When most of the people think about Social Security, they normally think of retirement benefits. However about 1/5 of all Social Security benefits are spousal or survivor benefits, therefore when you are planning for retirement, it's vital to think about the fact that you or your spouse might get Social Security survivor benefits or spousal benefits at few points in their life.
Here, we are gonna talk about 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 named 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 therefore has very little or no income.
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 is lower than her spouse's benefit, she will get her benefit plus an adjustment to equal half of her husband's primary benefit.
When you should Begin 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 complete retirement age to apply for spousal benefits since the spousal benefit won't earn credits beyond the full retirement age. Thus, spouses applying for the spousal benefit must 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 get 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 if she takes her spousal benefit at the age of 62 and switches to her own benefit at complete retirement age.
Other Issues:
Persons who begin collecting retirement benefits before complete retirement age can just earn up to a definite amount before they have to pay back part or all of their Social Security benefits. In '09, that amount is $14,160. If you earn higher 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 retirement benefits, so if you expect to work before you reach complete 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 simplicity. But, in today's world, it is 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.
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When Social Security was established most women did not work. Lower or no earnings combined with a longer life span meant poverty for many women when their husbands passed away. Social Security recognized these challenges and have implemented several changes to the system to help women avoid poverty.
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Here, we are gonna talk about 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 named 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 therefore has very little or no income.
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 is lower than her spouse's benefit, she will get her benefit plus an adjustment to equal half of her husband's primary benefit.
When you should Begin 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 complete retirement age to apply for spousal benefits since the spousal benefit won't earn credits beyond the full retirement age. Thus, spouses applying for the spousal benefit must 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 get 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 if she takes her spousal benefit at the age of 62 and switches to her own benefit at complete retirement age.
Other Issues:
Persons who begin collecting retirement benefits before complete retirement age can just earn up to a definite amount before they have to pay back part or all of their Social Security benefits. In '09, that amount is $14,160. If you earn higher 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 retirement benefits, so if you expect to work before you reach complete 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 simplicity. But, in today's world, it is 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.
Social Security Benefits: An Effective Discussion On Terms & Conditions To Get The Benefit & How To Collect After A Family Member's Death
The loss of a family member can be devastating, both emotionally and financially. Social Security is meant to be a survivor program as well as a retirement program. Most people are aware of Social Security retirement benefits, but are you aware that there are Social Security death benefits as well?
Present Situation About Social Security Spouse And Survivor Benefits
When Social Security was established most women did not work. Lower or no earnings combined with a longer life span meant poverty for many women when their husbands passed away. Social Security recognized these challenges and have implemented several changes to the system to help women avoid poverty.
Methods To Request 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.
What You Need To Know 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.
Some 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.
Social Security Widow Benefits - What Occurs To Your Social Security Income When One Spouse Dies
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.
Discover The Best Way To Apply For Social Security
If you areapproaching retirement, you are probably already looking into how to apply for Social Security benefits. Generally, you can apply once you are within 120 days of your 62nd birthday. There are several things you should know to make the application process as smooth as possible.
Completely New Regulations Suggest More Individuals Doing Roth IRA Conversions In 2010
As we near the end of 2010, countless people have already done Roth IRA conversions, and many others are questioning if a Roth IRA conversion in 2010 is the right move for them.