Economic Security Planning, Inc.
Today’s column addresses questions about applying for benefits during the coronavirus pandemic, eligibility for spousal benefits, survivor benefit eligibility and calculation and when checks are deposited by SSA. 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.
How Can My Wife File For Her Social Security Retirement Benefits Now?
Hi Larry, My wife wants to switch from restricted spousal benefits on my record to her own retirement benefits. She is 69. How do we do it? There is no way on her account to do it because it says she is receiving benefits from me yet her contributions are on there. The Social Security office is closed and I haven’t been able to get through on the phone. Thanks, Josh
Hi Josh, I’m not sure if it would be possible for your wife to apply for her own Social Security retirement benefits online. Social Security’s website claims that they are constantly expanding their online services, so your wife may want to try to file an application online if she hasn’t already done so. The SSA website indicates that it’s possible to file online as long as you aren’t already receiving benefits on your own Social Security record, so if your wife is receiving only spousal benefits then maybe she could use the online filing process.
If online filing doesn’t work for some reason, then there’s currently not much of an alternative to contacting Social Security by phone. Local offices are currently closed to the public due to the coronavirus. If she can’t get through to Social Security by phone and she’s concerned about protecting her filing date, she could mail a signed statement to her nearest Social Security office expressing her intention to apply for her own benefits.
Your wife could even complete and submit a printed form SSA-1-bk if she wants to, although I wouldn’t recommend doing that except as a last resort. Social Security no longer uses paper application forms, so they would still need to interview your wife in order to complete the application process.
Just so you know, Social Security applications filed after a person reaches full retirement age (FRA) can be retroactive for up to six months. So if your wife wants to claim her retirement benefits at 70, she could apply up to six months after the month she reaches 70 without suffering any loss of benefits. Before applying, though, your wife may want to consider using my company’s software — Maximize My Social Security or MaxiFi Planner — to make sure she chooses the best possible strategy for maximizing her benefits. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry
Is My Wife Eligible To File For Spousal Benefits?
Hi Larry, I am 66 and started drawing a reduced Social Security retirement benefit when I turned 62. I currently receive $1,773 from Social Security. My wife of 26 years will turn 62 this year and would like to file for spousal benefits on my record. She receives a benefit of $808 from the Nevada Public Employees Retirement System. Would she be eligible to file for Social Security spousal benefits and if so would they be substantially reduced because of her public benefit from the state of Nevada? Thanks, Toby
Hi Toby, Yes, your wife could file for reduced spousal benefits at 62, and yes, her benefit rate will likely be substantially reduced due to her public employee pension. Assuming that your wife didn’t pay Social Security taxes on her government work and doesn’t qualify for Social Security benefits based on her own earnings, any spousal benefits for which she’d otherwise qualify will be offset by 2/3rds of the amount of her public pension. That’s because of the Government Pension Offset (GPO) provision.
For example, say Kay files for Social Security spousal benefits at age 62. Kay receives a monthly public pension of $810 based on her work, but she never paid Social Security taxes. Kay’s husband is drawing his benefits and his primary insurance amount (PIA) is $2,350. A person’s PIA is equal to their Social Security retirement benefit if they file at full retirement age (FRA). Kay’s unreduced spousal benefit rate would be calculated based on 50% of her husband’s PIA, which in Kay’s case amounts to $1,175 (i.e. $2,350 / 2). However, since Kay is filing at 62, her benefit rate would be reduced for age by roughly 33% to $788. And since Kay is receiving a pension based on her public work, her benefits are reduced by 2/3rds of the amount of her public pension, or $540 (i.e. 2/3 x $810). That leaves Kay with a net monthly spousal benefit of $248 (i.e. $788 – $540). Note that if Kay had waited until her FRA to file for unreduced spousal benefits, her monthly spousal rate after GPO offset would have been $635 (i.e. $1,175 – $540). Best, Larry
Is There Any Way I Can Collect A Portion Of My Deceased Husband’s Social Security?
Hi Larry, My husband died last year and he was 20 years older than me. I’m 52 and have not worked in years. I cannot find a job at this time and cannot pay my utilities. I have no car. My water has been turned off and the Electric Company is threatening to shut me off next week. My neighbor is writing this for me as I have no computer. Despite my age, is there a way I can collect a portion of his Social Security? Thanks, Abbie
Hi Abbie, I’m sorry for your loss. The only way that you could potentially qualify for survivor benefits prior to age 60 is if you’re disabled, or if you have a child in your care who is under 16 or disabled and who qualifies for child or disabled adult child’s benefits. If you believe that you might be considered disabled, you can make an appointment to apply for disabled widow’s benefits by calling Social Security at 1-800-772-1213. Best, Larry
How Much Am I Supposed To Receive?
Hi Larry, My wife passed away in 2001 and just started collecting widower’s benefits. I am 62 and wondering how much am I supposed to receive. Thanks, Danny
Hi Danny, I’m sorry for your loss.
If you were born in 1958 and you claimed widower benefits starting with the month you reached 62, your benefit amount would be paid at a rate of 80.5% of your wife’s primary insurance amount (PIA), which is equal to her full retirement age (FRA) retirement benefit amount. Best, Larry
When Do You Think I Can Expect My First Deposit?
Hi Larry, I am 65. I applied for Social Security retirement benefits and was born on June 12. I asked during the application for a first benefit period of June. When do you think I can expect my first deposit.? Thanks, Donna
Hi Donna, Since you were born in the middle 10 days of a month, your payment for June 2020 would be due on the 3rd Wednesday of July 2020. You may receive your first payment earlier than the scheduled date, but your subsequent payments will always be paid on the 3rd Wednesday of each month. Best, Larry