Today’s Social Security column addresses questions about how spousal benefit amounts are calculated, whether the above COLAs can accrue spousal benefit rates, and when spousal benefits may be higher than retirement benefits. Larry Kotlikoff is professor of economics at Boston University and founder and president of Economic Security Planning, Inc.
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Has Social Security overpaid us for spousal and retirement benefits?
Hi Larry, I’m 77 years old and absolutely retired from Social Security at 66. My wife took her spouse’s Social Security perks at age 66. At the age of 70 last July, my wife retired from Social Security. For 3 months, Social Security paid her retirement pension and her spouse’s pension.
Yesterday, he won a letter from Social Security stating that he had been eligible for spousal bills since July and could appeal the decision. Is there a basis in social security rules for appeal?Thanks, Richie
Hello, Richie: Once she takes her retirement pension, your wife is eligible for her retirement pension plus her spouse’s benefit in excess. Your spouse’s excess pension is part of your full-rate retirement pension minus your retirement pension, the difference is reduced if she pension before reaching retirement age.
It seems that your spouse’s excess benefits are negative, which they then set at zero. So, unfortunately, it turns out that you owe the SSA 3 months of spousal benefits that you were not meant to receive.
I’m sorry for the bad news. However, you can run MaxiFi Planner. I’m sure you’ll find moves outside of Social Security that will more than make up for this loss. Better, Larry
Is your past correct?
Hi Larry, are the advantages of getting from my wife based on my PIA in FRA or are they based on the higher amount of COLA if she claims that my wife gets advantages on my registration two years later?My existing benefits with the COLA. But aren’t they based only on my PIA in FRA of 66 years and six months?Thanks, Matt
Hi Matt, I’ll give you an example of how it works. Let’s say Bill started receiving his benefits five years ago at full retirement age (FRA). amount of $2,200 due to accrual in the life charge (COLA).
So we’ll say that Joe’s wife, Amy, becomes FRA and applies for spousal benefits. Amy doesn’t have enough Social Security credits to qualify for her own retirement, so she’s entitled to spousal benefit benefits. it would then be $1,100, or 50% of her husband’s existing MRP. Better, Larry
Will my wife get paid higher when she retires?
Hi Larry, I will be retiring in January at 66 years and six months. My wife, who is 63, began receiving her pension benefits at age 62. My benefits would pay about $2,650. Lately you are receiving about $700 in the last 11 months. Will I get a higher payout once I retire? If so, how much?Thanks Alain
Hi Alan, yes, it looks like your wife will be entitled to more wife benefits once she starts collecting her Social Security retirement benefits. your IP.
A person’s PIA is equivalent to their Social Security retirement benefit rate if they start receiving their benefits at full retirement age (FRA). However, if your wife has not reached her FRA by the time you begin to receive her benefits advantages, your wife’s rate will decrease according to age.
Another thing to consider when deciding when to start getting benefits is the effect it will have on your spouse’s potential survivor benefit rate. Your deceased spouse’s benefit rate, so if you start receiving your benefits now instead of at age 70, it will especially reduce the monthly rate your wife could receive if she dies before her.
You may need to use my company’s software, Maximize My Social Security or MaxiFi Planner, to make sure your family gets the most lifetime benefits. Social Security calculators provided by other corporations or nonprofits can give you proper advice if they were built very carefully. Better, Larry