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Today’s column examines how married couples can file for benefits in sequence, qualifying for early Social Security benefits, logistics of applying, the earnings test and whether filing for early reduced retirement benefit will lower survivor’s benefits claimed later. Larry Kotlikoff is the founder and president of Economic Security Planning, a company that markets Maximize My Social Security, a Social Security benefits calculator referred to in this post.
See more Ask Larry answers here.
Ask Larry about Social Security:
How Should My Wife File For Social Security Now That I Have?
Hi Larry, I am 67, retired and filed for my Social Security retirement benefits in 2017 at a little over 66. My spouse is 61 and still working. We have approximately the same benefit amounts at FRA. Are there any other strategies other than waiting for her FRA for her to file? Thanks, Ted
Hi Ted, Your wife could file for her benefits any time between 62 and 70, and her benefit rate would be adjusted accordingly. However, her benefits would be subject to the Social Security earnings test until she reaches full retirement age (FRA). Since she was born after 1/1/1954, she could never file just for spousal benefits only without being deemed to also be filing on her own account, so it sounds like she’ll never be eligible for spousal benefits if your Primary Insurance Amount (PIA), which is equal to your full retirement age (FRA) retirement benefit amounts, are roughly the same.
On the other hand you could have filed just for spousal benefits only if you hadn’t already filed for your own benefits, but your wife would have to be drawing her benefits in order for you to be eligible for spousal benefits. In theory, you could still withdraw the application that you filed for retirement benefits, but that would require you to repay all of the benefits you’ve received so far. However, that would enable you to potentially draw spousal benefits if your wife filed for her benefits early, in which case you could then let your own benefit rate grow until age 70. Best, Larry
Will I Still Qualify For Early Social Security At Age 62?
Hi Larry, I am 54 and I work full time but I am also the caregiver for my husband who is disabled from double lung transplant. If I have to stop working to take care of him, will I still qualify for early Social Security at 62? And should I be widowed, would I qualify for widows benefits at 60? it is so confusing! Thanks, Shelly
Hi Shelly, Yes, as long as you have at least 40 quarters of Social Security coverage (i.e. 10 years), your could start drawing Social Security retirement benefits as early as age 62. And if your husband is drawing his benefits, you could potentially qualify for spousal benefits as early as 62, but only if your own Primary Insurance Amount (PIA), which is equal to your full retirement age (FRA) retirement benefit amount, is less than 50% of your husband’s PIA. You could basically just qualify for the higher of those two rates, and your rate would be reduced for age if you start drawing benefits prior to your full retirement age (FRA) of 67.
If your husband dies before you, you could potentially qualify for widow’s benefits as early as 60 or even before then if you’re disabled. But again, your widow’s rate would be reduced for age if you start drawing before your FRA. In that event you could potentially file for widow’s benefits first and for your own retirement benefits later, or vice versa. Regardless of what the future may hold, you should strongly consider using an expert Social Security benefits calculator, such as my company’s software or other comprehensive and careful software to explore your filing options and determine your best strategy before you file for benefits. Best, Larry
Have I Lost Two Months?
Hi Larry, What is the effective date of my application for Social Security benefits? Specifically, I was recently told that I should not have delayed my application and gone to my local Social Security office to apply. They could not make an appointment for me until 2 months later. So I drove across the state to another office and the agent there said the actual date of my application would be the date I requested an appointment, not the date of the appointment. Is this correct? Have I lost two months or not? Thanks, Cal
Hi Cal, It doesn’t sound like you lost two months. When you make an appointment with Social Security to file for benefits, a protective filing date is established as of the date you make the appointment. So even if your actual appointment date is 2 months after you make the appointment, you can choose to use your initial contact date as your filing date. Which filing date you choose optional, though, so you could use either your protective filing date or your actual filing date. Best, Larry
At What Age Can I Draw Widow’s Benefits And Still Continue To Work?
Hi Larry, I’m a 54 yr old widow who was married for 33 years. At what age can I draw my Social Security widow’s benefits and still continue to work earning more than $70k per year? I was planning on drawing on my own Social Security retirement benefit at 67 or 70. My widow’s benefits are only $100 less than what I would collect at 67. Thanks, Carly
Hi Carly, Based on the current earnings test rules and amounts, you probably wouldn’t be able to earn over $70K and still receive widow’s benefits until the year that you reach your full retirement age of 67. It would actually depend on your benefit rate and the future earnings test exempt amounts, though, so you should probably check when you get close to age 60 to see whether or not if might be possible to draw at least some widow’s benefits sooner.
Based on your description it sounds like your best strategy would likely be to file for your widow’s benefits at age 60, or as soon as your earnings will permit at least some benefits to be paid, then switch to your own record at age 70. However, this is very contingent and you should look further into this before deciding what to do, perhaps using an expert Social Security benefits calculator, such as my company’s software or other highly accurate software, in order to verify that that is in fact your best strategy. Best, Larry
Could My Cousin Get Unreduced Survivor Benefits If Her Ex Dies?
Hi Larry, My cousin started drawing her Social Security retirement benefit at 63 and is drawing only around $700 per month. She was divorced a few years ago after 15 years of marriage and her ex is drawing disability at around $1,200 per month. If he passes away and she waits until her full retirement age (FRA) of 66, will she be able to draw the extra $500 to bring her to the full $1,200 that he draws? Even though she started drawing her own at 63? Thanks Derek
Hi Derek, In this situation, if your cousin didn’t get remarried before 60 and her ex dies, it sounds like she would potentially be eligible for a combined benefit amount equal to her ex’s full benefit rate as long as she doesn’t start drawing the survivor benefits prior to her full retirement age (FRA). Survivor benefits starting at FRA or later are unreduced even if the survivor previously drew reduced retirement benefits on their own record. Best, Larry
To learn more about your Social Security options, visit Economic Security Planning, Inc.