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Social Security

Q&A: Am I eligible for my ex-husband’s Social Security?

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Dear Liz: My ex-husband and I were married for 10 years. I married again, but am now a widow. I was told I could collect benefits on my prior marriage when my ex-husband passes. But, now that I’m a widow, I am wondering if I’m eligible to collect on my ex-husband’s record, though he is living. I’m currently getting my late husband’s benefit.

Answer: You could be entitled to a divorced spousal benefit based on your ex’s earning’s record. The divorced spousal benefit could be up to half of your ex’s benefit at his full retirement age. You would only collect that amount if it was greater than what you are currently receiving, however. You can call Social Security to check if you’re entitled to a larger benefit.

To recap: Survivor benefits are up to 100% of what the primary worker received at their death, while spousal benefits are up to half of what the (still living) primary worker would receive at full retirement age. Someone who is divorced can be entitled to benefits based on their ex’s’ work records if the marriage lasted at least 10 years.

Q&A: The not-so-hidden costs of claiming Social Security at 62

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Dear Liz: I’ll be 62 next year. I planned to start taking my Social Security of about $2,600 a month and just put that check into an investment account until I retire. However, if I’m going to be taxed $1 for every $2 over $23,000 that I make, then my plan needs to change. Maybe I should wait until 67. I make around $180,000 a year and that should continue until I retire. I loved my plan and am really disappointed that I cannot put it into play.

Answer: Sometimes the things we love aren’t good for us. Your plan would have shortchanged you and possibly your spouse.

You wouldn’t actually pay a 50% tax on your Social Security if you applied at age 62. What you would face is the earnings test, which withholds $1 for every $2 you earn over a certain amount, which is $24,480 in 2026. Given your income, your entire benefit would be withheld.

The earnings test would apply until you reached your full retirement age of 67. At that point, any money that was withheld would be added back into your benefit.

What isn’t added back is the additional money you would have received simply by postponing your application. If you wait, your benefit would grow about 30% between age 62 and 67. After 67, delayed retirement credits boost your benefit by 8% each year you delay until age 70, when your benefit maxes out. In addition, your benefit gets cost-of-living increases beginning at age 62, whether or not you’ve applied.

Those are guaranteed returns, by the way. Other investment returns are not. You could make more in the stock market, but you also could make less or lose money.

If you’re married and the higher earner, an early start would also stunt the survivor’s benefit. The effect can be so dramatic on the survivor’s finances that financial planners typically advise the higher earner to wait as long as possible to apply.

Q&A: Could my husband’s ex claim his Social Security?

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Dear Liz: My question is regarding spousal Social Security. My husband and I have been married for close to 20 years. My husband’s first wife has never remarried. Could she be claiming my husband’s Social Security? If so, without us knowing it? And, how will that affect my Social Security when that time comes? Should mine be less than my husband’s, will I be able to claim my husband’s Social Security?

Answer: Strictly speaking, no one can claim anyone else’s Social Security. But someone can claim benefits based on the earnings record of a spouse or a former spouse under certain circumstances.

Specifically, your husband’s ex could claim a divorced spousal benefit based on your husband’s record, if that amount was greater than her own retirement benefit and the marriage lasted at least 10 years. She could receive up to half the amount he had earned as of his full retirement age. He does not need to be receiving his own benefit for her to receive a divorced spousal benefit, as long as he’s at least 62. He typically would not be notified that she had applied.

Claiming such a benefit doesn’t affect the amount your husband gets or that you might be entitled to. Your spousal benefit would also be up to 50% of the amount your husband had earned as of his full retirement age. For you to get a spousal benefit, however, your husband must have applied for his own benefit.

Q&A: Should I delay my pension payments as long as possible?

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Dear Liz: I work for a local government and my job offers a pension as well as a 457 deferred compensation plan. If I delay starting my pension, will it have the same 8% growth that Social Security offers? Is my 457(b) plan much better than 401(k)?

Answer: Government pensions and Social Security both offer guaranteed income for life, but use different formulas for determining benefits.

Social Security is generally based on the worker’s 35 highest-earning years. Recipients can earn an 8% annual boost in their retirement benefit for each year they delay starting after their full retirement age, until benefits max out at age 70.

Pensions, meanwhile, are typically based on a combination of age, final salary and years of service. Delaying retirement typically does increase your benefit, but how much depends on the details of your plan. Many plans offer tools for estimating your future benefits, or you can contact your human resources department.

Your 457(b) plan has much in common with a 401(k). Both allow workers to contribute pretax money through payroll deductions up to certain limits ($24,500 in 2026, with an additional $8,000 catch-up contribution for those 50 and older, plus an additional $11,250 for those 60 to 63). The amount you ultimately get in retirement isn’t guaranteed but depends on how much you contribute and how the investments you choose perform over time.

A major difference between the two types of plans: 401(k)s typically offer some kind of matching funds, while 457(b)s often do not. On the other hand, early withdrawals from a 401(k) are usually penalized, while you can generally withdraw money from a 457(b) penalty-free after you leave your job.

Q&A: How disability income affects survivor benefits

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Dear Liz: My wife and I are essentially the same age (62), high school sweethearts married 44 years. She had a severe stroke at 57 and I became her full-time caregiver. She began receiving Social Security disability benefits about nine months later, at 58. I began taking my Social Security retirement benefits this year. I had a heart attack at 51 and am doubtful I’ll live much past 75 or so. My wife was always the higher-earning spouse so her benefits (equivalent to retiring at 70) are double mine.

First, if my wife passes before I do (which is a toss-up), am I entitled to survivor benefits? Secondly, will my Social Security benefits simply be replaced with the amount my wife currently receives?

Answer: When your wife reaches her full retirement age of 67, her disability benefit will become her retirement benefit. You referenced age 70, when benefits typically max out, but that’s only if they haven’t been started yet.

When one of you dies, the larger of your two benefits will become the survivor’s benefit. The smaller benefit will end.