Economic Security Planning, Inc.
Today’s column addresses questions about the earnings test and a spouse’s retirement benefit, spousal and retirement benefits, survivor benefit rates, maximizing spousal benefits and eligibility for divorced spousal benefits. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc, which markets Maximize My Social Security and MaxiFi Planner.
See more Ask Larry answers here.
Have Social Security questions of your own you’d like answered? Ask Larry about Social Security here.
Can My Wife Get Her Own Social Security Retirement Benefits Even If I’m Still Working?
Hi Larry, I am 63 and plan on working until 70. My wife just turned 67 and is entitled to her full retirement age benefits. Can she begin receiving them if I am still working, have not filed, and will not do so until 2027? I understand that she cannot receive spousal benefits until I retire, right? Thanks, Allen
Hi Allen, Yes, your wife is free to apply for her own Social Security retirement benefits whenever she so chooses. Your age and how much you’re earning would have no effect on your wife’s ability to collect her own Social Security retirement benefits. But as you mentioned, she couldn’t be paid any spousal benefits at least until you start drawing your benefits.
If your primary insurance amount (PIA) is significantly more than twice as much as your wife’s PIA, she would almost certainly want to claim her own retirement benefits as soon as possible. A person’s PIA is equal to the amount of their Social Security retirement benefit if they start drawing at full retirement age (FRA). You and your wife may want to — Maximize My Social Security or MaxiFi Planner — to compare all of the various filing options available to you in order to determine the best possible strategy for maximizing your benefits. Social Security planning. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry
Is It True That I Can Only Claim Either My Own Benefits Or Spousal Benefits?
HI Larry, I went to the Social Security office to claim my retirement benefits and also my spousal benefits in addition. I think I should get both but they Social Security employees told me it would only be one or the other. Why can’t I get both? And what about retroactive benefits? Thanks, Louanne
Hi Louanne, You don’t mention your age, so I don’t know if it’s even possible for you to file for just one type of benefit. If you were born after 1/1/1954, whenever you file for either your own Social Security retirement benefits or for spousal benefits, you’ll be deemed to be filing for both benefits. Furthermore, if your husband isn’t drawing his benefits then you couldn’t qualify for spousal benefits at least until he files for his benefits.
Also, you can’t be paid retroactive benefits for months prior to your month of filing if you apply prior to full retirement age (FRA). So I don’t have enough information to know what if any retroactive benefits you might be able to claim. Best, Larry
Should I Question My Survivor Benefit Rate?
Hi Larry, I applied for divorced widows benefits at 60. My ex of 18 years died five years ago at 58 and he never collected Social Security regiment benefits. I was told I would receive $1,530 a month. However, I received 5 months back payment for $6,826. That comes out to $1,374 a month. Why would I receive the reduced rate that’s $156. less than I was told. I just received a letter from SSA stating my benefits will be $1,374. Should I question this, or pursue it with them, or just take the reduced payment? Thank, Christine
Hi Christine, I have no way of knowing if the amount of your benefit is correct. It’s more likely that the amount you were initially quoted by the Social Security representative was incorrect and the amount on your award letter is correct than the other way around. However, it’s certainly not out of the realm of possibility that you’re being paid the wrong amount.
If your first month of entitlement to survivor benefits is the month that you reached age 60, then your correct benefit rate would be 71.5% of your ex-spouse’s Primary Insurance Amount (PIA), which is equal to their full retirement age (FRA) retirement benefit amount. You could file an appeal request questioning your rate, but you may first want to contact Social Security to ask them to tell you the amount of your ex-spouse’s PIA. You could then do the math to see if what you’re being paid is 71.5% of his PIA. Best, Larry
How Can My Wife Maximize Her Amount?
Hi Larry, I’m 66, my FRA, and will continue to work a year or so. My wife is 63 and she wants to retire and collect Social Security regiment benefits. I’m thinking to collect and still work. How can she maximize her amount? Should collect first or should I? Thanks, Tomas
Hi Tomas, Your and your wife’s best filing strategy depends on a number of different factors, such as your birthdates and your relative benefit rates. For example, if you were born prior to 1/2/1954, you may be able to collect benefits as a spouse while allowing your own benefit rate to grow until 70. But you couldn’t collect spousal benefits at least until your wife claims her benefits. That’s just one of many possible filing strategies though, and I can’t give you much advice based on the limited information in your question. Best, Larry
Why Was I Not Allowed To Take My Social Security Divorced Spousal Benefit?
Hi Larry, I went into the Social Security office in April 2015 at age 63. I specifically asked the representative if I could collect my Social Security divorced spousal benefit since we had been married over 10 years. She told me that because he was on Social Security disability, I did not qualify. I ended up having to take an early retirement because of health issues and three years later was taking Social Security disability for myself. Why was I not allowed to take my divorced spousal benefit since he had been injured during our marriage and cost me a lot of money to get him on disability due to his injuries? Thanks, Kimberly
Hi Kimberly, There isn’t enough information in your question for me to be able to give you a complete answer. What I can tell you though, is that if you had applied for divorced spousal benefits at 63 and if your ex was still living at that time, you would also have been required to apply for your own Social Security retirement benefits. And because of that you would only have qualified for divorced spousal benefits if your divorced spousal rate was higher than your own benefit rate. Unreduced divorced spousal benefits are calculated based on 50% of the worker’s Primary Insurance Amount (PIA), which is equal to their full retirement age (FRA) retirement benefit amount, but can be lower than that if the worker is drawing Social Security disability (SSDI) benefits rather than Social Security retirement benefits. And if you had applied for divorced spousal benefits prior to your full retirement age (FRA) your benefit rate would also be reduced for age.
If you haven’t already applied for divorced spousal benefits, you could still apply for them, but assuming that your ex is still living, you could only qualify for divorced spousal benefits if 50% of your ex’s PIA is more than your own PIA. That would also have been the case if you’d filed at age 63, except that your benefits would then have been reduced for age. Best, Larry