Full Retirement Age (FRA): You can file anytime between age 62 to 70 but your full retirement age will be 66 to 67, depending on your date of birth. Your full retirement age will determine when you receive your full benefit amount. If you file before your FRA, the benefit amount will be reduced. If you file after your FRA, your benefit amount will be increased. The amount will be adjusted each year.
Spousal Benefits: Social Security will also provide for your loved ones. If you are married for at least a year your spouse can pull benefits from your work record and vice versa. Spousal benefits are 50% of the workers’ PIA and can start as early as age 62 (reduced).
One spouse must file for the other to claim benefits. The dependent spouse does not have to have any working record to pull benefits.
Surviving Spouse: When I conduct my Social Security planning workshops this is the topic where all the wives sit up, as they should. Surviving spouse benefits is a big part of wealth and income transfer at the death of the first spouse, which as you know statistically is the husband. When the primary insured dies what will the surviving spouse receive? How will surviving spouse benefits affect other income/benefits the spouse will receive? Planning for surviving spouse benefits should happen upfront as the plan is being designed, not when the death of that first spouse occurs.
Benefits for other family members: Other family members who may be able to receive dependent benefits are dependent children under the age of 18, disabled individuals as well as dependent parents. There is a “household maximum” that has to be considered when benefits are calculated for a family unit.
Divorced spouse benefits: If you are divorced, how do divorced spousal benefits work? This is a commonly misunderstood benefit that has several moving pieces to it.
- Married at least 10 years
- Currently unmarried (unless you are of a certain age)
- Ex-spouse must also file
Ex-spouse benefits have no family maximum so someone can be married previously multiple times for at least 10 years and each ex-spouse would qualify for spousal benefits.
Next, let’s review your filing options and considerations when filing.
Filing Options and Considerations
As you’re planning to file it’s important to know the terminology. If you file prior to or after your Full Retirement Age:
- It’s referred to as “Deemed Filing.”
- This is important because it not only activates your benefit but allows spouses, divorced spouses, and dependents to claim as well.
- If you file At or after Full Retirement Age, it’s considered standard filing.
File Restricted is a HUGE benefit if you qualify. This allows a spouse or divorced spouse to receive a benefit while their own personal benefit is being delayed and earning Delayed Retirement Benefits. You must have been born before January 1, 1954, to take advantage of this benefit. As of right now, there are only three more years this benefit can be taken advantage of. Once those retirees hit 70, they will no longer be able to take advantage of the restricted application concept.
If you or your spouse were born before January 1, 1954, and have not filed, PLEASE contact Patriot Advisory Group as you may have an opportunity of taking advantage of this HUGE benefit that will soon disappear.