A Few Key Points Which You Need To Know About Social Security Spouse Benefits When most of the people think about Social Security, they normally think of retirement benefits. However about 1/5 of all Social Security benefits are spousal or survivor benefits, therefore when you are planning for retirement, it is important to consider the fact that you or your spouse might get Social Security survivor benefits or spousal benefits at few points in their life. Here, we are gonna talk about the fundamentals of Social Security spousal benefits. Basically, a married person can get a spousal benefit equal to half of her husband's basic benefit, also termed the PIA (primary insurance amount). Social Security spouse benefits generally come into play when a spouse takes time away from work to raise a family, and therefore has very little or no income. Calculating the Spousal Benefit: The spousal benefit is in fact a combination of both spouses' benefits. If a married person has enough credits to qualify for Social Security on her own, then her credit will be figured first. If it is lower than her spouse's benefit, she will get her benefit plus an adjustment to equal half of her husband's primary benefit. When you should Begin the Spousal Benefit: You could apply for the spousal benefit as early as age 62, as long as the working or higher earning spouse is eligible and has applied for benefits. It does not good for the lower earning spouse to wait beyond her complete retirement age to apply for spousal benefits as the spousal benefit won't earn credits beyond the full retirement age. So, spouses applying for the spousal benefit must do so when they reach full retirement age. How Early Retirement Affects The Spouse Benefit: Spouses who apply for the spousal benefit before she is complete retirement age will get a reduced benefit exactly like she would if she applied for her own Social Security benefit before complete retirement age. This reduced benefit is permanent, even if she takes her spousal benefit at the age of 62 and switches to her own benefit at complete retirement age. Some other Considerations: Individuals who begin collecting retirement benefits before complete retirement age can just earn up to a definite amount before they have to pay back part or all of their Social Security benefits. In '09, that amount is $14,160. If you earn higher than $14,160, you need to pay back $1 for every $2 you earned over the limit. This earnings test applies to spousal and survivor benefits and retirement benefits, so if you expect to work before you reach complete retirement age, you must delay your retirement and spousal benefits. In this article, I've referred to the wife as the lower earning spouse out of simplicity. But, in today's world, it is not uncommon for the wife to be the higher earning spouse. The great news is that Social Security is gender neutral, so the Social Security spouse benefits can apply to the wife or husband, in addition to the higher or lower earning spouse. How Social Security Spousal Benefits Work Can a spouse collect on her husband's social security if she reaches retirement age before her husband? No. In order for a wife to collect Social Security benefits on her husband's earnings the following requirements must be met: How Are Social Security Benefits Calculated? Few Things & Factors Having Effect On The Benefits One of the most popular Social Security questions that I hear from baby boomers getting ready to retire is "how are Social Security benefits calculated?" This is an important question because it could affect how long you need to work, whether you should continue to work during your retirement years Social Security Survivor Benefits- The Thing Women Should Learn About When Social Security was established most women did not work. Lower or no earnings combined with a longer life span meant poverty for many women when their husbands passed away. Social Security recognized these challenges and have implemented several changes to the system to help women avoid poverty. Completely New Policies Mean More People Doing Roth IRA Conversions In 2010 As we near the end of 2010, countless people have already done Roth IRA conversions, and many others are questioning if a Roth IRA conversion in 2010 is the right move for them. 3 Reasons To Use A Fee Only Financial Planner There are three different types of financial advisors: the commission broker who sells a product for a commission, the fee-based advisor who provides investment management for a percentage of the assets invested, and the fee only financial planner who provides a comprehensive financial plan for an hourly fee. Using Government Loans So That You Can Upgrade And Improve Your House. Being on the property ladder whether renting or owning your own home it can be a very expensive ordeal. Find Out Tips On How To Apply For Social Security If you areapproaching retirement, you are probably already looking into how to apply for Social Security benefits. Generally, you can apply once you are within 120 days of your 62nd birthday. There are several things you should know to make the application process as smooth as possible. About Social Security Impairment: What You Must Know Prior To Filing For Handicap Benefits Most people think of retirement when they hear Social Security, however Social Security provides benefits to people who are disabled as well. The list of requirements that must be met for Social Security disability benefits is pretty long, and many people don't meet those requirements. |
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