|
|
Some Vital Points Which You Require To Know About Social Security Spouse Benefits
When most of the people think about Social Security, they naturally think of retirement benefits. However about 1/5 of all Social Security benefits are spousal or survivor benefits, so when you're planning for retirement, it's crucial to consider the fact that you or your spouse may collect Social Security survivor benefits or spousal benefits at few points in their life.
In this article, we are going to discuss the basics of Social Security spousal benefits.
Generally, a married person can receive a spousal benefit equal to half of her husband's basic benefit, also known as the PIA (primary insurance amount).
Social Security spouse benefits generally come into play when one spouse takes time away from work to raise a family, and therefore has little or no earnings.
Calculating the Spousal Benefit:
The spousal benefit is actually a combination of both spouses' benefits. If a married person has adequate credits to qualify for Social Security on her own, then her credit will be calculated first. If it's lower than her spouse's benefit, she will receive her benefit plus an adjustment to equal half of her husband's primary benefit.
When Should You Start the Spousal Benefit:
You can apply for the spousal benefit as early as at the age of 62, as long as the working or higher earning spouse is eligible and has applied for benefits.
It does no good for the lower earning spouse to wait beyond her full retirement age to apply for spousal benefits as the spousal benefit will not earn credits beyond the full retirement age. Therefore, spouses applying for the spousal benefit should do so as soon as they reach complete retirement age.
How Early Retirement Affects The Spouse Benefit:
Spouses who apply for the spousal benefit before she is full retirement age will receive a reduced benefit exactly like she would if she applied for her own Social Security benefit before full retirement age. This reduced benefit is permanent, even if she takes her spousal benefit at age 62 and switches to her own benefit at full retirement age.
Other Issues:
Individuals who start collecting retirement benefits before full retirement age can just earn up to a certain amount before they have to pay back part or all of their Social Security benefits. In 2009, that amount is $14,160. If you earn more than $14,160, you have to pay back $1 for each $2 you earned over the limit.
This earnings test applies to spousal and survivor benefits along with retirement benefits, so if you expect to work before you reach full retirement age, you must delay your retirement and spousal benefits.
In this article, I have referred to the wife as the lower earning spouse out of simplicity. However, in today's world, it's not uncommon for the wife to be the higher earning spouse. The good news is that Social Security is gender neutral, therefore the Social Security spouse benefits can apply to the wife or husband, as well as the higher or lower earning spouse.
Secure Your Retirement Life- Start Saving Today
Getting ready for retirement is a lot harder than it used to be. Companies no longer offer pensions and many are reducing or eliminating matching contributions to 401K plans. In addition, Social Security benefits are expected to be smaller and you may have to wait longer to collect them.
Social Security Retirement Benefits: Recommendations To Help You Make The Most Of Your Social Security Retirement Income
As you get closer to retirement, choosing when to take your Social Security may seem like rolling the dice. There are so many decisions to make, such as:
Social Security Survivor Benefits - What Occurs To Your Social Security Benefits When One Spouse Dies
When Social Security was first established, it only paid retirement income to workers who qualified. It was later amended to include benefits for spouses and survivors, which made it more of a family or insurance plan, instead of just a retirement plan.
Using Government Grants In Order To Upgrade And Improve Your Own Home.
Being on the property ladder whether renting or owning your own home it can be a very expensive ordeal.
A Few Major Exceptional Roth IRA Withdrawal Rules Which May Assist You To Take Money Out Of A Roth IRA
Roth IRAs are governed by the IRS; as such there are many Roth IRA withdrawal rules that must be followed before you take money out of your account. In this article we'll discuss Roth IRA distributions; when they can be taken, when and if they are taxable, when and if penalties might apply.
How Are Financial Planners Compensated? Which Type Of Financial Advisor Is Perfect For Me?
There are many different types of financial planners. Not only are financial advisors compensated differently, but the services they provide vary quite a bit as well. Here is a quick summary of the different types of financial advisors and how they can help you.
3 Main Reasons To Use A Fee-Only Financial Experts
There are three different types of financial advisors: the commission broker who sells a product for a commission, the fee-based advisor who provides investment management for a percentage of the assets invested, and the fee only financial planner who provides a comprehensive financial plan for an hourly fee.
Social Security Benefits: An Effective Discussion On Terms & Conditions To Get The Benefit & Ways To Get After A Family Member's Death
The loss of a family member can be devastating, both emotionally and financially. Social Security is meant to be a survivor program as well as a retirement program. Most people are aware of Social Security retirement benefits, but are you aware that there are Social Security death benefits as well?
Submitting Your Social Security Application: When And How
As you get closer to retirement one of your top questions is probably when and how to submit your Social Security application. Should you apply at age 62 or 66? What are the steps to applying for Social Security once you've decided to start collecting retirement benefits?
|
More Articles
Blogroll
|
