Well, it’s been a strange week. My inbox is normally crammed with emails from readers. But this week, there has been just a sprinkling of questions. I'd like to think it’s because all of you have been reading my column for years, and maybe also have read my two books about Social Security, and so you’re all now Social Security experts who’ve got no questions left to ask.
But it’s probably because spring has sprung and you’re all out doing odd jobs around the house or working in the yard.
So I thought what I'd do today is dredge up some of the most common questions I get and go over the answers one more time. Those answers are going to be short and to the point, just so I can squeeze in as many questions as I can in the limited space I have.
Q: I’m 62. My husband is 67 and getting Social Security. Can I file for spousal benefits on his record now and save my own until I’m 70?
A: No, you can’t do that. You always must file for your own benefits first. Only after you do that can you look to your husband’s record to see if you can get any additional spousal benefits.
Q: I am 60 and not working. My husband recently died. Can I file for widow’s benefits now and save my own until I am 70?
A: Yes, you can do that. A widow does not have the same restrictions that apply to a spouse with a living husband (as explained in the first Q and A). You can file for widow’s benefits now, and then switch to 100 percent of your own at full retirement age or wait until 70 and get about 130 percent. Or, depending on the money amounts involved, you might be ahead to file for retirement benefits at age 62 (the earliest you can do that), and then at full retirement age, switch to 100 percent widow’s benefits.
Q: If I die, what will my wife get?
A: The answer depends on several factors. But assuming you die well after your full retirement age, and assuming your wife is over her full retirement age when you die, as a general rule she will get what you were getting at the time of death. Quick example. You are 85 and getting $1,800 per month. Your wife is 82 and getting $1,200 per month. When you die, she will keep getting her $1,200, and then she will get an additional $600 in widow’s benefits.
Q: I took my benefits at 70, so I get an extra 32 percent added to my retirement rate. When I die, will my wife’s widow’s benefit be based on my augmented age 70 rate, or on my full retirement rate?
A: It will be based on your age 70 rate. And just to clarify a little further: A benefit paid to a spouse whose husband is still alive is based on his full retirement age rate. But as I just said, a widow’s benefit is based on the age 70 rate (assuming the husband waited until 70 to claim his benefits).
Q: I did not pay into Social Security. I get a teacher’s pension from Texas of $3,500 per month. My husband gets Social Security. He gets $2,200 per month. When he dies, why won’t I get widow’s benefits on his record?
A: If you were getting a Social Security retirement benefit of $3,500 per month, you would not get widow’s benefits because your own benefit would offset anything you would be due as a widow. And the same offset rules apply to non-Social Security pensions like your Texas teacher’s retirement check.
Q: I’m already getting my Social Security but I’m still working. Will my additional income and the taxes I’m paying increase my Social Security check?
A: It depends. Your original benefit was based on your average monthly wage using your highest 35 years of inflation-adjusted earnings. If the earnings you have now are higher than the lowest inflation-adjusted year used in your original computation, the SSA will drop out that lower year, add in the new higher year, and adjust your benefit accordingly. But don’t expect a windfall. Your benefit might go up by maybe $10 to $20 per month for a year of good earnings.
Q: When my father died, why did we have to return his last check?
A: Several rules come into play here. First, Social Security benefits have never been pro-rated. Second, benefits are always paid one month behind. And third, the law says you must live an entire month to be due a Social Security check for that month.
Here is a quick example. John dies on April 24. The Social Security check that comes in May (the payment for April) must be returned.
That’s the downside to the lack of proration. But there are two upsides. One: let’s say John started his benefits when he was 66 and that he turned 66 on June 22. He would get a check for the whole month of June even though he was 66 for only eight days of the month. Two: if John left a widow, she would get widow’s benefits for the whole month of April even though she was a widow for only six days of the month.
Q: We would like to talk to you personally about our Social Security situation. We'd be willing to pay you. Can we please call you to discuss this?
A: I sometimes think I should give up this column-writing gig and go into the business of doing personal Social Security consultations. I bet I could make a lot more money doing that than sitting here in my basement cranking out weekly columns! But I guess I’m just too lazy to start up a consulting business. So I’m sorry, but I just can’t provide personal service, or work on individual Social Security cases.
But for 10 bucks, I can give you the kind of help that might even be better than a personal consultation. Buy my little Social Security guidebook called “Social Security: Simple and Smart.” In that book, you‘ll find 10 fact sheets that cover just about any Social Security situation you might encounter. Another of my books you’d find interesting is called “Social Security: 100 Myths and 100 Facts.” You can find either book at Amazon.com.
