Economic Security Planning, Inc.
Today’s column addresses questions about whether it’s still possible to delay filing till 70 if a spouse files at 66, getting both retirement and child-in-care spousal benefits, the calculation of divorced spousal benefits, the earnings test and uncompleted online applications. 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 Still Delay Social Security Retirement Benefits If My Spouse Files At 66?
Hi Larry, I just want to clarify given the changes with SSA benefits. Both my husband and I will achieve full retirement at 66 and two months since we both were born in 1955. With the recent changes, is it possible for my husband to file for his retirement benefit at his full retirement age and for me to wait until 70 to file for my retirement benefit? If so, is there anything as a spouse I need to do to accomplish this? Thanks, Donna
Hi Donna, Yes, your husband could file for his retirement benefits at full retirement age (FRA) and you could file for your retirement benefits at 70. However, you couldn’t draw spousal benefits while you’re waiting until 70 to file for your own benefits. Only people born prior to 1/2/1954 are able to do that. Everyone born after 1/1/1954 is deemed to be filing for both their own Social Security retirement benefits and for spousal benefits whenever they apply for either benefit.
To accomplish what you describe in your question, you and your husband would each need to file applications at the appropriate times. In his case that would be at FRA and in your case it would be when you reach 70. However, I have no way of knowing whether or not your plan is a good option or not. Your best strategy depends on a number of different factors, so you and your husband might want to use one of my company’s programs — Maximize My Social Security or MaxiFi Planner — to fully explore and compare all of your options so that you can choose the best possible strategy for claiming 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
Can My Wife Draw Her Own Benefits In Addition To Child In Care Benefits On My Social Security Account?
Hi Larry, If my wife, who is under 62, is receiving child-in-care spousal benefits, will she be able to continue receiving this benefit in addition to her own Social Security retirement benefit when she claims or would she only get one benefit or the other depending on which one is higher but not both? Thanks, Charlie
Hi Charlie, Your wife could not get both her own retirement benefit and a full child-in-care (CIC) spousal benefit at the same time. If she’s drawing CIC spousal benefits and she later files for her own benefits, she could not be paid any more than the higher of those two benefit rates.
To clarify, though, Social Security always pays a person’s own benefit first. So if your wife files for her retirement benefits and her unreduced benefit rate is lower than her CIC spousal rate, she’d be due her own benefit plus an excess CIC spousal benefit. This partial CIC spousal benefit would be calculated by subtracting your wife’s own primary insurance amount (PIA) from her full CIC spousal rate. A person’s PIA is equal to their Social Security retirement benefit rate if they start drawing at full retirement age (FRA). Therefore, if your wife is drawing a CIC spousal benefit, which would not be reduced for age, and she then files for her own benefits prior to FRA it could result in a lower combined monthly rate. Best, Larry
What Amount Should My Ex-Spouse Receive?
Hi Larry, My ex wife filed for her early retirement in 12/2019. She turned 62 in 2/2020 and she also filed for divorced spousal benefits based on my record. My PIA $2,310. I am now 76. We were married for 11 years and she has not remarried.The Social Security office determined an early retirement amount of $673 for her retirement benefit and an amount of $769 for her divorced spousal benefit.
They said she would get a combined sum of $673 + $769 for a total of $1,442 but I beleive this is incorrect. I calculate closer to $815. Am I correct? In addition, she did receive an award letter from Social Security for her retirement benefit but not yet for her divorced spousal benefit. Why would it take this long to resolve this matter? Thanks, Ted
Hi Ted, If $2,310 is your primary insurance amount (PIA) and your ex-wife’s PIA is less than half of that amount, I would agree that your calculation should be close to what your ex could expect to be paid at 62. The exact amount would depend on the amount of her PIA, though, so I can’t give you a precise figure. A person’s PIA is equal to their Social Security retirement benefit if they start drawing at full retirement age.
When a person files for more than one type of benefit at the same time (e.g. retirement benefits and divorced spouse benefits), frequently only the first claim can be processed by the local office through their computer system. The other claim must be transferred to one of Social Security’s payment centers, and an employee there must act to process that claim. Obviously, that delays processing of the second claim. I assume that’s what occurred with your ex-wife’s claims. Best, Larry
Can I Collect My Deceased Husband’s Social Security Without Quitting My Job And Still Be Able To Change Over To My Amount At FRA Or Age 70?
Hi Larry, I contacted SSA regarding survivor benefit. My husband passed 10 years ago. I have received two different answers. The last being that I could collect my widow’s benefit without having to quit my job and still be able to change over to my retirement benefit at any time between my full retirement age and 70. This was not the same answer I received previously. Thanks, Ashley
Hi Ashley, I’m sorry for your loss.
I can’t give you a definite answer because you don’t mention your current age nor how much you’re earning. You could potentially qualify for widow’s benefits starting as early as 60, or 50 if you’re disabled, but if you file for benefits prior to full retirement age (FRA), your benefits would be subject to full or partial withholding if you earn too much due to Social Security’s earnings test. Normally, you would want to start out drawing the lower benefit first and then switch to the higher record when it reaches its highest potential rate. Best, Larry