As we speak’s Social Security column addresses questions on taking early diminished retirement advantages and switching to spousal advantages, shifting from a survivor’s profit to a retirement profit and taking a retirement profit whereas awaiting approval of a incapacity software. Larry Kotlikoff is a Professor of Economics at Boston College and the founder and president of Financial Security Planning, Inc.
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Can My Spouse Take Social Security Retirement Profit at 62 And Spousal Advantages Later?
Hello Larry, I’m 58 and plan to retire at 70 or later. My spouse is 61 and will likely be eligible to obtain some advantages subsequent 12 months at 62. My spouse has not labored on a job very a lot and would solely obtain about $240.
Can she take that at 62 and later get her spousal profit equal half of what I am going to get? Or ought to she wait till I retire? We’re unsure how this works. Thanks Aaron
Hello Aaron, Your spouse is free to start out drawing her ownretirement advantages as early as age 62, however she’ll be caught with the ensuing discount in her personal price for so long as each of you might be dwelling.
She may be eligible to obtain a partial, or extra, spousal profit as well as that will carry her whole spousal profit as much as 50% of your major insurance coverage quantity (PIA), much less her discount for submitting early.
An individual’s PIA is the quantity they’d obtain if they begin drawing their advantages at full retirement age (FRA). Your spouse’s profit could be diminished beneath this in accordance with what number of months earlier than her FRA she information. If her PIA is lower than half of your PIA — not your elevated profit at 70 — then she will obtain an extra spousal profit along with her diminished retirement profit.
Her extra spousal profit could be equal to 50% of your PIA minus 100% of her PIA if she information for her spousal profit at her FRA. If she information for her spousal profit earlier than her FRA, her extra spousal profit would even be diminished.
It sounds such as you and your spouse might wish to think about using my firm’s software program — Maximize My Social Security or MaxiFi Planner — to make sure your family receives the best lifetime advantages. Social Security calculators offered by different firms or non-profits might present correct options in the event that they had been constructed with excessive care. Greatest, Larry
Will I Proceed To Obtain Survivor Advantages Till I Begin Getting My Personal Advantages?
Hello Larry, I am receiving survivor advantages and can apply for my very own Social Security retirement profit in March. Will I proceed to obtain my survivor advantages till that point and in that case what occurs to the 2 week distinction in January since I used to be informed my test will come within the fourth wee relatively than the second because it does now.
I’ve used your program previously and it modified my life. At 60 I known as SSA they informed me I would get $1,000 which was not sufficient to get by on. A couple of months later I ordered your program. In response to it I would obtain $1,500. So I made an appointment and went in to speak to an agent and your program was right.
I continued to work till 62, drew my survivor advantages with the intent to attract my very own at 70. However that will not be the very best determination for me. Thanks, Cheryl
Hello Cheryl, Sure, though you will not be paid each a survivor profit and your personal retirement profit in the identical month. In the event you declare your personal retirement advantages for March, that is the fee that arrives in April.
So your final survivor profit fee ought to then arrive within the second week of March, and your first retirement profit fee could be due within the fourth week of April. Generally Social Security can pay an individual’s first fee on a special date than their regular fee date although, so assuming that you simply apply prematurely, you may obtain your first retirement profit fee earlier in April than within the fourth week.
UPDATE: A subsequent reader reported that their fee date did not change after they switched from survivor to retirement advantages, so it is doable that Social Security has a coverage of not shifting an individual’s fee date if they begin out amassing survivor advantages and later change to drawing their very own advantages.
The part of Social Security’s operation’s handbook (POMS) that covers these sorts of insurance policies just isn’t made public by Social Security, so I haven’t got entry to these sorts of coverage points. It is doable although that your fee date might keep the identical even after you turn to amassing your personal advantages. Greatest, Larry
Can I Acquire Retirement Advantages Whereas Ready For A Incapacity Determination?
Hello Larry, I am age 62. Can I gather Social Security advantages whereas I watch for a dedication on my Social Security Incapacity declare ? I perceive this course of takes a while as they gather medical verification.
Will this early withdrawal adversely have an effect on my incapacity profit if I’m permitted? Secondly, is it worthwhile to rent a incapacity advocate or lawyer to maneuver issues alongside faster? Thanks, Steph
Hello Steph, Sure, it is doable to attract diminished retirement advantages whereas your incapacity declare is pending. Nevertheless, your profit price will likely be completely diminished if you’re paid for any months previous to your month of incapacity entitlement.
I am unable to actually advise you whether or not or to not appoint a consultant to deal with your incapacity declare. I do not assume it could essentially pace up the processing of your declare, however a great consultant might be able to current your case in a extra favorable gentle.
The draw back is that there would doubtless be a price for the consultant’s service, which can be pointless in case your declare would have been permitted anyway. Greatest, Larry