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Liz Weston

How your ex could boost your Social Security

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Katja Rivera, 64, is a massage therapist and theater director in Berkeley, California, who says she’s never earned more than about $30,000 a year. When her two daughters were small, she sometimes earned much less.

But Rivera was married for 10 years to a man who has consistently earned much more than she has. When Rivera retires in a few years, she expects to receive a Social Security check based on her ex’s greater earnings.

Many divorced people don’t realize they can get Social Security benefits derived from their ex-spouse’s work history, says William Meyer, founder of Social Security Solutions, a website that helps people determine when and how to claim Social Security. Those who are aware of the benefits often misunderstand crucial details and can make decisions that cost them tens of thousands of dollars over their lifetimes, he says.

In my latest for the Associated Press, learn how your ex could boost your Social Security.

This week’s money news

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This week’s top story: Smart Money podcast on how to leverage inflation for your benefit. In other news: Justice department sues to block JetBlue, Spirit merger, 3 tax credits not to miss when you file this year, and 3 ways to get your income and other money faster.

Smart Money Podcast: How to Leverage Inflation for Your Benefit
In this week’s episode, we’re sharing NerdWallet’s recent webinar, which was about inflation.

Justice Department Sues to Block JetBlue, Spirit Merger
On Tuesday, the Justice Department sued to block JetBlue Airways from taking over Spirit Airlines in a $3.8 billion deal.

Don’t Miss These 3 Tax Credits When You File This Year
Credits are a more powerful tax-saving tool than deductions, and common programs, such as the earned income tax credit, can save you thousands.

3 Ways to Get Your Income and Other Money Faster
To get money faster, use early direct deposit, Zelle or instant cash-out on Venmo or Cash App. But availability varies.

5 ways to deal with money envy

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If you’ve ever scrolled through social media posts only to be gripped with envy when you see a friend posing in front of their beautiful house or enjoying themselves at a luxurious resort, then you understand how easy it is to want what other people have. Financial envy is real, and sometimes it can be ugly.

“Financial envy is absolutely normal. It’s part of the human condition,” says Yvonne Hampton, who holds a doctorate in personal financial planning and runs a financial therapy practice in the Kansas City, Missouri, area.

And it’s not necessarily a bad thing, she adds. “It’s an opportunity to dig more deeply internally about why we have that feeling so we can work through it and be happier in our own lives.”

In Kimberly Palmer’s latest for the Associated Press, learn five steps to take to deal with money envy.

This week’s money news

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This week’s top story: Smart Money podcast on the tax 2023. In other news: In March, mortgage rates will have little reason to fall, what you should do with savings if there’s a recession, and why a new-construction home may cost less than you expect.

Smart Money: The Tax Episode 2023
This week’s episode starts with a conversation about how to know if you can file your taxes for free.

In March, Mortgage Rates Will Have Little Reason to Fall
There’s not much room for mortgage rates to fall unless inflation slows down.

What Should I Do With My Savings if There’s a Recession?
One of the best things you can do to prepare for a recession is build your emergency fund.

Why a New-Construction Home May Cost Less Than You Expect
Homebuilders are reducing prices and offering incentives, so buyers should reconsider newly built dwellings.

Q&A: Retirees and disability benefits

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Dear Liz: I have a few simple questions about disability, but have been getting different answers from different advisors. Even the Social Security site has different answers. My wife, a nurse, is 71 and has been working for more than 45 years. She is receiving Social Security benefits, starting when she was 70. She has been working in the office, with little patient contact, for 2½ days weekly for a few years with a salary of just over $50,000. She has progressive neuromuscular pain, with significant pain and discomfort in the right upper leg with radiation. It affects her most when she is sitting, which is how she performs her job. She has seen multiple specialists. She does have various meds for pain, but they cloud her thinking, and she doesn’t want that to affect her work. She is missing more and more time. Is she eligible for disability? If so, can she apply while she is still working, or does she need to have stopped completely? Will her Social Security affect or be affected by her disability? Is there a rough estimate as to the disability payments she may get if she is eligible?

Answer: There is nothing simple about Social Security’s disability benefit program. In general, though, it’s meant to provide a subsistence level of income for people younger than retirement age who can’t work. The average monthly Social Security disability payment is less than $1,500 a month. Benefits are granted only to people who are totally disabled, meaning they can’t work and their condition has lasted or is expected to last at least a year or result in death.

Social Security disability payments aren’t designed to supplement retirement benefits. Once a disabled person reaches their full retirement age, which is currently between 66 and 67, a Social Security disability benefit converts to a retirement benefit, says Christopher Lanfranca, a senior retirement analyst with Social Security Solutions, a claiming strategies site. Someone who applies for disability benefits past full retirement age probably would be given retirement benefits instead.

Adjusting to a $50,000 drop in income could be tough. Consider consulting a fee-only financial planner or accredited financial counselor who can review your financial situation and offer suggestions.

Q&A: Lost retirement accounts are a growing problem. How to track down yours

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Dear Liz: I applied for and received Social Security widow’s benefits from my deceased ex-husband. Social Security notified me that my ex-husband had a profit-sharing plan that could have beneficiary money. I have tried to find out the correct people to talk to, but the original employer has changed hands a few times. I spoke to the financial services company that handles retirement plans for the current iteration, but they had no record of my ex-husband’s account. Do you have any ideas of people to talk to [in order to] find out if there is a beneficiary for his account?

Answer: Lost retirement accounts are unfortunately a common issue. Financial services company Capitalize estimated in 2021 that 24.3 million 401(k) accounts, with an average balance of $55,400, had been left behind by job changers, with the total rising year after year. Leaving an account with a former employer isn’t a guarantee the money will be forgotten, but it does increase the odds. Most people are better off rolling an old account into a new employer’s plan or an IRA.

There’s no national database for unclaimed retirement accounts, but there are a few places you can look. Companies with employee retirement plans are required to file a Form 5500 annually with the IRS, and these forms have contact information that may be helpful. You can try searching the U.S. Department of Labor’s site for the forms at efast.dol.gov. Another option is creating a free account at FreeErisa, which may help you find older plans. The Department of Labor also has an abandoned plan database at askebsa.dol.gov/AbandonedPlanSearch.

Your next step might be checking the National Registry of Unclaimed Retirement Benefits at unclaimedretirementbenefits.com. This database is run by a company that processes retirement plan distributions. Another place to try is the National Assn. of Unclaimed Property Administrators’ database at unclaimed.org.