire. 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.
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. 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. To qualify for survivor benefits, you typically must have been married for at least nine months. Divorce doesnt preclude social security spousal benefits. Social security benefits can be confusing, but you dont have to be married for many years to receive benefits. From medicare to spousal benefits, an essential primer on government retirement aid adams 101 mill, alfred on. 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.
Learn the secrets to maximizing your social security benefits and earn up to thousands of. How to get whats yours from social security pbs newshour. Social security spousal benefit financial ducks in a row. Separate chapters explain how benefits work for spouses which alone is worth the price of admission, widows and widowers, divorced.
If you have been divorced for at least two years, you can apply if the marriage lasted 10 or more years. 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. 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. Social security changes bring an end to file and suspend. 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. Maximize my social security when should i take social. 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.
From medicare to spousal benefits, an essential primer on government retirement aid adams 101. 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. Sep 25, 20 by a qualifying child, we mean a child who is under age 16 or who receives social security disability benefits. However, if a spouse is caring for a qualifying child, the spousal benefit is not reduced. That is, you are free to take a spousal benefit while letting your own retirement benefit continue to grow. And we get hundreds and hundreds of these books every week. Common in law marriage and social security benefits. These benefits all fall under the old age, survivors and disability insurance program oasdi, which is the official name of social security. Social security filing strategies for married couples. For instance, the reduction in benefits will stick with you if you claim spousal benefits early and then switch to your own retirement benefits. Social security is one of the biggest pieces of the retirement puzzle, making up 40% of the average retirees income. In other words, theres no point in filing and suspending, because both benefits will stop. I called the local social security office and they said no that it automatically converted to my regular benefit.
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. The ultimate guide to social security spousal benefits in. For example, jane and john, both age 64, have been receiving social security benefits for a couple of years. Two books provide help with social security benefits strategies. 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. Understanding free spousal benefits social security choices. 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. 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. Being aware of the free spousal benefits from social security.
Social security retirement benefits and related planning topics explained in 100 pages or less. If the new social security benefit rules are here for good, and they. A couples guide to filing social security spousal benefits. Lowerearning spouses who claim their own social security benefit before full retirement age take a cut of as much as 25%. Spousal support and social security after retirement, most americans claim social security. 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. Spousal support and social security hofheimer family law firm. How a spouse can get benefits when his or her spouse collects. Social security is phasing in the fra increase differently for different types of benefits. How to get the most out of your social security benefits when should you start taking social security retirement benefits. 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. You may qualify for benefits as a married spouse and as a widow or widower. But the longer you wait, the more you and your spouse or ex will be paid.
When i called social security to ask about the amount of my exspousal benefit, i was told it. I was surprised to learn that he did not know about social security spousal benefits. This is a musthave for every financial planners library. I began drawing social security at age 62, and dont know if my ex spouse has begun drawing his social security or not. Social security benefits for widows and widowers dummies. Social security spouse and survivor benefits for the modern. Nov 24, 2016 mike piper, cpa and james lange, cpa are two of the good guys in the financial world. Ive coauthored three books with him and respect him immensely.
You can file for spousal benefits the same way you would earned benefits. Get whats yours the secrets to maxing out your social security by. You can receive up to 50% of your spouse s social security benefit. The spousal benefit could earn you a bunch of extra money. An individual may also claim survivors benefits on a deceased spouse s earnings record.
The two best books on social security white coat investor. Just like with social security retirement benefits, spousal benefits can be reduced if the recipient chooses to claim them before reaching full. But even if theres no death, you can collect a social security spousal benefit equal to half of what your spouse gets, if. Nov 28, 2011 image via wikipedia one of the most confusing concepts in the social security retirement system is the spousal benefit. Obamas new budget plan proposes closing social security. They can boost the payout when they collect a spousal. With this in mind, ive developed the following list of frequently asked questions, a faq for social security spousal benefits. The spousal benefit dates back to the early days of the social security. From medicare to spousal benefits, an essential primer on government retirement aid adams 101 alfred mill. The secrets to maxing out your social security by laurence j. Theyve dedicated themselves to writing the best books out there on social security.
Chapter 3 is 6 kindle pages and explains the spousal retirement benefits and chapter 4 is six more pages and explains widowwidower 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. Apr 02, 20 deciding the right time to claim social security when it comes to collecting social security benefits, there is no magic age. Four basic categories of social security benefits are paid based upon the record of your earnings. However, there is an offshoot of spousal benefits that we have not covered in much detail.
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. My colleagues and i have developed pathbreaking and widely acclaimed software tools to dramatically improve personal financial planning. Being aware of some social security loopholes will help you choose between options that differ by as much as a quarter. How spouses can maximize their social security retirement. The secrets to maxing out your social security kotlikoff, laurence j. Your spousal or survivor benefits may be reduced, however, if you are under full retirement age and continue to work.
How a book led to the end of some social security claiming. You can apply for benefits if you have been married for at least one year. Social security changes bring an end to file and suspend 03022016 10. Social security makes this a little bit like alphabet soup, as youll soon see. You may start collecting social security retirement benefits as early as age 62. Heres a book to help you maximize your social security benefits. When it comes to collecting social security benefits, there is no. Jul 01, 2016 the first thing to know is how social security spousal benefits are calculated. If you qualify, your application will automatically serve as a request for spousal benefits. How to get the most out of your social security benefits. 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. Todays boomers can begin collecting full benefits at 66, tap in early.
Does the ss earnings test apply to spousal benefits. The spousal benefit can be as much as half of the workers primary insurance amount, depending on the spouses age at retirement. 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. A new book explains that how and when you tap into social security benefits can dramatically alter how much money you get. Deciding which social security benefits to take and when to take them is one of the most important and complex decisions you must make. Apr 15, 2018 early or late retirement and spousal benefits. The following is a guest post from marotta wealth management. 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. Claiming it right is less complicated than it used to be, but its still worth learning about. How should i proceed in order to apply for and receive ex spousal benefits. 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. Yes, divorced people can claim spousal benefits, as. Also, an early claim of retirement or spousal benefits permanently reduces the other one.
How taking social security early affects your exspousal. 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. This means that your own benefit is the only retirement benefit that you will receive at this point. 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. There are dozens of different social security strategies available for people looking to maximize their gain from their social security benefits, but one in particular, available to married couples, is to have one partner receive spousal benefits while deferring their own benefits until the maximum age of 70 by doing so, you can collect a lower benefit at an early age and then collect a much. Why it makes sense to defer social security benefits. Maximize my social security was developed by boston economics professor larry kotlikoff. For retirement and spousal benefits, full retirement age will reach 67 for people born in 1960 and after. Spousal support and social security hofheimer family law. Sep 16, 2019 use a social security spousal benefits strategy. Social security rules and strategies for divorcee benefits.