Top 10 Social Security Questions Answered
Social Security is a rather complex retirement program, and there are plenty of rules, features, and other things to know. Learn how to make the smart decisions to increase your Social Security earnings.
1-When is the best time to collect Social Security?
This is a complex question. I have devoted an entire article to it, which you can read here: When Is the Best Time to Take Social Security?
2-How much will I collect from Social Security?
This is a very common question and it’s easy to find the answer. Create an account at https://www.ssa.gov/myaccount/ and look up how much you’ll receive if you retire at 62, 67, or 70.
3-If I didn’t contribute much to Social Security, can I get Social Security benefits through my spouse?
Spousal benefits are designed to provide retirement benefits for people who didn't work or earned significantly less than their spouse throughout their lifetime. People who were stay-at-home parents, for example, are common recipients of spousal benefits.
You can receive Social Security spousal benefits if:
You are at least 62 years old.
Your spouse is currently receiving Social Security benefits. You cannot receive spousal benefits until your spouse starts collecting Social Security.
You are currently married.
4-How much can I collect in Social Security spousal benefits?
You are eligible to receive social security benefits that are equal to 50% of your spouse's benefit at Full Retirement Age (age 67 if born after 1960). You cannot receive both your Social Security benefit and 50% of your spouse’s. You will receive whichever is greater.
If you’re eligible to receive Social Security benefits on your own record, Social Security will pay that amount. If your Social Security benefits as a spouse are higher than your own retirement benefits, you will get the higher spousal benefit.
For example, Sandy qualifies for a Social Security benefit of $1,000 a month and a spouse’s benefit of $1,250 (50% of her spouse’s benefit at Full Retirement Age). At her Full Retirement Age, she will receive the higher amount of $1,250.
5-When can I start collecting Spousal Benefits?
If you are 62 or older, you can start collecting spousal benefits as soon as your spouse starts collecting Social Security. However, if you start collecting Social Security before your Full Retirement Age (usually 67), you will get less than the 50% of your spouse’s Full Retirement Age benefit. For example, if Mary’s husband Stan would receive $1,000 monthly if he started collecting Social Security at 67, then when Mary was 67 she could start collecting 50% of $1,000, or $500 per month. If Stan was already collecting Social Security and Mary wanted to start at 62, she would only get 35% of $1,000 or $350 per month. For more info, see this reduction of spousal benefits chart.
6-What can I expect if I didn’t contribute much to Social Security and I’m divorced?
Good news. You are eligible to receive up to 50% of your ex-spouse’s Full Retirement Age Social Security benefit if you meet the following criteria:
You were married for 10 years or more.
You did not remarry.
If 50% of your ex-spouse’s Full Retirement Age (usually 67) Social Security benefit is more than the Social Security benefit that you are eligible for, then you can apply to receive the higher amount. You don’t need to talk to your ex-spouse. It doesn’t matter if he remarried. It doesn’t reduce his Social Security benefit or his current wife’s Social Security benefit. The same rules apply as a married couple except that your ex-spouse does not need to have already started collecting Social Security. If you are divorced and expect to receive spousal benefits, there is no advantage to waiting to collect after your Full Retirement Age (usually 67). You won't receive increased benefits by waiting past your Full Retirement Age (usually 67).
7-If my spouse passes away, will I get an increase in Social Security?
Widows are due between 71% (at age 60) and 100% (at full retirement age) of what the husband was getting before he died. My mother was getting $1,000 a month in Social Security. My father was getting $1,500 a month in Social Security. When he passed away, my mother started receiving his Social Security benefit of $1,500 per month.
8-If my ex-spouse passes away, will I get an increase in Social Security?
Generally, the same payment rules apply to divorced wives and widows as to current wives and widows. That means most divorced women collect their own Social Security while the ex is alive, but can apply for higher widow’s rates when he dies.
9-If I work while collecting Social Security, will I be penalized?
If you are younger than Full Retirement Age (usually 67) and earn more than the yearly earnings limit, Social Security may reduce your benefit amount. If you are under Full Retirement Age for the entire year, Social Security will deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2024, the limit is $22,320.
When you reach Full Retirement Age (usually 67), your earnings no longer reduce your benefits, no matter how much you earn.
10-Will withdrawals from my Individual Retirement Account (IRA) affect my Social Security benefits?
Social Security does not count pension payments; annuities; withdrawals from your IRA, 403(b), 401(k); or the interest or dividends from your savings and investments as earnings. They will not lower your Social Security retirement benefits.
As you can see, the rules around Social Security are complex. If you are planning on collecting spousal benefits I suggest you schedule a meeting with your local Social Security Administration Contact to understand the best time to coordinate and start collecting Social Security for you and your spouse.
Check out my resources page for links for Social Security Resources.
NOT FINANCIAL ADVICE
The information contained in this article is for informational purposes only and shall not be understood or construed as financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be.
