Dear Liz: My husband passed away and I am 59 years old and no longer work. The Social Security website says by the time I turn 60 I can get 71.5% to 99% of what he would have gotten at full retirement age. What determines whether I get 71.5% or 99% or something in between?
Answer: The range you specify applies if you start survivor benefits before your own full retirement age for such benefits. For people born in 1962 or later, the full retirement age for survivor benefits is 67.
(This differs from the full retirement age for retirement benefits, which is 67 for people born in 1960 and later. Just in case you thought Social Security benefits weren’t complicated enough.)
It also matters if your husband was receiving Social Security benefits when he died. In this case, the survivor’s pension is based on this test. If not, the survivor’s pension is based on the amount he would have received if he had reached full retirement age (if he had died at or before that age) or the benefit he would have earned (if he had died after retirement). full retirement age). would have related.
In general, the earlier you receive a benefit, the less you will receive. If you start your survivor’s pension at the age of 60, you will receive 71.5% of your spouse’s pension. Those who wait until just before the age of 67 get 99%. If you wait until you turn 67, you get 100%.
Your check may also be reduced if you start early on survivor benefits and then return to work. The income test deducts $1 from your check for every $2 you earn above a certain limit, which is $21,240 in 2023. The income test is valid up to the age of 67.
Another thing to consider is the Social Security benefits you earned based on your own work records. This benefit can continue to grow as you delay applying until the amount reaches its maximum at age 70.
You can also switch between a survivor’s benefit and your own benefit, or vice versa. (Conversion is something that isn’t normally allowed with other benefits, such as spousal benefits.)
You can start with the reduced survivor’s benefit at the age of 60 and switch to your own maximum benefit at the age of 70. The right rate depends on the amounts involved, and the math can be complicated. Therefore, consider consulting a financial planner or Social Security claims strategy websites such as Social Security Solutions or Maximize My Social Security.
deferral of social security benefits
Dear Liz: I’m getting conflicting answers about whether my wife, who turns 62 in April, should take her Social Security now. I am 68 and will wait until I am 70 to start receiving my benefits. Will my survivor benefit include the 8% annual increase I will receive when I start receiving benefits in September 2024? And should she now take her benefits at age 62 (especially since we both plan to retire this year)?
Answer: Your wife’s survivor’s pension includes the deferred retirement points you earn by deferring your application. In other words, if you died tomorrow, your survival check would be about 20% higher because you waited. (This assumes you reach full retirement age of 66 in September 2020 and have earned an annual gain of 8% for approximately 2.5 years.)
If you make it to 70, you’ll get an 8% annual bonus every four years (plus, of course, any living expenses your performance has accrued in the meantime).
Since your performance determines the survivor’s performance, it is more important for you to delay their application than it is for them to delay their application. Still, she will most likely maximize her lifetime benefit by procrastinating when she can.
The right strategy depends on the specifics of your financial situation. Therefore, contact a paid financial planner for personal advice.
Liz Weston, a certified financial planner, is a personal finance columnist geek wallet. Questions can be directed to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact Us” form at askliweston. com.
Source: LA Times