Ask Liz Weston

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Social Security

Q&A: Should a spouse start Social Security now or later?

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Dear Liz: I waited until age 70 to start collecting Social Security. My wife turns 65 this year so her full retirement age is 67. Can she start collecting Social Security benefits now based on my benefit or should we wait until her full retirement age?

Answer: If she applies for Social Security now, she would be “deemed” to be applying for both her own benefit and her spousal benefit and given the larger of the two. She would not be allowed to switch to the other benefit later.

Most people are better off waiting at least until their full retirement age to apply, and many will maximize their lifetime benefits by delaying until age 70. Her mileage may vary, of course, so it’s worth using a Social Security claiming calculator and consider getting advice from an objective source, such as a fee-only financial advisor.

Q&A: Timing a Social Security application

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Dear Liz: I know you work to maximize people’s money. I had a thought about the quality of life with Social Security. I took it at 65, which was then full retirement age. I was fully employed and did not need it to live. However, the extra money allowed us the opportunity to travel to all seven continents, help our kids with debts and down payments, and generally enjoy things with the extra cash. Now the full retirement age is 67, so there are fewer years between full retirement age and when benefits max out at 70. But the difference could still be enough for that motor home or world cruise.

Answer: All financial planning requires a balance between current and future spending. If you spend too much in the early years, you may not have enough to make it through the later ones. Retirement planning is further complicated by the fact that we don’t know how long we’ll live or how our health will hold up. We can delay spending so long that we’re no longer able to do the things we want to do, such as travel.

Still, the fact remains that when one spouse dies, one Social Security check goes away. That can lead to a devastating drop in income for the survivor. Because the survivor receives the larger of the two benefits, and may have to live on that amount for years, it almost always makes sense for the higher earner to delay filing as long as possible.

Q&A: Survivor benefits from spouse’s higher Social Security check

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Dear Liz: My Social Security is much higher than my husband’s. He started taking his at 62 and I started at my full retirement age of 67. If I die before him, can he start taking my Social Security at some reduced rate? My current payment before any Medicare premiums is about $3,700 and his is about $1,700.

Answer: If your husband has reached his own full retirement age by the time you die, his survivor benefit would equal 100% of what you were receiving. The survivor benefit would not be reduced because he started his own benefit early.

If you should die before he reaches full retirement age and he starts survivor benefits, the amount would be reduced for the early start.

Q&A: Should retired teacher return to work?

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Dear Liz: I am a retired special education teacher who receives a government pension. The recent law change now permits me to also receive Social Security. I have 38 of the 40 credits required in order to qualify. Am I better off getting a job to earn those two credits? Another teacher explained to me that I can be paid 50% of my husband’s Social Security benefit instead. That would likely be greater than my own Social Security benefit. We would both wait until we are 70 to collect Social Security.

Answer: The Social Security Fairness Act did away with the windfall elimination provision and the government pension offset, two rules that reduced Social Security benefits for people receiving pensions from jobs that didn’t pay into Social Security.

As you’ve noted, to qualify for your own benefit you would need 40 quarterly credits or 10 years of work history at jobs that paid into Social Security. If your credits were earned decades ago at low-paying jobs, then your spousal benefit might well be larger than your own retirement benefit.

Your spousal benefit can be up to 50% of your husband’s benefit at his full retirement age. Spousal benefits are reduced if you start before your own full retirement age, which is presumably 67, but won’t be increased if you wait beyond that age. Your husband must be receiving his own benefit before you can get a spousal benefit.

The rules can be complex so you’ll want to educate yourself thoroughly and consider consulting a financial planner to figure out the best claiming strategy.

Q&A: Claiming Social Security when the higher earner is younger

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Dear Liz: I am three years younger than my spouse. I have been the primary breadwinner with significantly higher earnings over our 31 years of marriage as he was a stay-at-home dad for many years. Taking my spousal benefit will be much higher for him than his own, even if he waited until he was 70. Do I have to have filed myself in order for him to be able to claim a spousal benefit, or can he claim it when he turns 67 even if I do not file for another three years (when I turn 67)?

Answer: Your spouse won’t be eligible for a spousal benefit until you apply for your own. He could, however, get his own benefit for a few years and then switch to yours once you apply.

The ability to switch from one benefit to another is typically limited. If you were already receiving your benefit, for example, he wouldn’t be able to choose between his own and a spousal benefit when he applied. He would be “deemed” to be applying for both, and get the larger of the two.

One more thing to consider: Since you’re the higher wage earner, it’s important for you to maximize your own benefit because it’s the one that determines how much the survivor will get. Usually the best course is to wait until your benefit maxes out at age 70, but other factors, including health and potential spousal benefits, should also be factored in. Consider using a Social Security claiming calculator or talking with a financial planner to determine the best strategy for your individual situation.

Q&A: Spousal benefits require “one continuous year” of marriage

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Dear Liz: I want to apply for a benefit based on my spouse’s Social Security but how long do we have to have been married? I was not eligible until the Social Security Fairness Act changed the rules. We have been married for four years in May. I am not receiving Social Security benefits since I worked for over 30 years for the government and do not have enough credits to qualify based on my earnings.

Answer: You typically need to be married for “one continuous year” before applying for a spousal benefit, according to the Social Security Administration.

Had you divorced, the rules would be different. Divorced spousal benefits require the marriage to have lasted at least 10 years, and two years must have passed since the divorce.

For those who don’t know, the Social Security Fairness Act repealed the windfall elimination provision and the government pension offset that reduced or eliminated Social Security benefits for people who received pensions from jobs that didn’t pay into Social Security.

The Social Security Administration says most affected people will see their adjusted payments starting in April. Those who never applied for Social Security because of the old rules can do so now.