Social Security may be one of your largest assets. What and when you collect will make a huge difference to your lifetime benefits.
Today’s post examines changing Social Security benefit start dates after filing, widow's benefits and pensions from work, the availability of spousal benefits, whether place of residence affects Social Security benefit amounts and restricted applications. Larry Kotlikoff is the founder and president of Economic Security Planning, a company that markets Maximize My Social Security, a Social Security benefits calculator referred to in this post.
Ask Larry about Social Security:
Can I Change My Social Security Benefit Start Date After Filing?
Hi Larry, I submitted my Social Security retirement benefit application today. Afterwards I realized I should have indicated a different start date for my benefit. I wanted the first check in November. I'm 67 yrs 2 months if that matters. One more thing, the application also asked if I wanted Medicare B and I said yes. If the start date isn't changed does it affect the start date of Medicare B? Thanks, Jessie
Hi Jessie, Yes, you still have time to change your start date. If you filed online, you may want to try contacting Social Security by phone or in person to get connected with the office handling your claim. However, there is a good chance that a Social Security representative will contact you about your claim even if you don't contact them. That could also give you an opportunity to change your start date. If all else fails and your claim is processed with an incorrect start date, you can still submit a written request to change your month of entitlement.
If you are just signing up now for Part B of Medicare because you've been covered by an employer health plan, you will be need to submit proof of your coverage in order to be able to sign up for Part B coverage this year. Otherwise, the earliest you can apply for Part B is the next General Enrollment Period (GEP) that runs from January through March of next year. A GEP enrollment results in Part B coverage beginning with July 1st of the year of enrollment. Best, Larry
Will I Lose My Widow's Benefits If I Receive A Pension From Work?
Hi Larry, My husband passed away and I receive a widow's benefit based on his record. I will be able to retire in two years and will receive a pension. Do I lose my widows benefits? Thanks, Vicky
Hi Vicky, Not necessarily, but if you will be receiving a government pension based on your work that is exempt from Social Security taxes, then your Social Security widow's benefits could be offset by 2/3rds of the amount of your non-covered government pension. This is due to the Government Pension Offset (GPO) provision. If you are insured for Social Security benefits on your own record, you may have additional filing options. In that event, you ca use an expert Social Security benefits calculator, such as my company's software or another top program to determine your best course of action. Best, Larry
Can My Spouse Get Benefits On My Record Now?
Hi Larry, I am 73, retired and draw my Social Security retirement benefit. My spouse is not retired and 63. Can she get a spousal benefit on my record? Are there any penalties when she reaches full retirement age? Thanks, Bill
Hi Bill, If your spouse files anytime before her full retirement age (FRA), she'll be deemed to be filing for both spousal benefits and retirement benefits on her own record. In that event, she'll basically just receive the higher of the 2 rates and her benefit rate will be reduced for age. Her benefits would also be subject to the Social Security earnings test until she reaches FRA. If your spouse was born prior to 1/2/1954, she would have the option of filing just for spousal benefits only at FRA and allowing her own retirement rate to grow until age 70. an expert Social Security benefits calculator as described in other answers can help your spouse determine her best filing strategy. Best, Larry
Is It True That I Get A Lower Benefit Rate Because I Got My Social Security Number In Puerto Rico?
Hi Larry, I have a question for you, a long time ago I was told that if my Social Security number was given to me in Puerto Rico that when it was time to get the benefits when I became of retirement age that I could not get the same amount as of someone with a Social Security number given to them in the states. I think is true because I have a niece that became disabled and is getting more than I do. Also she did not work as much as I did. Please let me know if it is true and if it is what I can do to get the right benefits. Thanks, Minnie
Hi Minnie, No that is not true. Where you were residing at the time you were issued your Social Security number has no bearing on the calculation of your benefit rate. Best, Larry
Will My Plan Work?
Hi Larry, I was born in1952 and my wife was born in1956. My wife's benefit is less than mine but over 50% of mine. I am still working and plan to have my wife apply for early benefits at age 62. Later that year, when I turn 66, I will file a restricted application for spousal benefits only, with the intent of changing to my own benefit at age 70. Will this still work? Thanks, Arnold
Hi Arnold, Yes, since you were born before 1/2/1954, the scenario you describe is still an option for you. However, you may want to consider using an expert Social Security benefits calculator, such as Maximize My Social Security or another very highly rated program to make sure that is the optimal filing strategy in your case. Best, Larry
To learn more about your Social Security options, visit Economic Security Planning, Inc.