Ask Larry: Can I Get My Spousal Benefit First While My Social Security Retirement Benefit Grows?

Today’s column addresses questions about the ability to take spousal benefits before retirement benefits based on birthdate, future benefits estimates, taking benefits while not working and then returning to work and working to help with the coronavirus response while receiving disability 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.

Can I Get My Spousal Benefit First While My Social Security Retirement Benefit Grows?

Hi Larry, My wife just turned 67 and filed for retirement benefits. I will turn 67 in 2/2021. I am under the belief that I can apply for Social Security spousal benefits, one-half of my wife’s total benefit, without hindering the growth in my full benefit between 67 and 70, the latter being my targeted retirement age. Is that true and? And if so, what the guidelines, protocols, and caveats attached to this? Thanks, Greg

Hi Greg, That’s not true. Since you were apparently born after 1/1/1954, you could not file a restricted application just for spousal benefits without also being deemed to file for your own Social Security retirement benefits at the same time. Since your wife was born prior to 1/2/1954 though, she would have the option to file just for spousal benefits without filing for her own retirement benefits, but she could only draw spousal benefits if you’re drawing your retirement benefits.

It sounds like you and your wife have a number of possible filing strategies available to you, and the best strategy depends on a number of different factors. You and your wife may want to strongly consider using my company’s software — Maximize My Social Security or MaxiFi Planner — to fully explore and compare your options so that you can determine 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

How Can I Determine The Amount Of My Future Benefit?

Hi Larry, I filed for a spousal benefit only two years ago, and am currently receiving it. My plan is to file for my own Social Security retirement benefit when I turn 70 in two years. How and where can I now determine the amount of my benefit when I file for my own benefit? The Social Security website doesn’t offer that information online. This information would help us for future planning purposes. Thanks, Mandy

Hi Mandy, We believe that the best and most reliable way to find out what your Social Security retirement benefit would be is to use the benefit calculator in our software. Other websites also have benefit calculators, but I can’t vouch for their accuracy. Best, Larry

Can I Temporarily File For Social Security And Then Stop The Payments When I Resume Work?

Hi Larry, I am just over 62 1/2 and so I’m eligible for Social Security. I was working full time but was furloughed due to Covid-19 social distancing rules. I will return to my full time job when this horrible plague changes the social distancing regulations. I am eligible for unemployment and will also receive the care act funds. Can I temporally file for Social Security retirement benefit during this down time and then stop the payments after resuming my full time job? Is there any downside to this thinking? Thanks, Henry

Hi Henry, You could file for reduced Social Security benefits and be paid at least for any months that you earn less than $1,520 this year, but you couldn’t then voluntarily suspend your benefits until you reach full retirement age (FRA). However, your benefits could be stopped involuntarily due to Social Security’s earnings test if you return to work and earn too much to be paid benefits.

The downside of filing for benefits now would be that your monthly benefit rate would then be permanently reduced based on the number of months that you receive benefits prior to FRA. And, that lowered rate could carry over to the survivor rate that your spouse could be paid if you’re married and you die before your spouse. Also, once you file for your own benefits, that becomes your primary benefit for life, which if you’re widowed could prevent you from drawing survivor benefits while allowing your own benefit rate to grow.

That said, I’m not suggesting that you shouldn’t file for benefits now. Only you can decide what’s best for you in these uncertain times. Best, Larry

If I Went Back To Work in Order To Help Out With The Coronavirus, Would It Affect My Disability Benefits?

Hi Larry, I am on Social Security Disability I’m a retired respiratory therapist since 2012. If I went back to work to help out with the coronavirus would that affect my disability? Thanks, Amir

Hi Amir, I admire your willingness to want to use your skills to help out with the current health crisis, but congress hasn’t passed any exceptions to the normal rules regarding the limit on earnings for people who receive Social Security disability benefits (SSDI). If you return to work and you earn more than the amount that Social Security considers to be “substantial gainful activity” (SGA), then your SSDI benefits could be suspended or terminated.

In 2020, SGA is considered to be earnings that average more than $1,260 per month. However, if you haven’t previously had any earnings since qualifying for SSDI, you’d initially get a 9-month trial work period (TWP) during which you could work and earn any amount without jeopardizing your SSDI benefits. Best, Larry