Ask Larry: What Will Our Family Maximum For Social Security Benefit Be?

Today’s column addresses questions about the family maximum that can be collected on a single record, answering a question about working this year while applying for Social Security benefits and potential availability of divorced survivor’s benefits. 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.

What Will Our Family Maximum For Social Security Benefit Be?

Hi Larry, My husband is about a year from retiring. We have an adult disabled child that I’ve taken care of since birth and therefore haven’t worked.

My husband’s benefit at full retirement age is 1,991. I understand both my son and myself are eligible for benefits based on his record. Could you give me an estimate of what our family maximum benefit would be and the approximate amount my son and I would receive?

Due to a new diagnosis for myself and high medical bills we were not expecting, this has become very important. Thanks, Carrie

Hi Carrie, The computation of the family maximum benefit (FMB)

FMB
amount that can potentially be paid on your husband’s account depends in part on his year of birth, so I can’t give you an accurate amount. I would guestimate, though, that the FMB based on what you state is your husband’s full retirement age rate would amount to roughly $3,650.

That means you and your child might each potentially expect to qualify a benefit amount of around $830 (i.e. ($3,650 – $1,991) / 2) when your husband starts drawing his benefits.

You and your husband may want to consider using my company’s software — Maximize My Social Security or MaxiFi Planner — to obtain accurate amounts, and to fully analyze your options so that you can choose the best possible filing strategy to maximize benefits for your family. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry

How Do I Answer This Application Question?

Hi Larry, I am soon to turn 70 and am applying for Social Security benefits. The application asks if I have worked or will workK in 2021. Due to Covid, I have not worked in 2021.

I have not been fired, as I am a part time hourly employee and can return when the office reopens. As of now, that is not expected to happen before 2022 but that could change. I currently collect unemployment insurance.

With this uncertainty, how do I answer the application question? Thanks, Helen

Hi Helen, Since you’re already over full retirement age (FRA), the application question you’re referring to is irrelevant.

The only times that Social Security needs to know if a person is working and how much they’ll earn is if they are under FRA and subject to the Social Security earnings test. The question you’re referring to is only used for earnings test purposes, and the earnings test no longer applies to a person’s benefits once they reach FRA .

So if you haven’t worked in 2021 and don’t expect to until next year, I would answer that question ‘No.‘ As I say though, it really won’t matter how you answer the question. Best, Larry

Can I Collect A Benefit As A Divorced Survivor?

Hi Larry, I was married for 12 years and divorced. Then remarried and that marriage was for 13 years and ended in divorce when I was 58. My first ex passed while I was divorced from second marriage.

I remain unmarried. My deceased ex husband died at 71 and was receiving his retirement benefit. Since I am unmarried now and at the time of his death, can I collect Social Security as divorced survivor? Thanks, Vickie

Hi Vickie, You don’t mention your current age, so I can’t give you a definite answer. You must be either at least 60, or at least 50 and disabled, to potentially qualify for surviving divorced spousal benefits. Whether you were married at the time of his passing is irrelevant.

You may also qualify for divorced spousal benefits based on your second ex’s record as well as divorced widow’s benefit at some point. Depending on when you were born, you may able to delay filing for your retirement benefit until 70 and earn delayed retirement credits.

It sounds like you have a lot of potential options for claiming Social Security benefits at least in the near future. Best, Larry