Get smart with your money
Everything you think you know about Social Security is probably wrong.
The system isn’t “running out of money.” It’s not going bankrupt. And the chances are quite good that millennials will receive benefits from Social Security — although half of them don’t believe it, according to a 2014 Pew Research Center study.
Not understanding how Social Security works can be hugely detrimental to your future retirement. In my latest for NerdWallet, why it’s important to act instead of panicking.
Dear Liz: After death, do ex-spousal Social Security benefits continue?
Answer: Any checks you’re getting from Social Security are supposed to stop when you die. But you’re probably asking what happens after the death of your ex-spouse.
The good news is that you would be eligible for divorced survivor benefits. Instead of receiving a check based on half of what your ex was getting, your payment will be based on the entire check your ex was getting. (With either benefit, the check would be reduced if you started benefits before your own full retirement age.)
Benefits for divorced spouses are available if the marriage lasted at least 10 years. Divorced spousal benefits end if the person remarries, but divorced survivor benefits can continue if the survivor remarries after reaching age 60.
Today’s top story: Companies that help you repay or avoid student loans. Also in the news: Solutions to your retirement fund shortfall, debunking Social Security myths, and why Walmart is suing Visa.
6 Companies That Help You Repay or Avoid Student Loans
Alternative options.
10 Solutions to Your Retirement Fund Shortfall
There’s still time to catch up.
Debunking 3 Big Myths About Social Security
Getting to the truth.
Why Walmart is suing Visa, and what it means for your credit cards
Safety first.
Today’s top story: Smart things to do with your tax refund. Also in the news: New options for payday loan borrowers, how to build an emergency fund on a low income, and how to decide when to claim Social Security.
Smart Things To Do With Your Tax Refund
Putting your refund to good use.
A New Option for Payday Loan Borrowers
Borrowers in California and Texas may have better options.
Build Your Emergency Fund On a Low Income With a Simple Bill Tweak
A slight tweak in how you pay your bills could save the day.
3 fast facts that can help you decide when to claim Social Security
Making the best decision for your retirement.
Dear Liz: I worked enough in private industry to qualify for Social Security benefits, but then worked for the state and did not contribute to Social Security for another 20 years. So, I will have a state pension at my current salary as well as Social Security representing my former salary, which was about one-third of what I’m making now. My question is, would it be of value to retire early and return to private industry for a few years?
Answer: Your Social Security benefit is likely to be reduced because you’re getting a pension from a job that didn’t pay into Social Security. This is known as the windfall elimination provision, and you can learn more about it on the Social Security website.
You can avoid the provision if you had 30 years or more of “substantial earnings” (which varies by year but was at least $22,050 in 2015) from jobs that paid into Social Security.
It probably wouldn’t make much sense to quit a well-paying job with a presumably generous pension to try to boost a much smaller Social Security payout. But a fee-only financial planner could run the numbers for you and explain your various options.
Dear Liz: A friend was told by Social Security that she could not collect spousal benefits on her ex-husband’s work record because she did not have his Social Security number. How can I help her find it?
Answer: Your friend may have run into a new Social Security employee, or at least one who is not well-informed. Social Security says on its website that people who qualify for divorced spousal benefits do not need their exes’ Social Security number as long as they can provide enough identifying information for the agency to locate his record. She does need to have a marriage certificate and divorce decree along with her own birth certificate.
To qualify for divorced spousal benefits, the marriage must have lasted 10 years and your friend must currently be unmarried