Kiplinger’s recent article asks “Here Are 3 Unique Social Security Benefits–Do You Qualify?” The article provides three facts about Social Security benefits that could have an effect on your retirement decisions.
Social Security benefits withheld because you’re working while receiving benefits early aren’t gone. Claiming Social Security retirement benefits prior to reaching full retirement age, for most Baby Boomers, means a permanent reduction of their benefits. Claiming before age 66 and continuing to work can reduce them even more. However, most people don’t realize that any benefits withheld because they work, aren’t lost forever. Instead, they’re paid back over a number of years, after they hit their full retirement age.
A person electing to take Social Security at age 62, can also keep working. However, they’ll have $1 in withheld for every $2 they earn once they make more than $17,640 in a year. However, once they reach full retirement age, a person’s monthly benefits are recalculated to repay the amount withheld during those working years. Thus, your monthly Social Security check will get bigger.
If you are getting Social Security, young children and your spouse also can collect. Children can get Social Security, if a family breadwinner dies or becomes disabled. Once a person files for Social Security, a spouse younger than 62 and the couple’s young child can also get Social Security benefits. The benefits for the spouse and the young child are based on the full retirement age benefit of the retired worker. However, there’s a maximum amount that each family can receive which typically is between 150% to 180% of the husband’s monthly benefit. However, these benefits don’t go on forever.
After remarriage, widows and widowers can still get Social Security payments. If a husband is considerably older than his wife, he may want to plan for her future. Assuming he passes away first, in addition to inheriting his estate, she can begin collecting survivor benefits from Social Security.
Further, if the wife elects to remarry after turning 60, she isn’t financially penalized. She can continue to collect this amount each month, because Social Security rules allow for survivor benefits to continue, if remarriage takes place after reaching age 60.
Social Security has a lot of nuances that can offer attractive benefits to those who qualify. If your family situation involves death, disability, or the retirement of someone who paid into the Social Security system, make certain that you or your loved ones collect all eligible benefits. Call (305) 443 - 3104 to set up an appointment to discuss this further.
Reference: Kiplinger (September 18, 2019) “Here Are 3 Unique Social Security Benefits – Do You Qualify?”