Economic Security Planning, Inc.
Today's column addresses questions about whether survivor's benefits can be claimed after taking retirement benefits, retirement benefits before spousal benefits and selling land while receiving Social Security disability benefits. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc, which markets Maximize My Social Security and MaxiFi Planner.
See more Ask Larry answers here.
Have Social Security questions of your own you’d like answered? Ask Larry about Social Security here.
Can I Get Social Security Widow's Benefits After Taking Retirement Benefits?
Hi Larry, My husband and I were married in 2013 and he was divorced in 2004. He is 73. If I take my retirement benefits and he passes away, would I able to collect a widow's benefit from his record? He was collecting his Social Security retirement benefit already before we got married. Thanks, Kim
Hi Kim, Potentially, yes. The fact that your husband was previously married would have no bearing on your ability to collect widow's benefits, even if a former spouse(s) of his also qualifies for survivor benefits on his record.
However, if you're already drawing your own retirement benefits when your husband dies, you could only qualify for widow's benefits if your widow's rate is higher than your own benefit rate. If your husband dies before you and you are at least full retirement age (FRA) and drawing your own benefits, you'd basically qualify for the higher of your own benefit rate or your husband's benefit rate. My company's software — Maximize My Social Security or MaxiFi Planner — can help you explore your options given different contingencies such as different maximum ages for each spouse. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry
Can My Wife File For Her Benefits At 62 Then Take Spousal Benefits When She Reaches FRA?
Hi Larry, I was born in October 1953 and plan to take my Social Security retirement benefit in January 2021 at 67 and three months, one year and three months after my FRA. My wife was born in May 1959 and her FRA is 66 and 10 months in April 2026.
Can she take her own Social Security retirement benefit when she turns 62 in May 2021 and then take spousal benefits at her FRA in April 2026? Thanks, James
Hi James, She can't do that. Since your wife was born after 1/1/1954, she'll be deemed to be filing for both her own Social Security retirement benefits and spousal benefits when she applies for either benefit. She could then only be paid essentially the higher of the two benefit rates, and her benefit rate will be reduced for age if she starts drawing prior to full retirement age (FRA).
However, since you were born before 1/2/1954, you would be allowed to apply just for spousal benefits without filing for your own benefits, but you couldn't be paid spousal benefits at least until your wife starts drawing her benefits. As an alternative to the plan you have in mind, you may want to at least consider having your wife file for her benefits at age 62 at which point you could then file just for spousal benefits.
You could then potentially collect spousal benefits while allowing your own benefit rate to grow until you reach age 70. When you reach age 70 you could then switch to drawing your benefits, and your wife could potentially receive additional spousal benefits if 50% of your primary insurance amount (PIA) is higher than her own PIA. This strategy would also likely provide your wife with her highest possible survivor rate if you die before her. Best, Larry
Do I Need To Notify Social Security If I Sell Land That I Own?
Hi Larry, If I buy real estate while on Social Security disability and then turn around and sell it 10 years later, do I need to notify Social Security? Does Social Security look for money to be returned? I have a payee. Thanks, Mary
Hi Mary, Profit from the sale of real estate wouldn't affect Social Security disability (SSDI) benefits unless you're a self-employed realtor, so assuming that you aren't a realtor and what you receive is SSDI then you wouldn't need to notify Social Security if you sell your property. However, if you receive SSI (Supplemental Security Income) then you would need to notify Social Security. SSI is a needs based program, so any change in income or assets can affect SSI payments. Best, Larry
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