A Few Significant Facts Which You Should Know About Social Security Spouse Benefits
When most of the people think about Social Security, they usually think of retirement benefits. But about 1/5 of all Social Security benefits are spousal or survivor benefits, therefore when you're planning for retirement, it is vital to consider the fact that you or your spouse might get Social Security survivor benefits or spousal benefits at few points in their life.
Here, we're gonna discuss the fundamentals of Social Security spousal benefits.
Basically, a married person can get a spousal benefit equal to half of her husband's basic benefit, also labeled the PIA (primary insurance amount).
Social Security spouse benefits generally come into play when a spouse takes time away from work to raise a family, and thus has very little or no earnings.
Calculating the Spousal Benefit:
The spousal benefit is in fact a combination of both spouses' benefits. If a married person has sufficient credits to qualify for Social Security on her own, then her credit will be figured first. If it is lower than her spouse's benefit, she will get her benefit together with an adjustment to equal half of her husband's primary benefit.
When you should Start the Spousal Benefit:
You could apply for the spousal benefit as early as age 62, as long as the working or higher earning spouse is eligible and has applied for benefits.
It does not good for the lower earning spouse to wait beyond her complete retirement age to apply for spousal benefits as the spousal benefit won't earn credits beyond the complete retirement age. Thus, spouses applying for the spousal benefit should do so when they reach full retirement age.
How Early Retirement Affects The Spouse Benefit:
Spouses who apply for the spousal benefit before she is complete retirement age will get a reduced benefit exactly like she would if she applied for her own Social Security benefit before complete retirement age. This reduced benefit is permanent, even though she takes her spousal benefit at the age of 62 and switches to her own benefit at full retirement age.
Some other Considerations:
Individuals who begin collecting retirement benefits before complete retirement age can just earn up to a definite amount before they've to pay back part or all of their Social Security benefits. In '09, that amount is $14,160. If you earn more than $14,160, you need to pay back $1 for every $2 you earned over the limit.
This earnings test applies to spousal and survivor benefits and also retirement benefits, so if you expect to work before you reach complete retirement age, you must delay your retirement and spousal benefits.
In this article, I've referred to the wife as the lower earning spouse out of convenience. But, in today's world, it's not uncommon for the wife to be the higher earning spouse. The great news is that Social Security is gender neutral, so the Social Security spouse benefits can apply to the wife or husband, as well as the higher or lower earning spouse.
Social Security Spousal Benefits: One More Key To The Social Security Decision
Can a spouse collect on her husband's social security if she reaches retirement age before her husband? No. In order for a wife to collect Social Security benefits on her husband's earnings the following requirements must be met:
How Are Social Security Benefits Calculated? Some Points And Factors Having Effect On The Benefits
One of the most popular Social Security questions that I hear from baby boomers getting ready to retire is "how are Social Security benefits calculated?" This is an important question because it could affect how long you need to work, whether you should continue to work during your retirement years
Have You Planned To Start Saving For Retirement?
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.
Some Of The Key Exceptional Roth IRA Withdrawal Rules That May Help 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.
Tips To Apply For Social Security Benefits
Social Security was originally created to provide retirement benefits to workers, but the program has grown tremendously and now Social Security provides disability benefits, death benefits and other family benefits in addition to retirement benefits.
Social Security Death Benefits Can Certainly Help Financially Once Husband Or Wife Or Other Family Member Has Passed Away
Qualifying relatives of individuals who have passed away can receive assistance from social security death benefits. The payments provided vary and depend on a number of things such as the payments that have been made to social security as well as the relationship of the relative to the individual.
Why Women Require To Know Regarding Social Security Spouse And Survivor Benefits
When Social Security was established most women did not work. Lower or no earnings combined with a longer life span meant poverty for many women when their husbands passed away. Social Security recognized these challenges and have implemented several changes to the system to help women avoid poverty.
Three Ways A Financial Planner Can Help You Attain Your Financial Objectives
Many people wonder exactly what a financial planner does, and how they can help you. Here are just three ways a financial planner can help you achieve your financial dreams and goals.