Today’s Social Security column addresses questions about retirement benefit rates and whether they can be increased, what people could be referring to by the term “spousal bump” and when Social Security might review disability status. 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 I Receive My Current Benefit Amount For The Rest Of My Life?
Hi Larry, When I was 62 I applied for Social Security retirement benefits and told them I wanted to continue to work also. So now at the age of 70, contacted Social Security and said I would like to retire and get full benefits.
They told me that when I applied at 62, it was locked in so for the rest of my life, my benefit will stay the same. Is this right? Thanks, Fred
Hi Fred, Probably yes, except for cost of living (COLA) increases, you’re probably stuck with your current benefit rate unless you can qualify for higher benefits on someone else’s account.
When you become eligible for Social Security retirement benefits, you can choose to start drawing your benefits any time between 62 and 70. The earlier you start drawing within that span of time, the lower your benefit rate is.
If you start drawing Social Security retirement benefits any time between age 62 and your full retirement age (FRA), the reduction for age applied to your benefit rate is permanent unless some of your benefits are withheld due to Social Security’s earnings test. You said that you continued working, but I don’t know if your earnings were high enough for any of your benefits to have been withheld due to the earnings test.
In any case though, if any of your benefits were withheld then any benefit adjustment for which you’d be eligible should have occurred automatically sometime after you reached FRA.
The only other way that your Social Security retirement benefit rate could increase is if your recent or future earnings are high enough to increase your benefit rate. Social Security retirement benefits are based on an average of a person’s highest 35 years of Social Security covered wage-indexed earnings, so additional years of earnings only increase a person’s benefit rate if they’re higher than one or more of the 35 years currently being used to calculate the person’s benefit rate.
If you’re eligible for a benefit increase due to your earnings, Social Security should increase your rate automatically. Best, Larry
Is There Such A Thing As A “Spousal Bump”?
Hi Larry, I’m hearing people talk about a benefit called a “spousal bump.” Is there such a thing? I will turn 66 in a few months. My wife is on disability and won’t be 66 till June of 2022. So is the “spousal bump” for real and if so, how does it work? Thanks, Roger
Hi Roger, There’s no benefit specifically named a “spousal bump,” but I assume that what you’ve heard about are excess spousal benefits. If a person is receiving their Social Security retirement benefits and if they also apply for spousal benefits, any spousal benefit for which they qualify would only be a partial, or excess, benefit.
Note that excess spousal benefits can only be payable if one member of a couple has a PIA that’s more than twice as much as the other spouse’s PIA.
It sounds like you and your wife may want to consider using my company’s software — Maximize My Social Security or MaxiFi Planner — to fully analyze your options so you can make informed decisions about your best strategy for maximizing your benefits and avoid unknowingly leaving money on the table. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry
Is There Something I Should Do If A Review Of My Case Is Past Due?
Hi Larry, I’ve been on SSDI since my 50s and I’m now in my early 60s. My initial approval letter said my case would be reviewed in five to seven years. It’s now one month past seven years and I’ve never been contacted for a review.
Is there something I should do? Do they ever not do a review? Or could it be they made a mistake and I’ll find out in a few years when they try to take back things they’ve already paid me? Thanks, Mary
Hi Mary, You don’t need to do anything unless and until Social Security initiates a review. As long as Social Security has your correct mailing address, they should notify you if and when they initiate a medical review of your case.
The frequency of medical reviews depends on a disabled person’s impairment(s) and whether or not they could reasonably be expected to improve. Age is also a factor, as are internal Social Security budget considerations.
It’s quite possible, if not likely, that since you’re now in you 60s that Social Security won’t ever review your case. If so, your Social Security disability (SSDI) benefits will simply automatically convert to regular Social Security retirement benefits when you reach your full retirement age (FRA).
If Social Security does decide to review your case before you reach FRA though, even if they determine that your benefits should be terminated they’d be barred from terminating them retroactively. Best, Larry