A Few Vital Points Which You Should Know About Social Security Spouse Benefits
When most 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, therefore when you're planning for retirement, it's crucial to think about the fact that you or your spouse might collect Social Security survivor benefits or spousal benefits at some points in their life.
In this article, we are gonna discuss the basics of Social Security spousal benefits.
Generally, a married person could get a spousal benefit equal to half of her husband's basic benefit, also known as the PIA (primary insurance amount).
Social Security spouse benefits usually come into play when one spouse takes time away from work to raise a family, and therefore has very 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 be eligible for Social Security on her own, then her credit will be figured first. If it's less than her spouse's benefit, she will receive her benefit plus an adjustment to equal half of her husband's primary benefit.
When you should 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 more earning spouse is eligible and has applied for benefits.
It does not good for the lower earning spouse to wait beyond her full retirement age to apply for spousal benefits because the spousal benefit will not earn credits beyond the full retirement age. Thus, spouses applying for the spousal benefit should do so as soon as they reach complete retirement age.
How Early Retirement Impacts The Spouse Benefit:
Spouses who apply for the spousal benefit before she is complete retirement age will receive a reduced benefit just 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 the age of 62 and switches to her own benefit at full retirement age.
Other Issues:
Persons who begin collecting retirement benefits before full retirement age can only earn up to a certain amount before they have 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 require to pay back $1 for each $2 you earned over the limit.
This earnings test applies to spousal & survivor benefits and also retirement benefits, so if you expect to work before you reach full retirement age, you should delay your retirement and spousal benefits.
In this article, I have referred to the wife as the lower earning spouse out of simplicity. But, 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, and the higher or lower earning spouse.
Present Situation About 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.
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?
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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.
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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.
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Wish To Acquire A Social Security Cost Of Living Increase-Read This
A cost-of-living increase is basically a reassessment of the average amount of money that a person needs in order to survive. Cost of living increases are often provided by employers to employees to make sure that people's incomes are substantial enough for them to meet the basic costs of living.
In this article, we are gonna discuss the basics of Social Security spousal benefits.
Generally, a married person could get a spousal benefit equal to half of her husband's basic benefit, also known as the PIA (primary insurance amount).
Social Security spouse benefits usually come into play when one spouse takes time away from work to raise a family, and therefore has very 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 be eligible for Social Security on her own, then her credit will be figured first. If it's less than her spouse's benefit, she will receive her benefit plus an adjustment to equal half of her husband's primary benefit.
When you should 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 more earning spouse is eligible and has applied for benefits.
It does not good for the lower earning spouse to wait beyond her full retirement age to apply for spousal benefits because the spousal benefit will not earn credits beyond the full retirement age. Thus, spouses applying for the spousal benefit should do so as soon as they reach complete retirement age.
How Early Retirement Impacts The Spouse Benefit:
Spouses who apply for the spousal benefit before she is complete retirement age will receive a reduced benefit just 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 the age of 62 and switches to her own benefit at full retirement age.
Other Issues:
Persons who begin collecting retirement benefits before full retirement age can only earn up to a certain amount before they have 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 require to pay back $1 for each $2 you earned over the limit.
This earnings test applies to spousal & survivor benefits and also retirement benefits, so if you expect to work before you reach full retirement age, you should delay your retirement and spousal benefits.
In this article, I have referred to the wife as the lower earning spouse out of simplicity. But, 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, and the higher or lower earning spouse.
Present Situation About 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.
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?
Brand New Guidelines Suggest Much More Individuals Doing Roth IRA Conversions In 2010
As we near the end of 2010, countless people have already done Roth IRA conversions, and many others are questioning if a Roth IRA conversion in 2010 is the right move for them.
Tips On How To Request 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 Could Help Monetarily 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.
How To Enhance Your Credit Check Score In 5 Straightforward Steps
Having a good credit check score is an absolute must in today's lending environment. In this lagging economic environment, your credit check score is certainly more important than ever.
On The Subject Of Social Security Disability: What You Must Understand Before Filing For Disability Benefits
Most people think of retirement when they hear Social Security, however Social Security provides benefits to people who are disabled as well. The list of requirements that must be met for Social Security disability benefits is pretty long, and many people don't meet those requirements.
Wish To Acquire A Social Security Cost Of Living Increase-Read This
A cost-of-living increase is basically a reassessment of the average amount of money that a person needs in order to survive. Cost of living increases are often provided by employers to employees to make sure that people's incomes are substantial enough for them to meet the basic costs of living.
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