From today's CRAIN'S WEALTH 06/25/2016 http://www.crainswealth.com/gallery/20170609/FREE/609009999/PH/what-every-woman-should-know-about-social-security&Params=Itemnr=11
ALSO RECOMMEND: SOCIAL SECURITY ADMINISTRATION BOOKLET UPDATE JUNE, 2017
What every woman should know about Social Security
Women tend to live longer than men, meaning
they spend more time in retirement and often do so with less savings, given
their lower average lifetime earnings. They are also more likely to live alone
in old age due to widowhood or divorce. Consequently, women represent more than
half of all Social Security beneficiaries age 62 and older and two-thirds of
all beneficiaries over the age of 85.
Here are the top 10 things women need to know about Social Security benefits.
Here are the top 10 things women need to know about Social Security benefits.
You earned it
If you work for at least 10 years and earn a minimum of 40 work
credits, you are entitled to a Social Security retirement benefit as early as
age 62 or disability benefits even sooner if you can’t work because of severe
illness or injury. Retirement benefits are based on your highest 35 years of
earnings. If you work less than that, the zero earnings years in the
35-year-calculation will reduce your retirement benefit.
Marriage Benefit
If you are married, you may be entitled to Social Security
retirement benefits, both on your own work record and as a spouse. A spousal
benefit is worth between one-third and one-half of the husband’s benefit,
depending on your age at time of claim. In most cases, you would be paid the
higher of the two benefits, not both.
Disappearing opportunity
If you were born on or before Jan. 1, 1954, you are eligible to
claim only spousal benefits on your husband’s earnings record when you turn 66,
allowing your own retirement benefits to continue to grow by 8% per year up to
age 70. Younger workers will never have this choice. Whenever they file for
Social Security, they will be “deemed” to file for all available benefits and
would be paid the higher of the two amounts.
Same-sex marriage
Lesbian couples are entitled to the same Social Security
benefits as heterosexual couples. Couples must be married at least one year to
claim benefits as a spouse. If entitled to benefits on your own earnings record
and as a spouse, you would be paid the higher of the two amounts. But if you
were born on or before Jan. 1, 1954, you have the option to claim only spousal
benefits at 66 and switch to your own larger retirement benefits at 70.
Collect on your ex
If you were married at least 10 years, are divorced and
currently single, you may be able to collect Social Security benefits on your
ex’s earnings record. And if you have been divorced at least two years and both
former spouses are at least 62 years old, you can collect benefits as an
“independently entitled spouse” even if your ex has not yet claimed benefits.
But to collect only spousal benefits while your own benefits keep growing up
until age 70, you must have been born on or before Jan. 1, 1954.
Caregiving spouse
If your husband is collecting either Social Security retirement
or disability benefits and you are caring for his minor child under age 16 or a
permanently disabled adult child, you may be eligible for a spousal benefit
regardless of your age. Once the youngest child turns 16, you will lose your
benefits until you qualify for retirement benefits as early as age 62.
Survivors have choices
If you are entitled to a Social Security retirement benefit on
your own earnings record and you are a surviving spouse, you can choose whether
to collect your retirement or survivor benefit first and switch to the other
benefit later if it would result in a larger amount. Reduced survivor benefits
are available as early as age 60. Full benefits — worth 100% of what your late
husband was collecting or entitled to collect at time of death — are available
at your full retirement age (FRA) but they do not grow larger if you wait
beyond FRA to collect them. However, retirement benefits increase by 8% per
year for every year you postpone collecting them beyond FRA.
Public employees offset
Public employees, including teachers, in about a dozen states
are not covered by Social Security. If you have a public pension based on work
where you did not pay FICA taxes and your try to collect Social Security
benefits as a spouse or survivor, those benefits could be reduced or wiped out
by the Government Pension Offset provision. The rule reduces any potential
Social Security benefits by two-thirds of the amount of the public pension.
Earnings test
Anyone who collects any type of Social Security benefits — as a
worker, spouse or widow — before full retirement age while continuing to work
could lose some or all of their benefits to the earnings test. They would
forfeit $1 in benefits for every $2 earned over $16,920 in 2017. Any benefits
lost to the earnings cap would be reinstated at full retirement age in the form
of higher monthly benefits.
New suspension rules
If you are collecting benefits on your husband’s earnings record
and he decides to suspend his benefits at full retirement age to earn delayed
retirement credits, beware that your spousal benefits would stop, too. Under
new rules that took effect last year, anyone can still suspend benefits at full
retirement age, but no one can collect benefits on that worker’s record during
the suspension.
