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Today’s column includes a warning about potential Social Security fraud, addresses effects of spousal benefits on other benefits, switching between benefits, when excess spousal benefit can be available, and options with older and younger spouses. 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:
Social Security Needs to Provide an Online Registry of Benefit Recipients
Hi Larry, I don’t have a question but I do have a warning for others. I teach at a law school and greatly admire your work, of which I inform students headed for estate planning careers. I thought I would share my own experience last week. I learned that someone had my Social Security number, date of birth, and birthplace and that they had applied online for my Social Security benefits four days after my sixty-third birthday, an address and a phone number for direct deposit into a bank account, all of which was entirely fraudulent. I would never have known this if the fraudster had not slipped up and reapplied for benefits using my actual mailing address, so that the SSA sent me a confirmation by mail. The fraudster had enough information about me to convince an SSA employee of this impersonation, and to answer questions about my purported 2019 work plans. I seem to have stopped the fraud at only four months of early retirement benefits. When I do begin taking social security, I will have to appear in person at a SSA office. Other than this I find nothing on credit reports that indicates further identity theft.
Since you have audiences that may benefit from being aware of this, I thought that I would mention this to you, in case you want to tell anyone age 63 and over who hasn’t begun receiving Social Security that they might check with SSA to confirm whether anyone has fraudulently applied for benefits in their name, as someone did to me. Thanks, Allen
Hi Allen, Your story makes clear how easy it is for Social Security to get snookered into giving our benefits to people fraudulently claiming our identities. The Social Security system needs to set up an online directory of beneficiaries so that we can all check that our benefits aren’t being paid to thieves. Since I doubt Social Security will do so anytime soon, we probably should call the 800 number periodically and double check nothing untoward is happening with our money. I have no doubt that Social Security will pay us what’s owed to us once they resolve that we are in fact we. But they can take a very long time to process any request. So nipping benefit fraud in the bud seems very important. Best, Larry
Can My Husband Draw From My Social Security Without Affecting My Dollar Amount?
Hi Larry, I am 70 and drawing my Social Security retirement benefit based on my own work record after having previously received a widow’s benefit from my late husband. My second husband is 69 and drawing a Social Security widower’s benefit from his first marriage. Can he draw a spousal benefit based on my Social Security record without affecting the dollar amount of my own retirement benefit? When might it be beneficial for him to file for his own Social Security retirement benefit? Thanks, Lucy
Hi Lucy, If your husband could qualify for spousal benefits from your record it would have no adverse affect on your benefit rate. However, he could only be eligible for benefits on your record if 50% of your Primary Insurance Amount (PIA), which is equal to your full retirement age (FRA) retirement benefit amount, is higher than what he receives on his deceased wife’s record. Your husband may want to check with Social Security to see if that’s a possibility.
If your husband’s own Social Security retirement benefit rate would be higher than either his current widower’s rate or his potential spousal rate from your record, then he would want to start drawing on his own record no later than 70. His retirement benefit rate will continue to grow until 70 as long as he doesn’t claim benefits on his own record until then. Best, Larry
How Do I Switch From Spousal Benefits To My Social Security Benefits?
Hi Larry, At FRA I started and am still currently receiving my spousal benefits. I turn 70 this year and need to know how to switch from spousal benefits to my own Social Security retirement benefits? Thanks, Greg
Hi Greg, You’ll need to file another application in order to become entitled to Social Security retirement benefits on your own record. You can’t file online since you’re already receiving benefits, so you’ll need to file either by phone or in person at a Social Security office. You can file your application up to 4 months prior to the month that you want to start drawing on your own record, and you can make an appointment to apply by calling Social Security at 1-800-772-1213. Best, Larry
Is It Correct That I Can File For An Excess Spousal Benefit When My Husband Files?
Hi, I filed for my Social Security retirement benefit on my record at my full retirement age last November at 66 and my PIA is $1,025 per month. Do I understand correctly that I can file for excess spousal benefit when my husband, who turned 64 in March, files for his retirement benefit? He plans to wait until 70 to file. As of now, his PIA at FRA is $2,700. Or is there a better strategy for us? Thanks, Stacey
Hi Stacey, Yes, since your husband’s Primary Insurance Amount (PIA), which is equal to his full retirement age (FRA) retirement benefit amount, is more than twice as much as your PIA, you should qualify for an excess spousal benefit when he starts drawing his benefits. It appears that your current strategy is fine, but you and your husband may want to consider using an expert Social Security benefits calculator, such as my company’s software or other very accurate and careful software, to compare all of your options so that you can choose the strategy you feel is best. Best, Larry
What Is The Best Strategy For My Wife?
Hi Larry, I plan to take my Social Security retirement benefit at the of 70, next year. My wife is 15 years younger than I, and she never worked outside the house. What will be her best Social Security filing strategy in case I’m still around at her full retirement age and what would it be if I’ve passed by then? Thanks, James
Hi James, If you’re living, your wife would want to file for spousal benefits no later than her full retirement age (FRA) of 67. She could file as early as age 62, but her benefit rate would then be reduced by roughly 35% and she’d be stuck with the reduced rate for as long as both of you are living.
Regardless of when your wife starts drawing spousal benefits, though, if she’s at least FRA when she becomes entitled as a widow she would receive your full benefit rate inclusive of the delayed retirement credits you’ll earn by waiting until age 70 to file. She could be paid widow’s benefits as early as age 60, but her benefit rate would then be reduced by 28.5%. Best, Larry
To learn more about your Social Security options, visit Economic Security Planning, Inc.