Jacqueline — Illinois: I started taking Social Security at age 62 and continued working. Social Security denied me and said I am short and need 15 more credits. My husband is over 70, does not work, and does not have enough credits to collect SS. Many stay-at-home moms and homemakers are left out of the disability benefit system, except for those with very low household income or whose spouses have become disabled or died. Jan Dils Attorneys at Law will give you a free consultation to see if you’re a good candidate for social … I intend on waiting until age 70 to start collecting Social Security benefits. Naysayers argue that because stay-at-home moms don’t earn an income, they don’t contribute to the economy or the Social Security coffers. William — New York, N.Y.: My wife and I are the same age (64 this July and October). And if it hurts you, it can hurt you a lot! Suppose you live in a house owned by your sister who allows you to live there rent-free. ANSWER: Both the Social Security and Medicare programs provide for stay-at-home spouses. For the most recent “Ask Larry” columns, check out maximizemysocialsecurity.com/ask-larry. To get help, go to the Social Security Administration website, SSA.gov, and check out the FAQs. My guess is that she’ll be better off taking her own retirement at 63 or 64 and then taking half of her ex-husband’s when he retires at full retirement age. In this case, she’ll be forced to take what is pretty close to the larger of the two reduced benefits. But looking at the annual amounts you’ll get from suspending will make clear if suspension makes sense. How does a couple collect benefits when one spouse hasn't worked outside the home? To get help, type "budget worksheet" into an Internet search engine, and you'll find many free forms and Excel spreadsheets to develop a spending plan. Since stay-at-home parents do not receive a traditional pay check for their hard work, that means they are not eligible for SSDI. When a person whose job was primarily a homemaker or "housewife" becomes disabled, he or she may find herself ineligible for any kind of disability benefits. A disabled adult child can collect SSDI only if a parent, adoptive parent, or stepparent is receiving Social Security retirement or disability benefits (SSDI) – or had earned enough Social Security credits before dying to be entitled to one of these benefits. The Social Security Administration—SSA—oversees income programs that supplement eligible recipients. Under age 18: The child’s Social Security does not matter. Subscribe to Here’s the Deal, our politics newsletter for analysis you won’t find anywhere else. If you still have children at home under the age of 18, they are also eligible for a Social Security survivor benefit. D.D. Creators.com requires Javascript for full functionality. It will let you consider tapping your 401(k) money first and then going onto Social Security. Eric — Evansville, Ill.: My sister Stephanie was married more than 10 years but divorced in mid-life. Should I apply for Social Security based on my earnings? has a parent who begins to get Social Security retirement or disability benefits or has a parent with a qualifying work history who dies. You receive $300 per month in Social Security benefits. Can I receive 50 percent of his Social Security benefit when I reach 66 or would I have to wait when until I turn 70 to get 50 percent or more? We determine that the house would rent for $900 per month if your sister rented it on the open market. Your parents' debts will be paid out of their estate (everything they own, including real estate). If it’s not, suspending your retirement benefit could actually hurt you. Larry Kotlikoff: With personal finance, it’s never, ever the case that one size fits all. — Emily, Oregon. Posts: 1. — Jeb, email. Alimony can significantly impact the monthly Social Security … Hence, suspending your retirement benefit entails taking an excess widows benefit for four years and then getting the widows benefit because, I’m assuming, it will be larger than 1.32 times your reduced retirement benefit. In other words, she should not file for her retirement benefit until 70. Why does Orman want to make all of us regular stiffs feel bad? If you're blind, the limit is $2,040. Larry Kotlikoff: Your wife’s benefit at full retirement age ​will be her permanently reduced retirement benefit, plus her excess spousal benefit since she would have dropped into excess benefit status by filing for her full retirement benefit. We receive 150 percent of his benefit. What should I do, and who is telling me the truth? lf it does, you can start taking it now. Generally, Social Security will find you disabled if you can't sustain full-time work on a regular basis. Dear Betty: You need a budget. I forgot to mention I turned 61 in March 2014. How can I evaluate this? However, instead of 50% of the worker’s benefit amount, children will receive … I was thinking of filing and suspending benefits when I turn 66 (my full retirement age). Thank you. Soila — San Antonio, Texas: I am a retiree receiving a government pension. Dec 12 After raising her children, she went back to work as a nurse’s aid not making too much. How officials in Washington state are attempting to eradicate the ‘Murder Hornet’ before it spreads, Read H. happy2balone OP. It can help you see if you can actually wait to collect benefits by looking at your cash flow problems. Italy’s staggering virus toll poses uncomfortable questions, Read Survivor Benefits for a Spouse If your mother qualified for Social Security benefits and you are under age 16, the Social Security Administration will pay your father benefits from your mother’s record if he provides for your care. We have no consumer debt. First, we work with many disability insurance carriers. Anyone they owe has to get in line to be paid, with secured creditors like their mortgage lender in first position. Dec 11 Your monthly check will be equal to 50 percent of his, if he waits until "full retirement age" to begin collecting benefits (65, 66 or 67 depending on the year he was born). Thank you My goal is to retire in January 2015. Most likely her reduced retirement benefit exceeds her reduced spousal benefit, and she’ll just get her reduced retirement and never see a penny in terms of a divorced spousal benefit. The excess spousal benefit is half of your full retirement benefit less 100 percent of your full retirement benefit. The lesson here is that suspending retirement benefits can hurt you or help you depending on your circumstances. The SSA