Today’s Social Security column addresses questions about whether spousal benefits can affect later retirement benefits, filing for both retirement and survivor’s benefits and whether Social Security is moving payment days. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc.
See more Ask Larry answers here.
Have Social Security questions of your own you’d like answered? Ask Larry about Social Security here.
Will Taking Spousal Benefits Affect My Social Security Benefit Rate?
Hi Larry, I have applied for my Social Security retirement benefits to begin later this year when I turn 70. When I reached my FRA in 2016, I applied for my spousal benefits. Will that impact my PIA? I received the Social Security Notice of Award and it did not include any COLAs after my spousal benefits began.
I have manually determined my PIA as of my FRA and it’s the same as what they told me it was back in 2018. I have called them and they said COLAs are only for people receiving the benefits. This doesn’t seem right — is it? Thanks, Sarah
Hi Sarah, Collecting spousal benefits has zero effect on your own primary insurance amount (PIA). PIAs are automatically updated to include any cost of living (COLA) increases that occur after a person reaches 62, so it’s hard for me to believe that your retirement benefit rate doesn’t include the recent COLAs.
And by the way, such COLAs are credited even if the person isn’t yet drawing their benefits. So what the Social Security employee you spoke with told you is incorrect. In any event though, if you believe that your benefit rate is incorrect, you can file an appeal. Best, Larry
Can I Continue To Draw My Own Benefits And Then Claim 100% Of My Widow’s Benefit When I Reach FRA?
Hi Larry, My husband passed away recently. He waited until he was 70 to claim his retirement benefit. He was 10 years older than I am, so I claimed my much smaller benefit when I turned 62. I have another two plus years before I am FRA. When I called SSA to discuss my survivor’s benefit choices, I asked if I had the option of waiting until I was FRA, continuing to receive my benefit until I could claim 100% of my widow’s benefit. The SSA person who was assisting me seemed not to understand my question. She told me I would probably be receiving “90 something percent” of his benefit, so what was the issue? What is the policy? Do I have this option?? I still have not received my letter telling me my new benefit. Thanks, Trisha
Hi Trisha, I’m sorry for your loss. Yes, you can continue to draw just your own retirement benefit until full retirement age (FRA) and then claim unreduced widow’s benefits. You’ll then be paid your widow’s benefit, equal to husband’s full benefit rate including the delayed retirement credits (DRC) he earned by waiting until 70 to claim his benefits. You won’t get both your own amount and your husband’s full amount, though just the higher of the two amounts.
By the way, if you were born in 1957 then your FRA for widow’s benefits is the month you turn age 66 and two months. The FRA for widow’s benefits for people born in 1957 is four months earlier than their FRA for retirement benefits. Best, Larry
Is Social Security Moving Everyone’s Payment Dates?
Hi Larry, Is social security moving everyone dates to receive it or are they leaving it the same? I cant afford to change my date from the 3rd which I have been getting it to another date which is down the line. I usaally pay all my bills on the 3rd of the month otherwise ill have to change everything around. Please let me know if this is true or not. Thanks, Justin
Hi Justin, Not to my knowledge. What I can tell you is that the rules regarding when a person should be paid their monthly benefits haven’t changed since 1997. Based on those rules, most people are now paid either on the second Wednesday of the month, or the third or fourth Wednesday depending on their day of birth.
The only people who should still be receiving their benefit payments on the third day of the month are people who were already receiving benefits prior to May 1997, or beneficiaries who are living outside of the country, or people who are eligible for Supplemental Security Income (SSI).
So if you meet one of the above exceptions that allows you to be paid on the third of the month, then I don’t know of any reason your payment date would change. Otherwise, if you’ve been getting paid on the wrong day, then I suppose it’s possible that Social Security may now be correcting their error. Best, Larry