Ways To Take Full Advantage Of The Social Security Spousal Benefit

Can a spouse collect on her husband's social security if she reaches retirement age before her husband? No. In order for a wife to collect Social Security benefits on her husband's earnings the following conditions have to be satisfied:

1. The wife must be at least age 62

2. The husband will need to be eligible for benefits, consequently he should also be at least age 62. Additionally, the husband is required to actually apply for Social Security retirement benefits in order for his wife to collect based on his earnings. The husband may then choose to postpone receiving benefits. This strategy is known as "file and suspend".

To provide you with an example, if the wife is 62 and the husband is 58, the wife can start receiving benefits based on her income, but she cannot receive benefits based on her husband's earnings until he turns 62 and applies for benefits.

Having said that, if the wife is 66 and her spouse is only 62, then the wife can begin collecting based on her husband's earnings (again the husband will need to apply for his Social Security before his wife will be able to collect based on his earnings).

In both illustrations shown above, the wife can start collecting benefits calculated on her own earnings as soon as she turns age 62 (assuming she has at least 40 quarters and also qualifies for benefits on her own), then change to 1 / 2 her husband's benefit as soon as her husband becomes eligible for Social Security.

A number of areas to consider before applying for benefits:

If a wife applies for her Social Security spousal benefit based on her husband's income when she attains full retirement age (age 66 for people retiring now), then she'll receive 50% of her husband's primary insurance amount (PIA). However, if she starts collecting benefits at age 62, then her benefit will only be 35% of her husband's PIA.

It doesn't help the spouse to apply after her full retirement age, as spousal benefits will not include delayed credits. Additionally, it doesn't help the wife if the husband delays applying for benefits because she won't receive any rise in benefits that he gets by waiting to apply.

Where a spouse reaches full retirement age and is eligible for a spousal benefit or her own benefit, she may start receiving the spousal benefit now and delay collecting her own benefit in order to build up delayed credits on her own benefit.

An individual can collect Social Security spousal benefits based on an ex-spouse's earnings as long as you were married for at least ten years and you are at present unmarried. In case you have more than one ex-spouse that you meet the requirements for spousal benefits, you will receive the highest benefit you are entitled to. One advantage that divorced spouses have over married spouses is the fact that a divorced spouse won't have to wait for a former husband to start receiving benefits as long as the couple has been divorced for at least two years when she applies.

As a final point, the Social Security retirement system is gender neutral, so though this article has assumed that the wife is the one applying for spousal benefits, if the wife makes more than her husband, the husband can apply for Social Security benefits based on his wife's earnings.

Retirement Savings Become Even More Crucial As Pensions Become Extinct And Social Security Changes.
Retirement income is often referred to as the three-legged stool because traditionally retirement income has come from three sources: pensions, Social Security and your own savings. Well, the three-legged stool is looking pretty lopsided for many people these days as pensions become extinct and Social Security changes take place.

New Rules Imply 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.

Social Security Benefits: Several Crucial Facts On Cost Of Living Adjustment 2011
For the second year in a row people who rely on Social Security will not be receiving a cost of living increase. This is only the second time since the cost of living adjustment (COLA) was adopted that recipients have not received an increase.

How You Will Proceed With Social Security Survivor Benefits After Your Spouse Passes Away
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.

Things To Remember When Looking For A Financial Planner
Many people hire financial planners to help them meet their financial goals. Whether you are a beginner investor with very little experience or whether you have a good knowledge and understanding of financial planning topics, a financial planner can be a valuable asset when planning for your financial goals.

Social Security Death Benefits Can Aid Financially After Husband Or Wife Or Other Family Member Has Passed Away
Qualifying relatives of individuals who have passed away can receive assistance from social security death benefits. The payments provided vary and depend on a number of things such as the payments that have been made to social security as well as the relationship of the relative to the individual.

Discover How One Can 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.

Learn How To Get A Social Security Cost Of Living Increase
A cost-of-living increase is basically a reassessment of the average amount of money that a person needs in order to survive. Cost of living increases are often provided by employers to employees to make sure that people's incomes are substantial enough for them to meet the basic costs of living.