Your 2019 social security spousal benefits guide the. A social security spousal benefit is calculated as 50% of the other spouses pia. Recent changes to social security have stirred up a lot of debate, with critics bemoaning the loss of the fileandsuspend strategy and the ability to file as a spouse first. An individual seeking spousal benefits may qualify if married to the worker for less than one year if he or she would qualify for a social security auxiliary benefit, such as an exspouse, widow, or surviving parent benefit, in the month prior to the month of marriage. The motley fools 2020 guide to social security benefits. Very good book on explaining the fundamentals of social security and medicare. By rachel hartman, contributor march 11, 2020 by rachel hartman, contributor march 11, 2020, at 10. 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. Maximize the social security spousal benefit kiplinger. Understand how social security spousal benefits work to make the most of your retirement funds. How retirement benefits, spousal benefits, and widower benefits are calculated, how to decide the best age to claim your benefit, how social security benefits are taxed and how that affects tax planning, click here to see the. Social security spousal benefits often represent a large part of the total benefits available to a couple.
You cant qualify to receive spousal benefits unless your wife is drawing her social security retirement benefits. Note that the age at which the other spouse files for social security benefits doesnt affect this calculation. Social security is phasing in the fra increase differently for different types of benefits. To get all the social security you deserve, read a book that. From medicare to spousal benefits, an essential primer on government retirement aid adams 101 mill, alfred on. Spousal benefits cant be claimed unless the target spouse the one whose earnings will be the basis for the benefit has already filed to claim his or her social security retirement benefit. Take the guesswork out of your social security filing decision. Social security spousal benefits are partial retirement or disability benefits granted to the spouses of qualifying taxpayers. It increases by two months for every year from 1955 to 1959.
Rules that clear up confusion over spousal benefits. You cant receive both at the same time, only the larger of the 2. Social security spousal benefits are confusing, and among the most common thing readers ask about. This booklet gives you an overview of social security survivors benefits paid to the spouses and children of. If spouses get social security retirement benefits before. How are social security spousal benefits calculated. Social security spousal benefits pay a beneficiarys spouse in retirement. This particular benefit doesnt just provide retirement income, either. Social security spousal benefits are some of the most generous benefits youll receive in retirement.
May 24, 2016 recent changes to social security have stirred up a lot of debate, with critics bemoaning the loss of the fileandsuspend strategy and the ability to file as a spouse first. Online, if you are within 3 months of age 62 or older, or. Benefits for you as a spouse social security administration. Dont file for spousal benefits before reaching full retirement age or social security will think you are filing for your own retirement benefits. One program that you should be aware of is known as. Social security earnings test with spousal benefits. Todays column addresses questions about taking spousal benefits after retirement benefits, whether early.
This book contains minimal math, excepting the simple formula presented in this endnote. Social security benefits for widows and widowers dummies. Social security spousal benefits can provide couples with extra income. As with benefits for retired workers, social security spousal benefits will be permanently reduced if claimed before the recipient reaches full retirement age regardless of the age of the worker.
How do childincare spousal social security benefits work. By kotlikoffs reckoning, the social security administration has 2,728 rules and the formula for determining the benefits of a married spouse. The most frequent cause for confusion comes from one small difference between benefits for a spouse versus an exspouse. By calling our national tollfree service at 180077212 tty 18003250778 or visiting your local social security office. Even if you have never worked under social security, you may be able to get spouses retirement benefits if you are at least 62 years of age and your spouse is receiving retirement or disability benefits.
You could potentially file a restricted application for just spousal benefits effective with as early as the month you reach full retirement age fra, but only if your wife claims her benefits by then. Mar 29, 2016 14 rules for how social security benefits are calculated covers the basics, such as the distinctions between retirement, spousal and survivorship benefits. Social security benefits are now based on an average of a workers 35 highest paid salaries with zeros averaged in if there are fewer than 35 years of covered wages. Divorced spouses may qualify for widows or widowers benefits if the marriage lasted ten. Spousal benefits may be retroactive, but only under certain limited circumstances. They can boost the payout when they collect a spousal. If his wife waited until fra to file for a spousal benefit, she would collect 50 percent of his fra benefit. How to maximize social security with spousal benefits. They can get benefits if the worker has credit for one and onehalf years of work 6 credits in the three years just before their death.
I have spent quite a bit of time studying how the system works in order to help my clients. Feb 06, 2020 social security spousal benefits are confusing, and among the most common thing readers ask about. If you understand these rules it could make a big difference in the amount of benefits you. These are a special kind of spousal benefits that can increase the retirement benefits of married couples or divorcees where both the husband and wife have substantial social security earnings. This benefit is even more important for many divorced spouses, as it might represent the only benefits available to many divorcees. Lowerearning spouses who claim their own social security benefit before full retirement age take a cut of as much as 25%. The calculation for spousal benefits is based on the retirement age.
