Social Security benefits: questions and answers
Q: My wife applied for Social Security benefits at age 62. She is now 67 and has reached her full retirement age. When I reached my full retirement age, I applied for and was approved for the restricted spousal option. When I reached age 70 a few years ago, I started receiving benefits and my benefits did increase 8% per year from my full retirement age because I did not file for my benefits based on my work record until 70. My question is, if I die before my wife, will she receive 100% of the amount I receive from Social Security, or will she be penalized because she applied for benefits at 62?
A: She will not be penalized. When a widow(er) applies for survivor benefits, as long as he or she has reached full retirement age (FRA), he or she is entitled to 100% of the benefit the deceased spouse was receiving. This is the case as long as the widow(er) is currently unmarried or remarried after age 60. However, if a widow(er) applies for survivor benefits prior to reaching FRA, the benefit is pro-rated. At age 60, he or she would be eligible to receive 71.5% of the spouse's benefit, and between 60 and FRA, the amount is pro-rated.
Q: I am now 68, and I have not yet applied for Social Security benefits. I plan on waiting until age 70 to apply. My wife, who is now 72, also waited to age 70 to apply for the benefits she is now receiving. Is it too late for me to apply for the restricted spousal benefits you discussed in a recent article? Even if I am eligible for these benefits, are there any disadvantages if I file for this option?
A: No, it is not too late. Anyone born before January 2, 1954, as you were, and who has reached FRA, as you have, is eligible for a spousal benefit as long as their spouse has applied for and is receiving Social Security benefits based on his or her work record. You would be entitled to 50% of the amount your wife would have received at her FRA. (Note that this amount is lower than the benefit she is now receiving.) I recommend that you file for the restricted spousal option as soon as possible. There is no downside in applying for this option. When you reach age 70, you will be entitled to benefits based on your work record, and you would receive an additional 8% per year increase from your FRA benefit. As I said in the article you referred to, many Social Security Administration (SSA) representatives are still not familiar with the restricted spousal option. If a representative tells you he is unaware of such an option, insist on speaking with a supervisor.
Q: I was divorced after 12 years of marriage. I did remarry, after age 60, and am currently married. I am now receiving Social Security benefits based on my work record. My ex-husband recently passed away. He was over 70, and I believe that he didn't apply for his Social Security benefits until age 70. His current wife is still alive. Is it possible am I entitled to additional Social Security benefits? How do I find out?
A: It is certainly possible that you are entitled to additional benefits. It is not relevant that he has remarried and that his current wife is still alive. The fact that she is entitled to survivor benefits has no impact on your right to survivor benefits. To determine whether you are entitled to additional benefits, you have to provide SSA with his Social Security number, as well as proof of your marriage and divorce. SSA should then be able to inform you as to whether you are entitled to additional benefits. You are entitled to the same survivor benefits as if you were still married to him. Once SSA verifies your right to survivor benefits, you are entitled only to those benefits or to the benefits you are currently receiving, whichever amount is greater, but not both.
Elliot Raphaelson welcomes your questions and comments at raphelliot@gmail.com.