Economic Security Planning, Inc.
Today’s column addresses questions about filing for spousal benefits only while delaying retirement benefits, survivor benefits from a public pension, declining divorced widow’s benefits, self-employment and Social Security earnings records and collecting when eligible for more than one benefit. 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 I Take Social Security Spousal Benefits At FRA And Retirement Benefits At 70?
Hi Larry, If I retired at my FRA of 67 and six months and received spousal benefits under husband’s Social Security work record and delayed my Social Security retirement benefits account until I turn 70, can I then switch to my higher retirement benefit? Also, I was told by a friend that I should wait until 70 and a half to file but I see you mention waiting until only 70 — which is better? Thanks, Paula
Hi Paula, The only way that a person can draw just spousal benefits only on a spouse’s record is if they a) were born prior to 1/2/1954, b) they haven’t yet filed for their own Social Security retirement benefits, and c) they file for spousal benefits at full retirement age (FRA) or later. However, if your husband is deceased then even if you were born after 1/1/1954, you could potentially start drawing widow’s benefits as early as 60 and wait up until 70 to file for your own retirement benefits.
Regardless of when you were born, if your own Social Security retirement benefit rate is higher than your spousal or survivor rate, you would never want to wait past the month you turn age 70 to claim your own benefits. Delayed retirement credits (DRC) can only be accrued up until the month that a person reaches 70.
You may want to use one of my company’s software applications — Maximize My Social Security or MaxiFi Planner — to fully explore and compare all of your potential filing options so that you can choose the best way to maximize your benefits. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry
Will My Wife Be Able To Draw Both Her Social Security And A CSRS Survivor Annuity?
Hi Larry, I’m a federal retiree under CSRS with a survivor’s benefit for my wife. My wife started drawing her Social Security retirement benefit at 64 or 65. Will she be able to both her Social Security retirement benefit and the CSRS survivor’s benefits after my death? Thanks, Phil
Hi Phil, Yes. Drawing a CSRS survivor pension would have no adverse affect on your wife’s Social Security retirement benefits. Best, Larry
Can An Ex-Spouse Decline Social Security Benefits?
Hi Larry, Can an ex-spouse’s Social Security benefits be declined or waived? My father passed away last year and this resulted in an increase to my mother’s monthly Social Security benefits. Most would view this as a good thing however my mother lives on a limited income and qualified for Medicaid coverage. The increase was enough to bump her from qualifying for continued Medicaid benefits And her spending habits do not allow for a month to month spend down. Can the Social Security benefit amount my mother receives from her ex-husband (my father) be declined because it compromises her benefits? Thanks, Tom
Hi Tom, I’m sorry for your loss. People aren’t required to apply for Social Security benefits, and they can’t be paid benefits without an application. However, if someone has already applied for and is drawing spousal or divorced benefits and the worker dies, the spousal/divorced spousal benefits are automatically converted to survivor benefits. No application is required for that conversion, and it can’t be declined. In theory at least, the survivor could opt out of receiving benefits, but in order to do so they would have to withdraw the spousal application that they filed and repay all of the benefits they were subsequently paid.
Furthermore, if a person is receiving a needs based benefit such as Medicaid, those programs generally require as a condition of eligibility that the person apply for any Social Security benefits for which they qualify. Best, Larry
How Can My Self-Employed Friend Get Social Security?
Hi Larry, A have a friend who is self employed and her earning are only cash how can she get social security. She files joint return with her husband. Thanks, Ellie
Hi Ellie, Self-employment earnings are required to be reported on Schedule SE of a person’s income tax returns. The self-employed individual must pay the appropriate self-employment (i.e. Social Security) taxes, and those earnings are then credited to their Social Security earnings history the same as are wages from an employer. If a person fails to properly report their self-employment income or fails to pay their self-employment taxes, then they receive no credit from Social Security for those earnings.
However, even if your friend doesn’t end up qualifying for Social Security benefits based on her own earnings history, she may be able to qualify for spousal benefits on her husbands record. In order to qualify for spousal benefits her husband would have to be drawing his retirement benefits and your friend would have to either be at least 62 or have a child in her care who qualifies for child’s benefits and who is either under 16 or disabled. Best, Larry
Why Can’t I Collect Both My Wife’s Benefits And My Own Disability Benefits?
Hi Larry, My wife was killed in a car accident in 2016 and I went to collect survivor’s benefits but they told me I couldn’t get a widower’s benefit because I get disability benefits. They said I have to take that instead. Why cant I collect my widowers benefit besides my disability benefit? Thanks, Henry
Hi Henry, I’m sorry for your loss. Under the Social Security Act, if a person files for more than one type of Social Security benefit (e.g. retirement and spousal, survivor and disability, etc.), they can only be paid the higher of the two benefit rates, not both. So if you’re already drawing Social Security disability (SSDI) benefits, you could only qualify for additional survivor benefits if the survivor benefit rate would be higher than your SSDI rate. Best, Larry