The benefit is similar, in fact, to the spousal benefit that is available to a person who is still married. Most people are eligible to start collecting social security benefits at age 62. The spousal benefit and many other confusing provisions of the social security system are explained in the book. How retirement benefits, spousal benefits, and widower benefits are calculated, how to decide the best age to claim your benefit, how social security benefits are taxed and how that affects tax planning, click here to see the full list. 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.
This part of the reduction formula is the same as for regular social security benefits, and as with regular benefits, the earliest a spousal benefit can be claimed is age 62. If his wife waited until fra to file for a spousal benefit, she would collect 50. Social security benefits are more than just income for retired workers. From medicare to spousal benefits, an essential primer on government. Get kiplingers trusted advice on social security, benefits, claiming strategies, spousal benefits, survivor benefits, file and suspend strategy, restrict an application strategy, earnings test. Social security filing strategies for married couples. Social security operates with a philosophy that a divorced person may deserve a personal benefit, having been the longterm partner and helpmate of a member of the workforce.
Taking a spousal benefit does not reduce or change the amount your current spouse, exspouse, or exspouses current spouse may receive. The spousal benefit option for social security benefits. Benefits also are provided for disabled widows or widowers who have reached 50. Apr 22, 2020 a social security spousal benefit is calculated as 50% of the other spouses pia. Say youre getting your own retirement benefit at 62, based on your own. This benefit is applicable when one spouse has had little or no working history, such as a stay at home mom or dad, and where the other spouse has had a working career covered by social security, that has provided enough quarters of earnings to make him or her eligible for social. 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. Spousal benefits also apply to any couple married for at least 10 years, including divorcees. As a result of my study of the system, ive also written a book that you may find useful a social security owners manual. If your own retirement benefit is lower than your spousal benefit, social security will pay you the higher amount. Your spousal or survivor benefits may be reduced, however, if you are under full retirement age and continue to work. Who qualifies for social security spousal benefits. Dont lose out on valuable benefits by collecting social security too early.
Can i continue to take only my benefits after my husband has filed for his own benefits or will social security automatically add in my reduced excess spousal benefits. Additional confusion comes from trying to decipher what happens with spousal benefits if you claim before versus after full. Please pause to think about this for a second, because it has implications for spousal filing. Jane files for her retirement benefit at age 63 and is therefore receiving a retirement benefit that is smaller than her pia. Form ssa2 information you need to apply for spouses or divorced spouses benefits. Social security strategies with a government pension. Benefits can be paid to the workers children and the surviving spouse who is caring for the children even if the worker doesnt have the required number of credits. Your 2019 guide to social security benefits the motley fool. If social security benefits were reduced by 3% to 5% for new retirees, about 18% to 30% percent of the funding gap would be eliminated.
There is a provision in the social security system that many couples take advantage of the spousal benefit. Nov 24, 2019 social security spousal benefits are partial retirement or disability benefits granted to the spouses of qualifying taxpayers. But even if theres no death, you can collect a social security spousal benefit equal to half of what your. If you retire at age 62, the earliest possible social. The 6670 social security strategy for married couples. 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. This allows social security to determine if you are entitled to any spousal or survivor benefits. How much you get you can claim a social security benefit based on your own earnings record, or you can collect a spousal benefit that will provide you 50 percent of the amount of your spouse s social security benefit as calculated at their full retirement age, or fra. Spousal benefits can be combined with a retired workers benefit to increase household social security income, but a widow or widower cant collect both benefits after the worker spouse passes away.
They have no benefit of their own, but thanks to the social security spousal benefit available under their spouses work record, they can still receive payments. For many retirees, social security is their biggest source of guaranteed income. Dec 16, 2018 this part of the reduction formula is the same as for regular social security benefits, and as with regular benefits, the earliest a spousal benefit can be claimed is age 62. Mar 04, 2015 spousal benefits also apply to any couple married for at least 10 years, including divorcees. An appointment is not required, but if you call ahead and schedule one, it may reduce the time you spend waiting to apply. Collecting social security benefits as a spouse aarp. Being aware of the free spousal benefits from social security. For retirement and spousal benefits, full retirement age will reach 67. When can i file a restricted application for spousal benefits. Form ssa2 information you need to apply for spouses or. How are spousal benefits calculated for social security.
The only error i found was on page 86 in talking about spousal benefit. The social security spousal benefit fully explained figuide. A retroactive benefit is a lumpsum payment of up to 6months worth of social security benefits paid for late claimants. Mar 26, 2020 your spousal or survivor benefits may be reduced, however, if you are under full retirement age and continue to work. Maximizing social security benefits special report.
461 984 792 1272 280 1018 185 94 1626 414 21 1090 1235 1624 555 1008 1681 158 1321 327 117 1642 548 945 504 744 329 379 1160 688 680 1005 1409 489 459