Can Social Security Disability Be Denied Because Your Spouse Makes Too Much Money

Roughly half of babe boomers say Social Security benefits volition be their main source of income in retirement, according to a survey from American Advisors Group. However, the average Social Security benefit amounts to just over $one,500 per month -- or $18,000 per twelvemonth.

If yous're depending on your benefits to assistance you get through retirement, it'southward more of import than ever to make certain yous sympathise how the programme works and so you tin can maximize your checks and alive as comfortably as possible. And there are a few sneaky rules that may trip you up and cost you big time in retirement.

Prototype source: Getty Images.

1. Exist careful if you get remarried after in life

If you're divorced, you may be entitled to receive divorce benefits based on your ex-spouse's piece of work record. You and your ex-spouse must take been married at least ten years, yous must be at least 62 years onetime, and you also cannot currently be married.

The last part is the kicker, because if you're currently receiving divorce benefits and decide to get remarried, y'all'll no longer be eligible to receive those checks.

This dominion is particularly important to those who either aren't eligible to receive Social Security benefits based on their own piece of work tape, or whose benefit amount is paltry compared to what they'd receive in divorce benefits. Some divorcees can potentially receive more than $1,000 per month in divorce benefits, so losing that money could exist devastating in retirement.

You may exist entitled to receive spousal benefits if you remarry, only if you marry someone younger who isn't qualified to start collecting Social Security nonetheless, you aren't eligible for spousal benefits yet either. If your new spouse is earning considerably less than your ex-spouse, he or she may be as well receiving much less in benefits -- which means your checks will be smaller equally well. This isn't to say you shouldn't remarry later in life, but exist sure you know how your marital status will affect your Social Security benefits.

I caveat to this dominion, however, is if your ex-spouse passes abroad before you. As long every bit you were married for at to the lowest degree 10 years, you could be eligible for divorce survivors benefits. Even if you remarry later in life, as long as you're historic period 60 or older (or historic period l or older if you're disabled), your remarriage won't touch your ability to collect survivors benefits based on your ex'southward work record. So if you're putting off marriage because it volition affect your divorce benefits, go on in mind that the rules change once your ex-spouse passes abroad.

2. Consider your spouse before waiting to claim benefits

The corporeality yous receive each month in benefits largely depends on when you lot begin challenge. File for benefits at your full retirement age (FRA), and you'll receive the full benefit amount you're entitled to. Y'all can also claim before or subsequently your FRA, but your checks will be adjusted. If you claim equally early equally possible at age 62, your benefits will be reduced by up to thirty% if you lot have a FRA of 67. However, if you delay benefits until subsequently your FRA -- upwards to age 70 -- you'll receive a bonus on summit of your full do good amount each month.

Deciding when to claim benefits not only affects your ain monthly checks, only if you're married, information technology can too bear on how much your spouse receives. If your spouse is eligible to receive spousal benefits based on your work tape, the maximum he or she can receive is 50% of the corporeality you're entitled to if you lot claim at your FRA. So if you merits earlier than your FRA, your spouse's do good amount will also be reduced.

However, the rules are slightly unlike if you lot filibuster benefits past your FRA. If you cull to delay benefits, you'll receive bigger checks, but your spouse volition not -- his or her benefit amount is yet express to half of what you'd receive at your FRA. So if you're delaying benefits in hopes that yous and your spouse volition both receive more money each month, you may be in for a surprise.

But await -- there's more. One other caveat here is that if you lot laissez passer away, your surviving spouse will receive 100% of your benefit amount as long as he or she has reached his or her FRA. And so if you delayed benefits until age 70 and then afterward pass away, your spouse volition receive more than if you had claimed at your FRA. So that'southward another cistron to keep in listen as you're deciding when to claim.

3. Yous tin undo your conclusion to claim benefits -- just it'due south tricky

In general, your decision to claim benefits is final once you've already filed. However, if you change your mind after you've begun challenge, you have one gamble to reverse your decision. There are several requirements, though, and it's not always the right choice for everyone.

First, you simply have 12 months to disengage your determination after you've initially filed for benefits. One time that window has closed, you tin can no longer withdraw your application. You also only have one opportunity to change your mind in your lifetime, then use this chance wisely. Finally, if you do change your mind, you must repay all the benefits you lot've already received up to that point. This is the tough part for many people, because if yous've waited several months or well-nigh a twelvemonth before reversing your determination, yous'll likely need to pay back thousands of dollars.

There is i other option, though, if you've already started claiming and have decided you lot'd rather filibuster benefits: You lot tin temporarily suspend your benefits. You lot're eligible to suspend your benefits if yous've reached your FRA but are under age lxx. By suspending your benefits, yous'll end receiving monthly checks until you cull to offset claiming once again, at which betoken your benefit amount will be adapted to make upward for the fourth dimension yous weren't receiving any benefits.

When you suspend your benefits, you lot'll receive bigger checks than if you'd simply continued collecting your prior benefit amount. Even so, your checks won't be as large every bit if you lot hadn't already started challenge benefits in the commencement place.

Social Security benefits tin exist complex and confusing, and there are plenty of catchy rules that can touch how much you receive each month. But the more than you empathize about how the program works, the meliorate the decisions you tin can make and the more than money you'll receive.

Source: https://www.fool.com/retirement/2020/02/19/3-sneaky-social-security-rules-that-can-make-or-br.aspx

Posted by: rosariosurnoted.blogspot.com

Share this post