Immediately’s Social Safety column addresses questions on whether or not child-in-care spousal advantages outing, taking retirement advantages earlier than spousal advantages and what results dwelling and dealing outdoors the US may need on Social Safety advantages. Larry Kotlikoff is a Professor of Economics at Boston College and the founder and president of Financial Safety Planning, Inc.
See extra Ask Larry answers here.
Have Social Safety questions of your individual you’d like answered? Ask Larry about Social Security here.
Is There Actually An Age Restrict On Social Safety’s Baby-In-Care Spousal Profit?
Hello Larry, I will probably be 66 quickly and my spouse will probably be 63 even sooner. I used your software program and itt mentioned she ought to apply for her retirement advantages now for herself and youngster advantages our 11 yr outdated and that I ought to apply for child-in-care spousal advantages now and let my retirement advantages develop till I’m 70.
For plenty of years my spouse stayed residence with the children and I earn about 4 instances what she does. I referred to as SSA to use, they usually mentioned child-in-care spousal advantages are just for youthful spouses (underneath 62) and I can’t try this.
They mentioned I can solely apply for normal spouses advantages or retirement advantages by myself file. Your ebook and software program says the alternative. What ought to we do? Thanks, Peter
Hello Peter, What you have been apparently instructed by a Social Safety worker isn’t true.
To begin with, staff of the Social Safety Administration (SSA) cannot legally forestall somebody from making use of for any kind of profit that the company administers. If somebody applies for a sort of profit for which they do not qualify, it is then SSA’s accountability to disallow the particular person’s declare. That will then give the disallowed claimant enchantment rights.
Extra particularly to your scenario although, we have been assured by excessive rating SSA officers that there isn’t any higher age restrict at which an individual can qualify for child-in-care spousal advantages.
And since deeming doesn’t routinely apply to purposes for child-in-care spousal advantages, you must be capable of apply for child-in-care spousal advantages now whereas permitting your individual Social Safety retirement profit fee to develop till you attain 70.
So there is no motive you may’t apply for child-in-care spousal advantages, no matter your present age.
One factor you will need to be sure you do although, is so as to add an announcement within the remarks of your utility stating: “I’m proscribing the scope of this utility to youngster in care spousal advantages solely. I want to exclude my very own Social Safety retirement advantages from the scope of this utility.”
Then, shortly earlier than turning 70, you will have to file one other utility so as to declare your individual Social Safety retirement advantages. Finest, Larry
If I File For My Personal Advantages Now Will I Be In a position To Get Spousal Advantages When My Husband Applies For His Advantages?
Hello Larry, I used to be born in 1959. My husband was born in 1963. If I begin taking my Social Safety of $950 now, will I be capable of get spousal advantages when my husband turns 70? His earnings is way larger than mine. Thanks, Helen
Hello Helen, Primarily based on the quantities said in your query you’d possible qualify for a minimum of some spousal advantages when your husband begins drawing his advantages, however the quantity of your spousal profit is perhaps considerably lower than you suppose. When you file to your personal Social Safety retirement advantages, these advantages proceed for all times. You possibly can’t select to change from drawing your individual advantages to drawing a spousal profit as an alternative.
Nonetheless, you might begin drawing your individual advantages every now and then file for a partial, or extra, spousal profit when your husband claims his advantages, however you will solely qualify for an extra spousal profit in case your husband’s major insurance coverage quantity (PIA) is greater than twice as a lot as your individual PIA. An individual’s PIA is the same as their Social Safety retirement profit fee if they begin drawing their advantages at full retirement age (FRA).
For those who begin drawing your retirement advantages previous to your full retirement age (FRA), the ensuing discount for age that applies to your profit fee will proceed for so long as each you and your husband are nonetheless dwelling. That is true even in case you later qualify for an extra spousal profit.
It sounds such as you and your husband could need to think about using my firm’s software program — Maximize My Social Security or MaxiFi Planner — to make sure your family receives the best lifetime advantages. Social Safety calculators supplied by different firms or non-profits could present correct ideas in the event that they have been constructed with excessive care. Our software program can even affirm your appropriate profit quantity, guaranteeing you are not being paid too little or an excessive amount of, which may result in potential clawbacks on account of Social Safety’s overpayment to you. Finest, Larry
How Would Shifting To Sweden Have an effect on The Calculation Of My US Social Safety Retirement Profit?
Hello Larry, I’m a US citizen and have paid US Social Safety taxes for 25 years. I lived in Sweden for 15 years, throughout which era I had no US taxable earnings and paid taxes to Sweden on my Swedish taxable earnings. I presently reside within the US and solely have US taxable earnings. I plan to attend eight years after which apply for US Social Safety retirement advantages at 70.
If I transfer to Sweden earlier than I apply for US Social Safety retirement advantages, how would the calculation of my profit be affected? Additionally, how would the long run calculation of my surviving partner’s who can also be US citizen, profit primarily based on my file be affected? Thanks, Ralph
Hello Ralph, Dwelling in Sweden would not adversely have an effect on your US Social Safety advantages, however in case you obtain a pension primarily based in your work in Sweden, your US Social Safety retirement profit fee could possibly be lowered because of the Windfall Elimination Provision (WEP).
The WEP solely applies to retirement and incapacity (SSDI) advantages although, so a pension from Sweden would not adversely have an effect on any spousal or survivor advantages that you simply qualify for from the US Moreover, if the WEP lowers your US Social Safety retirement profit fee, that discount could be eliminated within the occasion of your demise.
So if anybody qualifies for survivor advantages out of your US Social Safety file, their survivor fee will not be diminished on account of any WEP discount that had beforehand been utilized to your retirement profit fee. Finest, Larry