Dear Liz: I’m 68 years old and still working. I plan to wait until age 70 to maximize my benefits before signing up for Social Security. My spouse (born in 1956) passed away in 2018 when he was 62 and had just started collecting Social Security benefits.
Although I am a higher income earner, I think I can receive survivor benefits from my wife’s social security if I apply. I’m also wondering if you could switch to your own benefits when you turn 70, and your benefits would be even higher then.
But if I were to make such a switch at age 70, would my benefit be at its maximum because I waited until age 70, or would it be less than the maximum because I would have started receiving my wife’s survivor benefit, or would it be worse because my wife would have started receiving her benefit sooner? There are many articles dancing around this question, but never an answer. Could you please answer this question?
answer: Social Security can be very complex, with different rules depending on your age, marital status, and the type of benefits involved. For example, survivor benefits have different rules than spousal benefits, and both work differently than retirement benefits, which individuals receive based on their work performance. It is wise to want to understand exactly how the rules will affect your situation before applying.
It’s right that you can apply for survivor benefits now and convert them to your own retirement benefits when you reach the maximum amount at age 70. retirement Your benefits will not be reduced because you collect survivor benefits first or because your wife starts receiving benefits earlier.
However, your of the survivors Since she started early, the profit will be smaller than expected. Survivor benefits are determined by the amount the deceased spouse received at the time of death.
Survivor benefits can begin at age 60 if the survivor is disabled or age 50 if the survivor is disabled. Additionally, if the surviving family is raising a minor or disabled child through marriage, it can begin at any age.
But if you started early, your benefits would have been further reduced and subject to an additional means test that deducts $1 for every $2 you earn above a certain limit ($23,400 in 2025). Once you reach full retirement age, the income test disappears. If you were born in 1957, your retirement age is 66 years and 6 months.
There is no benefit to delaying your application until you are past retirement age. That means they missed out on several months of survivor benefits that they would have received. If you apply, you will receive 6 months worth of back benefits, but that is the limit.
Dear Liz: Next year I will be 64 and my wife will be 62. I plan to wait as long as possible to apply for Social Security, preferably until age 70. At full retirement age (age 67) my benefits are approximately $3,400 per month and my wife’s benefits are approximately $1,100. Even if she waits until age 70 to apply, half of my benefits will always be higher than hers. Can she apply for early benefits next year (about $800 per month) and switch to my half when I finally apply? Does the “deeming” rule affect this? Will she actually receive my half if I apply early?
answer: If you have already started receiving benefits, your wife will be considered to have applied for both her own benefits and spousal benefits, and will be awarded the greater of the two. You couldn’t apply for just one, and you couldn’t switch later.
However, spousal benefits will not be triggered because they have not yet started. The only benefits she can currently claim for are her own. Once you apply, spousal allowance becomes available, and if the amount is large, you can switch to it (which seems to be the case).
Spousal benefits can be up to half of the amount the primary earner receives when they reach retirement age, but the amount is reduced if you start early. If she applies for benefits before reaching retirement age, in other words, her spousal benefit will be less than 50%.
Additionally, benefits begun before the applicant’s full retirement age are subject to the means test as described above.
With so many different factors at play, it makes sense to use one of the paid Social Security claims strategy sites like Social Security Solutions or Maximize My Social Security.
Liz Weston, a certified financial planner, is a personal finance columnist. Questions can be directed to 3940 Laurel Canyon, No. 238, Studio City, CA 91604 or by using the “Contact” form below. .
