Little Known Social Security Benefits Can Increase Income
Many people think that Social Security is only a retirement benefits program where claimants can go to file either on reaching age 62 for early retirement, age 66 for full retirement benefits and at age 70 for the most expansive benefit on their own work record.
If this is your view of Social Security, you may be missing out on benefits to which you otherwise would be entitled. Here are just a few options available under Social Security. There are more.
You Might Claim on Benefits Based on Your Spouse’s Earnings. Workers who pay into the system generally know that they can claim benefits on retirement on their own work record. What many do not know is that they might also be able to claim on the earnings record of their spouse at 50%. One disappointing fact I learned in working in the elder law field is that many women, in particular, on retirement, when claiming on their own work record would receive less than half of what they would receive on their husband’s. The good news is that they have the option of claiming 50% of their spouse’s benefit instead. This is true whether or not they live together at the time and it does not reduce what the higher earning spouse would receive.
You Might Claim on Your Ex-Spouse’s Benefit. If a marriage lasted at least ten years, a divorced spouse might claim on the ex-spouse’s earnings record. These benefits do not affect the benefits of the contributing spouse. There are limitations. If the former spouse is not collecting Social Security retirement benefits, the divorced spouse can collect benefits only after two years have elapsed from the date of the divorce and the contributing spouse must be at least age 62 and fully insured even if he is not receiving benefits. The dependent ex-spouse must be at least age 62 and unmarried. Here are the child support attorneys that you need help from in case you are splitting and want the best for your kids. But in case, if your divorced spouse wrongly accuses you of abuse, you can contact a lawyer to defense against criminal charges to protect your rights.
I remember some time ago reviewing a budget with a woman who was interested in moving to a continuing care retirement community and needed to assure her monthly income. She was pleasantly surprised to learn that she could claim Social Security on one-half of her former spouse’s benefit. This increase tipped the scales to allow her to make the move.
Social Security Disability Is An Option for Younger Disabled Workers. Before retirement age, workers who are disabled may claim for Social Security Disability based on their earnings record. They need to have earned enough credits by working and they need to be determined to be unable to engage in substantial gainful employment for at least a year or have a condition that could result in death. Social Security Disability is
not a welfare program. The disabled worker can have assets. The determining factor is the inability to work. After two years on Social Security Disability, the recipient can receive Medicare for health insurance purposes. On reaching retirement age, the benefits are converted to retirement benefits.
There Are Death Benefits Under Social Security. Where a spouse dies who was the higher wage earner, the surviving spouse may move up to his benefit although she does not keep her own in addition.
Specifics would need to be consulted in each case but death benefits might include those for widows and widowers age 60 or older, widows or widowers age 50 or older and disabled, widows or widowers at any age if caring for a child under 16 or a disabled child, a child receiving Social Security benefits, children if unmarried and under age 18 or under age 19 but full time students in elementary or secondary school, children 18 or older and severely disabled if the disability began prior to age 22, parents if dependent on the decedent for at least half of their support.
Supplemental Security Income. For those who do not have enough credits in the system and are disabled using the same standard for disability as Social Security Disability, there is a program known as Supplemental Security Income (SSI). Assets must be $2,000 or less and income must be extremely low to qualify.
Considerations Regarding Remarriage. This is not a benefit but a consideration. For any widow or widower considering remarriage, if the spouse by the prior marriage had a higher earnings record than the new spouse, it is beneficial to wait until age 60. Then there is a choice between using the derivative benefits of the first spouse or the new spouse. Just a thought.
For more, listen to “50+ Planning Ahead” a weekly radio program on WCHE 1520 on every Wednesday from 4:30 pm to 5:00 pm with Janet Colliton, Colliton Law Assocs., PC, and Phil McFadden of Home Instead Senior Care.
About the Author Janet Colliton
Esquire, Colliton Law Associates, P.C. Janet Colliton has practiced law for over 38 years, 37 of them in Chester County, Pennsylvania, a suburb of Philadelphia. Her practice, Colliton Law Associates, PC, is limited to elder law, Medicaid, including advice, applications and appeals, and other benefits planning including Veterans benefits, life care and special needs planning, guardianships, retirement, and estate planning and administration.