Answering More Social Security Questions

 My recent articles on maximizing Social Security benefits generated a lot of interest among readers and triggered some good questions. In this visit we review some key questions readers asked.

My wife died recently. I’m 62 and haven’t begun receiving any Social Security benefits. Since I’m older than 60, I’m eligible to receive survivor’s benefits. If I begin survivor’s benefits now, does that mean I can’t take my own retirement benefits in the future or that they’ll be reduced because I took survivor’s benefits before age 66?

A surviving spouse can begin collecting survivor’s benefits as early as age 60. Survivor’s benefits are 100% of what the deceased spouse was receiving at the time of his or her death or was eligible to receive. But there’s a reduction if you begin receiving survivor’s benefits before your full retirement age. If a survivor begins benefits as early as age 60, they will be reduced to 71.5% of the full benefit.

But a survivor can begin taking survivor’s benefits and later switch to his or her own retirement benefits any time at age 62 or later. When you begin retirement benefits on your own record, you’ll receive whatever retirement benefits you’d be entitled to at the age you begin them, regardless of when you began survivor’s benefits. So, taking survivor’s benefits doesn’t reduce what you’ll eventually receive for your own retirement benefits.

I’m divorced and age 66. I’d like to receive some Social Security benefits but want to delay receiving my own retirement benefit until it reaches the maximum at age 70. Can I file to claim spousal benefits based on my ex-spouse’s earnings record? Does it matter if he’s remarried?

Yes, you probably can file to receive a spousal benefit based on your ex-spouse’s earnings. If you were married at least 10 years, are unmarried, and at least age 62 you can apply to receive either your own retirement benefits or spousal benefits based on your ex-spouse’s record. When the former spouse is eligible to receive retirement benefits but hasn’t applied for them, you still can apply for spousal benefits if you’ve been divorced at least two years.

Normally, Social Security pays the higher of your earned benefits and the spousal benefit. But, like a married person, you can file to claim only the spousal benefit now and file to claim your own benefit later when it is higher.

You have to be unmarried to apply for and continue to receive the spousal benefits based on an ex-spouse’s earnings. Once you remarry, the right to benefits based on an ex-spouse’s record ends. (There’s an exception if you remarried and the second marriage ended in divorce or the other spouse’s death before you applied for benefits.)

But your ex-spouse’s marital status doesn’t matter. The current marital status of your ex-spouse doesn’t affect your right to receive benefits based on his or her earnings. So, it’s possible that at least three people can simultaneously be receiving benefits based on one person’s earnings: the person with the earnings, the current spouse, and the former spouse.

But here’s an interesting twist for someone who’s receiving survivor’s benefits. If a person is receiving survivor benefits and remarried after age 60, the new marriage will be ignored. The surviving spouse can continue to receive the survivor benefits.

I want to file to claim spousal benefits only and let me own benefits continue to increase. I can’t figure out how to do that on the Social Security web site.

To claim spousal benefits only, you file what is called a restricted claim. Some readers have told me it’s not clear how to do this on the Social Security web site. You don’t want to file an application that will pay you the higher of your own benefits and spousal benefits. So, if you aren’t sure the online application allows you to file a restricted claim for spousal benefits only, then request a paper application or visit your local Social Security office to complete an application in person and receive guidance from someone there.

RW April 2013.