A Few Important Information Which You Should Know About Social Security Spouse Benefits
When most of the people think about Social Security, they naturally think of retirement benefits. But about 1/5 of all Social Security benefits are spousal or survivor benefits, so when you're planning for retirement, it's crucial to think about the fact that you or your spouse may collect Social Security survivor benefits or spousal benefits at few points in their life.
In this article, we're going to discuss the basics of Social Security spousal benefits.
Generally, a married person could receive a spousal benefit equal to half of her husband's basic benefit, also referred to as the PIA (primary insurance amount).
Social Security spouse benefits generally come into play when one spouse takes time away from work to raise a family, and thus has 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 calculated first. If it's lower than her spouse's benefit, she will receive her benefit along with an adjustment to equal half of her husband's primary benefit.
When Should You 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 no good for the lower earning spouse to wait beyond her full retirement age to apply for spousal benefits as the spousal benefit will not earn credits beyond the complete retirement age. Therefore, 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 full retirement age will receive a reduced benefit exactly like she would if she applied for her own Social Security benefit before full retirement age. This reduced benefit is permanent, even though she takes her spousal benefit at age 62 and switches to her own benefit at full retirement age.
Other Issues:
Persons who start collecting retirement benefits before full retirement age can just earn up to a certain amount before they've to pay back part or all of their Social Security benefits. In 2009, 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 along with 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 have referred to the wife as the lower earning spouse out of ease. However, 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.
A Few Important Information 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, 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
Social Security Spousal Benefits: Another Key To Your Social Security Decision
Can a spouse collect on her husband's social security if she reaches retirement age before her husband? No. In order for a wife to collect Social Security benefits on her husband's earnings the following requirements must be met:
Social Security Eligibility: What Are The Requirements For A Homemaker To Qualify For Social Security?
When Social Security was first established, most families only had one bread-earner, and only the working spouse qualified for retirement benefits. This caused financial difficulties for the spouse who didn't work (and therefore didn't qualify for Social Security) if the working spouse passed away first.
Several Ways A Financial Planner Could Help You Attain Your Financial Objectives
Many people wonder exactly what a financial planner does, and how they can help you. Here are just three ways a financial planner can help you achieve your financial dreams and goals.
Things To Remember When Selecting A Financial Planner
Many people hire financial planners to help them meet their financial goals. Whether you are a beginner investor with very little experience or whether you have a good knowledge and understanding of financial planning topics, a financial planner can be a valuable asset when planning for your financial goals.
Social Security Death Benefits Can Help Monetarily Once A Spouse 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 Do Pay Day Loans Help.
Have you ever found yourself in an emergency situation? Do you require a substantial amount of money fast but don't know where to get it? Payday loans may be just the thing you need.
A Few Key Exceptional Roth IRA Withdrawal Rules That Might Help You To Take Money Out Of Roth IRA
Roth IRAs are governed by the IRS; as such there are many Roth IRA withdrawal rules that must be followed before you take money out of your account. In this article we'll discuss Roth IRA distributions; when they can be taken, when and if they are taxable, when and if penalties might apply.
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?
