At this time’s column addresses questions on whether or not submitting for retirement advantages will imply an finish to spousal advantages, whether or not submitting for divorced spousal advantages at 62 would have an effect on retirement advantages and what occurs to the cash an individual paid into Social Safety after they die. Larry Kotlikoff is a Professor of Economics at Boston College and the founder and president of Financial Safety Planning, Inc, which markets Maximize My Social Safety and MaxiFi Planner.
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Once I File For Social Safety Retirement Advantages, Will I Lose My Spousal Advantages?
Hello Larry, I am age 66 and amassing spousal advantages. I have not filed for my Social Safety retirement advantages but. I’m not retired however I’ve misplaced my job due to the pandemic. I plan to join retirement after I’m 70. Once I retire will I lose my spousal advantages? Thanks, Anna
Hello Anna, Solely individuals born previous to half of/1954 are allowed to use for spousal advantages with out additionally being required to file for their very own retirement advantages on the similar time. They usually can solely achieve this in the event that they file for spousal advantages at full retirement age (FRA) or later.
In the event you’re simply drawing spousal advantages and for those who finally apply on your retirement advantages, you’ll be able to solely be paid the upper of the 2 charges. By the way in which, that might be true even for those who have been receiving survivor advantages as a substitute of spousal advantages. In case your retirement profit charge is larger, your spousal advantages shall be terminated if you begin drawing your retirement advantages. In case your retirement profit is not larger, then there’s most likely no motive you’d need to apply on your personal advantages. In the event you did although, you would be paid your individual charge plus a partial spousal profit charge that might add as much as your larger spousal charge. The 2 advantages would then be mixed into one cost.
Chances are you’ll need to think about using my firm’s software program Maximize My Social Safety or MaxiFi Planner to totally analyze the choices obtainable to you so as to decide your greatest technique for maximizing advantages. Social Safety planning. Social Safety calculators offered by different corporations or non-profits might present correct solutions in the event that they have been constructed with excessive care. Greatest, Larry
If I Gather Divorced Spousal Advantages At 62, Will It Have an effect on My Retirement Advantages Once I Flip 70?
Hello Larry, My ex is 71 and I’m 60. We have been married 13 years. I’ve by no means remarried once more. If I accumulate spousal advantages primarily based on his earnings file at 62 until I flip 70, wouldn’t it have an effect on my retirement advantages after I flip 70? Thanks, Joseph
Hello Joseph, Because you have been born after 1/1/1954, you would by no means file for divorced spousal advantages on a residing ex’s file with out additionally being required to file on your personal retirement advantages on the similar time. So to be clear, so long as your ex continues to be residing, there isn’t any method that you would file only for divorced spousal advantages and permit your individual retirement profit charge to continue to grow.
Solely individuals born previous to half of/1954 are allowed to file for spousal or divorced advantages whereas their partner or ex-spouse resides with out additionally being required to file for their very own advantages on the similar time. So for those who file for advantages at 62, you will solely qualify for basically the upper of your individual profit charge or your divorced spousal charge, and your profit quantity shall be lowered for age. Greatest, Larry
When A Partner Dies, The place Does The Remaining Cash Go If It is Not Used Up?
Hello Larry, what occurs to the cash they paid in Social Safety taxes if a partner dies? Does it get allotted to the survivors? If not, why would not it? Thanks, Charles
Hello Charles, Social Safety is an insurance coverage program designed to assist change revenue misplaced on account of dying, incapacity or previous age. It isn’t a person retirement account that may be handed on to heirs. Any taxes that an individual pays stay within the Social Safety belief fund until and till both that individual or their eligible dependents or survivors meet the necessities for entitlement to Social Safety advantages.
Because it true with most insurance coverage packages, there isn’t any assure that you simply or any any of your kin will ever have the ability to accumulate advantages primarily based in your contributions to this system. Greatest, Larry
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