sets strict limits on the total income a family can have, which include monthly income, savings, investments, and other assets. You need to use commercial software that can look at all the strategies and decide which is going to maximize your Social Security benefits on a lifetime basis. By Susan Kelley on January 04, 2020 in First-Time Applicants. Clearly the suspension option will produce lower lifetime benefits. To find out more about Mary and read her past columns, please visit the Creators Syndicate Web page at www.creators.com. Most people think of Social Security as a retirement program, but disability benefits are also a huge part of Social Security. If you earn enough in a given quarter, you can garner multiple coverage credits. In this case, suspending means moving from A) getting a check for the rest of your life equal to your widows benefit to B) getting a smaller check for four years, namely your excess widows benefit, and then getting a check equal to your widows benefit from age 70 on. You can’t receive more than one of these benefits at once. Consult it often, and you'll find yourself in control of your money, instead of the other way around. You pay all the utilities and buy all the food. Your Social Security retirement benefits are tied to your husband's. There is also a Social Security Disability plan for people who become disabled and unable to work but do not already have a job. Once your expenses and income are in line with each other, use your budget as your monthly financial road map. There is no gain to waiting to collect your spousal benefit. I am an adult and I receive social security disability. If you have private coverage, it is more likely that you can collect short-term disability and Social Security Disability Income (SSDI) at the same time. Larry Kotlikoff: You do need 40 credits to qualify for your own retirement benefit. I won’t get into all the details because it’s terribly complicated. The program shows what you want to spend each year to have a stable living standard, but it won’t put you in debt to achieve that end. Her benefit after full retirement age will then be 50 percent of your full retirement benefit, plus (R-1) times X. Make two lists: Income and Expenses. Dear Mary: I'm recently divorced. You are probably wondering who we like to work with. Under Expenses, list all of your bills and obligations, starting with your rent or mortgage payment, food, car payment, utilities, clothes, etc. They told my husband last year when he applied that I could apply under his name. Would we be ahead in the long run if she started collecting her own benefits now (at 64), and then collected spousal benefits when I file and suspend when we are 66? Climate change is flooding the remote north with light – and new species, By Fay Abuelgasim, Nariman El-Mofty, Cara Anna, Associated Press, By Lauran Neergaard, Jonathan Lemire and Catherine Lucey, Matthew Perrone, Associated Press. A: Yes, non-working spouses can collect Social Security. I have not been employed for many years. That carrier is Illinois Mutual. You also have the option of taking your excess widows benefit now (if it’s positive) and suspending your own reduced retirement benefit and restarting it again at 70 at a 32 percent higher level than is currently the case. When your husband passes away, you can collect a widows benefit, but it will also be reduced by two-thirds of your non-covered pension. Mary Hunt is the founder of www.DebtProofLiving.com, a personal finance member website and the author of "7 Money Rules for Life," released in 2012. He gets a great pension. Larry Kotlikoff: Commercial software can help, but she surely should do what you are guessing she should do. Yes, this is really complicated to follow. Should I apply for Social Security for myself rather than receive benefits based on the fact that I am caring for my child? A counterargument is that stay-at-home mothers do contribute mightily to the economy as consumers and as part of a taxpaying couple. First time visitor. My husband always earned more. Dear Mary: If my parents die with a lot of debt, will I be responsible for paying it? The main difference between SSI and SSDI is that SSI is income based. Mary invites questions at [email protected], or c/o Everyday Cheapskate, P.O. Sorry for this mostly bad news. The Electoral College meets Monday to vote. This site is remarkably user-friendly. She never mentions pensions combined with 401(k)s. Are we part of a dying breed that collects pensions? To be eligible for Social Security disability benefits, you'll need to make $1,220 or less per month in 2019. I want to start collecting in January. © 1996 - 2020 NewsHour Productions LLC. happy2balone. I have been married for almost 27 years to my husband who currently gets a government pension and reduced Social Security benefits of approximately $440 a month due to the “off-set” clause. It might be optimal to take your own reduced retirement benefit starting now and your widows benefit at 66. Once all their debts are paid from their assets, anything that remains is divided up amongst their heirs. The Social Security Con: How Stay-at-home Moms (or Dads) Lose Their Social Security Disability 03/14/2016 02:54 pm ET Updated Mar 15, 2017 Imagine you're part of a couple (woman or man, doesn't matter) who had a career for 18 years. H. ... you won't be eligible for Social Security Disability Insurance benefits (SSDI). Please. If your expenses are more than your income, start crossing out things that are optional. Dec 11 Left: In other words, if your excess widows benefit is large enough, it means the larger of your widows benefit is likely to be larger than your current retirement benefit multiplied by 1.32. My husband handled the finances; now I'm on my own. Kotlikoff's columns and blogs have appeared in The New York Times, The Wall Street Journal, The Financial Times, the Boston Globe, Bloomberg, Forbes, Vox, The Economist, Yahoo.com, Huffington Post and other major publications. However, there is one carrier that stands out to us. Laurence Kotlikoff. Subscribe to ‘Here's the Deal,’ our politics newsletter. You don’t necessarily lose your Social Security spousal benefits after a divorce. Please check your inbox to confirm. A stay-at-home partner could earn Social Security credits, however, if the other partner employed him or her to take care of the home and children. Supplement eligible recipients debts are paid from their assets, anything that remains is divided up amongst heirs. 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