Economic Security Planning, Inc.
Today’s column addresses questions about how filing early can affect a spouse’s benefits, whether survivor benefits from a spouse’s public pension can reduce Social Security benefits, children’s survivor benefits, divorced spousal benefits and estimated age 70 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.
Will My Wife’s Social Security Spousal Benefit Be Reduced If I File Early?
Hi Larry, I am 64 and still working, although for reduced hours. My wife is 69 with no work record and no credits — she was a stay at home mom. We’d like to claim retirement benefits so I can more comfortably leave the work force completely, although we could manage without Social Security benefits. I understand she would be entitled to half of my PIA if I start to claim retirement benefits now, although I would receive a smaller benefit for filing before my FRA. Given my wife’s age, I think it may be foolish to leave her spousal benefit on the table while I wait to attain FRA. Do you agree? Thanks, Clive
Hi Clive, Your understanding is correct. If you start drawing your benefits at 64, your wife who is past full retirement age (FRA) could receive 50% of your Primary Insurance Amount (PIA), which is equal to your full retirement age (FRA) retirement benefit amount, even though you would receive less than your PIA. You may want to explore your options more fully using either of my company’s programs — Maximize My Social Security or MaxiFi Planner — which both account for all of the calculations necessary to help you determine the best strategy for maximizing benefits for you and your wife. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry
If My Husband Gets A Survivor Pension Based On My Post Office Work Will It Reduced His Social Security?
Hi Larry, I am a retired CSRS postal employee. My husband’s survivor benefit from me would be $1,896 monthly. Would this reduce his Social Security retirement benefit payment, which will be based on his work earnings, not mine. Thanks, Karen
Hi Karen, If your husband receives a survivor pension from your CSRS (Civil Service Retirement System), it would have no effect on his Social Security benefits. Best, Larry
Will My Daughter’s Benefits Go Up When Her Brother No Longer Collects?
Hi Larry, I am looking for information regarding survivors benefits. I seem to be finding information that does not directly apply to my situation. My daughter and her brother get benefits due to their father passing a few years ago. However he has a different mom and will be turning 18 this year. Will her benefits go up once he turns 18 and no longer collects? Thanks, Candice
Hi Candice, Assuming that their are only two children and no one else receiving benefits on their father’s record, then the answer is no. Each eligible surviving child of a deceased worker can receive a maximum of up to 75% of the worker’s Primary Insurance Amount (PIA), which is equal to their full retirement age (FRA) retirement benefit amount, subject to reduction if total family benefits exceed the family maximum benefit (FMB) that can be paid on the deceased worker’s record.
The FMB payable based on a deceased person’s record is always at least 150% of their PIA, so if only two children are eligible for survivor benefits, they can both be paid their maximum possible benefit rates. So your daughter would receive the same benefit rate regardless of whether or not her brother stops receiving benefits. Best, Larry
Is There Any Way That I Can Collect From My Ex’s Record Before She Turns 62?
Hi Larry, I’ll be 62 this June and my ex is 53. We were married for 21 years. I know I can collect a divorced spousal benefit based on her record eventually as I have friends who have done this before. We’re from Canada and she started to work in Michigan in 2001 and is still working and living in the US. Is there any way I can collect based on her record before I’m 71 and she is 62? Thanks, Winston
Hi Winston, You could only do so if your ex becomes entitled to Social Security disability (SSDI) benefits. Otherwise, you couldn’t qualify for divorced spousal benefits on her record until she reaches age 62.
You could of course file for your own Social Security retirement benefits as early as 62 if you have enough work credits to qualify. If you do qualify for benefits on your own record, though, the only way that you could also receive divorced spousal benefits is living is if 50% of her primary insurance amount (PIA) is higher than your PIA. A person’s PIA is equal to their Social Security retirement benefit rate if they start drawing at full retirement age. Best, Larry
Is There A Way To Find Out What My Current Projected Benefit Will Be At Age 70?
Hi Larry, I am collecting my Social Security spousal benefit from my wife’s record, having used the restricted application strategy you have explained, and so letting my own retirement benefit grow until I turn 70. Before I filed, I would receive annually a letter outlining my projected benefit at 62, 66, and 70. Apparently you no longer receive that letter when you start collecting. Is there a way to find out what my current projected benefit will be at 70 when I switch to my own retirement benefit? I have checked the SSA website and it does not have that information in my account. Thanks, Earnie
Hi Earnie, For some reason, Social Security stops issuing Social Security retirement benefit estimates online or by mail to people who are drawing spousal benefits. You might be able to get an estimate by calling or visiting a Social Security office, or you could definitely get an accurate estimate by using my company’s software — Maximize My Social Security or MaxiFi Planner. And as I noted above, Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry