Making
decisions about Social Security often becomes a two-person affair.
Russell Settle • October 3, 2019
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Welcome
to the Social Security Q&A. You ask a Social Security question, our expert
provides the answer.
Today’s
question comes from Carol:
“I am
59 and will soon be getting disability benefits due to many health issues. My
benefit amount is $860 a month. My husband is 66 and working part time. He has
not claimed Social Security yet. If he claimed at 66, he would receive about
$2,180 a month. He also has some health issues and (based on) family (history)
does not have a life expectancy past (his) early 70s.
Would you
recommend early retirement for him? Also, if he were to pass before me, would
that affect my disability benefits? Would it be better to claim a spousal
benefit, or am I even eligible for it?”
Raising
important questions
Carol,
you raise several interesting issues. First, since your husband was born prior
to 1954, he qualifies for a special option often referred to as a “restricted
application.” This would work as follows:
He can
claim a spousal benefit on your record, receiving half of your benefit, or $430
a month. Then, at age 70 (or earlier) he can switch to his own benefit. If he
waits until age 70, his benefit will have grown by 32%, from $2,180 to $2,878.
Second,
when your husband claims his own benefit, you are eligible for a spousal
supplement. If you claimed it at your full retirement age (FRA) of 67, you
would receive a supplement that would bring your overall benefit up to half of
his FRA benefit. Half of his FRA amount is $1,090. So, your benefit of $860
would be increased by a supplement of $230, bringing your total benefit up to
$1,090.
If you
claimed the spousal supplement before age 67, it would be reduced by an early
penalty. For example, if you claimed the spousal supplement at age 62, it would
be reduced by about 35%, or from $230 to about $150.
Next,
if your husband dies first, you become eligible for a widow’s benefit. If you
claim it at your FRA of 67, you would receive the same amount that he had
received. Claiming it earlier than your FRA would result in an early claiming
penalty.
Finally,
we have one last question: Should your husband claim benefits soon because of
his health issues and family history?
If your
husband were not married, I would answer with a definite “yes.” However, since
you stand to inherit his benefit, your life expectancy plays an important role
here.
If your
disability is not life-threatening, then you could outlive your husband by many
years. If this is the case, you could benefit substantially by having him delay
claiming until age 70.
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The
questions I’m likeliest to answer are those that will interest other readers.
So, it’s better not to ask for super-specific advice that applies only to you.
About
me
I hold
a doctorate in economics from the University of Wisconsin and taught economics
at the University of Delaware for many years.
In
2009, I co-founded SocialSecurityChoices.com, an internet company
that provides advice on Social Security claiming decisions. You can learn more
about that by clicking here.
Disclaimer: We
strive to provide accurate information with regard to the subject matter
covered. It is offered with the understanding that we are not offering legal,
accounting, investment or other professional advice or services, and that the
SSA alone makes all final determinations on your eligibility for benefits and
the benefit amounts. Our advice on claiming strategies does not comprise a
comprehensive financial plan. You should consult with your financial adviser
regarding your individual situation.
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