Dear Liz: I’ve received multiple conflicting answers from Social Security and hope you can clarify. My husband waited to collect until he was 70 and unfortunately passed away soon afterward. I am 66 and was instructed to apply for survivor benefits because I would be eligible to collect his enhanced benefit at age 66 plus two months. I received an “approval of application” letter in January 2024 and was expecting payment on March 20, but nothing! I went on the SSA.gov website and saw my status was “ineligible due to being employed or still working.” I’m an independent human resources consultant. I finally got through to Social Security on the phone and was told I wouldn’t be able to collect his benefits (which would be higher than mine due to his age and earnings) until I was at full retirement age, 66 plus six months. Is this true?
Answer: Yes. You just got squeezed between two different types of full retirement age.
Many people don’t realize they have two full retirement ages, one for retirement benefits and a slightly younger one for survivor benefits. At 66 and two months, you qualified for your full survivor benefit, meaning that the amount wasn’t reduced because of an early start. However, the earnings test applies because you hadn’t yet reached your full retirement age for retirement benefits. The earnings test reduces your benefit by $1 for every $2 you earn over a certain limit, which in 2024 is $22,320.
The good news is that the earnings test will end when you reach 66 years and six months, and you’ll start receiving your survivor benefit regardless of how much you get paid.
What about the rules surrounding medicare payments if you wait until you are older?
While your SS income goes up approximately 8% per year while you defer, how much does and can your medicare premiums increase during that time? Also if you started collecting SS what are the rules around suspending it and restarting it? How would this affect ones medicare premiums while SS is suspended?
Thanks Glenn
Most people have their Medicare payments deducted from their Social Security checks, so you’ll have to pay your premiums directly if you’re delaying or suspending your application. You can suspend at your full retirement age to earn delayed retirement credits. You can learn more here: https://www.ssa.gov/benefits/retirement/planner/suspend.html
You can find the answer to many Medicare questions in its excellent booklet, Medicare and You.