In today’s column, I’ll explain questions about spouse allowance eligibility and what it means to work while receiving spouse allowance eligibility and disability allowance if you were born after January 1, 1954. Larry Kotlikoff is a professor of economics at Boston University and Economic Security Planning, Inc. Founder and president of.
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Do you have your own social security question that you would like to answer? Ask Larry about social security here.
Can my wife now enjoy the benefits of a social security spouse while I’m delaying to 70?
Hi Larry, after receiving what looks like different responses during various calls to SSA, I am writing to you in the hope that you can provide some guidance. I was born in January 1952 and my wife was born in September 1951. Neither is claiming a social security retirement allowance. I’m not working anymore. My wife is still working and is above the expert amount. My estimated 70-year-old benefit is about $ 3,900 and my wife’s 70-year-old benefit is about $ 1,600.
My wife was told that if I didn’t apply, I could now apply to collect 50% of the profits I would have received at the age of 66. Is that correct? Is it correct that she can claim that benefit six months ago, assuming yes and given that she is recorded in the SSA for a protected declaration? When she reached the age of 70, she was told she could continue to receive the higher of her spouse’s allowance or her retirement allowance. Is that correct?
Can my wife then switch to receiving a new spouse allowance of 50% of the monthly amount that turns 70 when she begins collecting?
Finally, if she received her spouse allowance for the four months before she turned 70, can she still receive the spouse allowance? And can I switch to retirement benefits when I turn 70?
Do you have this right?Thank you Patrick
Hi Patrick, your wife will not be eligible for spouse benefits, at least until you start withdrawing your retirement benefits. Most of what you can pay to your wife is her own benefit rate or 50% of your primary insurance amount (PIA). An individual’s PIA is equal to the social security retirement benefit rate if they begin to withdraw benefits at full retirement age (FRA).
Again, your wife will not be eligible for spouse benefits, at least until you start withdrawing retirement benefits, and she will still be her own amount or 50% of your PIA. Your 70-year-old rate was only paid up to the higher of.
Also, you will not be able to receive spouse allowance from your wife’s account unless your wife withdraws her allowance. Based on the benefit rate in your question, it seems that your wife should probably have applied for her benefit at her FRA. You can then collect a spouse allowance from the FRA and switch to withdrawing a retirement allowance at the age of 70. And once you start using your records, your wife can apply for an excess spouse allowance.
Unfortunately, you can only claim benefits retroactively for up to 6 months from the date of application. Therefore, your wife can now apply for her benefits and claim a 6-month retroactive benefit, and then retroactively claim her spouse benefit for the same 6 months. .. When you apply for your retirement allowance, your wife can receive her spouse allowance.
However, before submitting, you and your wife should use my company’s software Maximize My Social Security or MaxiFi Planner to ensure that the numbers are accurate and the strategy outlined above is actually the best. It’s a good idea to make sure it’s an option. Social security calculators provided by other companies and nonprofits may provide appropriate suggestions if created with the utmost care.Best, rally
Does what I read on the Social Security website mean that since I was born in 1955, I have been unable to delay retirement benefits and receive only spouse benefits?
Hi Larry, while investigating our plans to claim social security benefits, I came across a statement on the Social Security Administration website:
“If your spouse’s birthday is after January 2, 1954, you no longer have the option to receive only one benefit at full retirement age. If your spouse applies for one benefit, all retirement benefits or spouse Apply for benefits effectively. “
Does this mean I haven’t been able to delay retirement allowances while receiving spouse allowances since I was born in 1955? He will turn 70 in October of this year and will apply for his interests at that time. How about filing and suspending?Thank you, Kelly
Hello Lisa. Yes, Congress amended the Social Security Act in 2015 to prevent people born after January 1, 1954 from collecting spouse benefits and to raise their benefit rate to 70. This is also known as returning the application to spouse benefits only.
Since you were born on or after January 1, 1954, applying for either retirement or spouse allowance will be considered as applying for both. In that case, basically only the higher of the two fees will be paid, and if you start the lottery before the full retirement age (FRA), the fee will be reduced according to your age.
Anyone can suspend retirement benefits after the FRA, and if someone applies early, there are various reasons, but those born after January 1, 1954 will not be able to receive the benefits. As a result, the application and suspension strategies cannot be implemented. In the record of someone who suspended their interests.
And be aware that even if it was still feasible, your husband, not you, would have applied for and suspended his retirement allowance. You would simply postpone your retirement allowance and apply only for your spouse allowance. But, as I said, this is unfortunately not an option for you.Best, rally
Can I earn more when I turn 62 without being punished?
Hi Larry, I’ve been using SSDI since 2015 and will soon be 62 years old. My current profit is about $ 2,175. I was able to work within the guidelines and created a remote free lance for only $ 15,000. However, it is very difficult to live for this amount of money. When I turn 62, can I earn more without being punished?Thank you, Allen
Hi Allen, even at the age of 62, I am not eligible for Social Security Disability (SSDI) benefits.
To continue eligibility for SSDI benefits, which are automatically converted to regular social security retirement benefits upon reaching full retirement age (FRA), social security is more than defined as a substantive beneficial activity (SGA). You can’t work and earn. The current monthly SGA limit for blind people is $ 1,310. That amount does not increase just because a person is 62 years old, or any other age before the FRA.
Theoretically, when you reach 62, you can choose to switch to withdrawal of social security retirement benefits instead of SSDI. In that case, you will be subject to the regular social security income test instead of the SGA test. A regular social security income test exempts the first $ 18,960 earned in 2021 and then withholds a $ 1 benefit for every $ 2 earned above $ 18,960.
However, if you switch to retirement allowance at the age of 62, the benefit rate will decrease according to your age. SSDI benefits are not reduced with age and are paid at 100% of the primary insurance amount (PIA). If you choose to switch to retirement benefits at 62, your monthly benefit rate will be reduced by approximately 29%.
Depending on the current SSDI monthly benefit rate, the monthly benefit loss may be more than sufficient to offset the additional amount you would get if you switched from SSDI to retirement benefits.Best, rally