Make the most of Social Security-Families First Law Firm Part 2
MAKE THE MOST OF SOCIAL SECURITY Part 2
Part 2
Can you share an example of how you’ve applied a spousal benefit with a couple that you’ve worked with?
John Wells: Many times, I will meet with couples where a spouse has been a stay-at-home homemaker. For baby boomers, that’s often the wife, and she can file for Social Security benefits even though she didn’t work outside the home. Members of a couple also have the option of claiming benefits based on their own work record or 50% of their spouse’s benefit (see chart below). For couples with big differences in earnings, claiming the spousal benefit may be better than claiming your own.
Another client was married and is now divorced. She was a stay-at-home homemaker, but she worked several years and qualified for Social Security benefits based on her own work record. She was surprised to find out she can actually claim more through spousal benefits than if she claimed on her own record.
My wife is nine years younger than me. When she retires, she’ll get a pension from the teacher’s union. She is also entitled to Social Security from a prior job. Will there be an offset? What if I die first?
Marcia Mantell: In this scenario, the wife’s Social Security benefit will be reduced by the Windfall Elimination Provision (WEP). The WEP affects people like teachers, fire fighters, and civil servants who have earned a pension from working in a job where Social Security taxes were not withheld.
Now, the other part of the question: Will her survivor benefits be affected if he’s the first to die? The answer is yes. It may be reduced to zero, because she cannot have a pension and then step into his shoes as a surviving wife and receive full Social Security benefits.
Make the most of Social Security
Social Security is a key part of retirement income for most Americans. When you decide to claim is a major decision that will have a long-lasting impact on you and your spouse. Be sure to consider how long you may live, your financial capacity to defer benefits, and the impact it may have on your survivors.
FIDELITY VIEWPOINTS 06/08/2016 https://www.fidelity.com/
Brenda F. Nelms, Esquire, Families First Law Firm, P.L.; Sarasota, FL; Telephone: (941) 925-9070.
At Families Firm Law Firm “Where your family comes First”. Serving Sarasota, Tampa, Bradenton, Venice, Port Charlotte and surrounding areas.