When most of the people think about Social Security, they usually think of retirement benefits. But about 1/5 of all Social Security benefits are spousal or survivor benefits, therefore when you're planning for retirement, it's vital to think about the fact that you or your spouse might collect Social Security survivor benefits or spousal benefits at few points in their life.
Here, we're 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 normally come into play when a spouse takes time away from work to raise a family, and thus 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 sufficient credits to be eligible for Social Security on her own, then her credit will be figured first. If it's lower than her spouse's benefit, she will get her benefit together with 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 since the spousal benefit won't earn credits beyond the complete retirement age. So, 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 exactly like she would if she applied for her own Social Security benefit before complete retirement age. This reduced benefit is permanent, even though 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 just earn up to a definite amount before they've 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 must delay your retirement and spousal benefits.
In this article, I've referred to the wife as the lower earning spouse out of convenience. 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 also the higher or lower earning spouse.
Some Important Facts That 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, so when you're planning for retirement, it's important to consider the fact that you or your spouse may collect Social Security survivor benefits
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Here, we're 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 normally come into play when a spouse takes time away from work to raise a family, and thus 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 sufficient credits to be eligible for Social Security on her own, then her credit will be figured first. If it's lower than her spouse's benefit, she will get her benefit together with 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 since the spousal benefit won't earn credits beyond the complete retirement age. So, 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 exactly like she would if she applied for her own Social Security benefit before complete retirement age. This reduced benefit is permanent, even though 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 just earn up to a definite amount before they've 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 must delay your retirement and spousal benefits.
In this article, I've referred to the wife as the lower earning spouse out of convenience. 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 also the higher or lower earning spouse.
Some Important Facts That 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, so when you're planning for retirement, it's important to consider the fact that you or your spouse may collect Social Security survivor benefits
Making Use Of Government Loans In Order To Upgrade And Improve Your Home.
Being on the property ladder whether renting or owning your own home it can be a very expensive ordeal.
Social Security Benefits: Several Important Facts On Cost Of Living Adjustment 2011
For the second year in a row people who rely on Social Security will not be receiving a cost of living increase. This is only the second time since the cost of living adjustment (COLA) was adopted that recipients have not received an increase.
How Are Social Security Benefits Calculated? Some Points & Issues Affecting The Benefits
One of the most popular Social Security questions that I hear from baby boomers getting ready to retire is "how are Social Security benefits calculated?" This is an important question because it could affect how long you need to work, whether you should continue to work during your retirement years
Social Security Survivor Benefits - What Occurs To Your Social Security Income When A Spouse Passes Away
When Social Security was first established, it only paid retirement income to workers who qualified. It was later amended to include benefits for spouses and survivors, which made it more of a family or insurance plan, instead of just a retirement plan.
The Best Way To Make An Application 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 Actually Helps Monetarily Once A Spouse Or Other Loved One 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.
Important Information And Facts About Financial Planners
There are many different types of financial planners. Not only are financial advisors compensated differently, but the services they provide vary quite a bit as well. Here is a quick summary of the different types of financial advisors and how they can help you.