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Will Taking Spousal Advantages Have an effect on My Social Safety Profit Price?

Right now’s Social Safety column addresses questions on whether or not spousal advantages can have an effect on later retirement advantages, submitting for each retirement and survivor’s advantages and whether or not Social Safety is transferring fee days. Larry Kotlikoff is a Professor of Economics at Boston College and the founder and president of Financial Safety Planning, Inc.

See extra Ask Larry solutions right here.

Have Social Safety questions of your personal you’d like answered? Ask Larry about Social Safety right here.

Will Taking Spousal Advantages Have an effect on My Social Safety Profit Price?

Hello Larry, I’ve utilized for my Social Safety retirement advantages to start later this 12 months after I flip 70. Once I reached my FRA in 2016, I utilized for my spousal advantages. Will that impression my PIA? I obtained the Social Safety Discover of Award and it didn’t embody any COLAs after my spousal advantages started.

I’ve manually decided my PIA as of my FRA and it is the identical as what they advised me it was again in 2018. I’ve known as them they usually mentioned COLAs are just for individuals receiving the advantages. This does not appear proper — is it? Thanks, Sarah

Hello Sarah, Gathering spousal advantages has zero impact by yourself main insurance coverage quantity (PIA). PIAs are mechanically up to date to incorporate any value of dwelling (COLA) will increase that happen after an individual reaches 62, so it is arduous for me to imagine that your retirement profit fee would not embody the current COLAs.

And by the way in which, such COLAs are credited even when the particular person is not but drawing their advantages. So what the Social Safety worker you spoke with advised you is inaccurate. In any occasion although, for those who imagine that your profit fee is inaccurate, you may file an attraction. Finest, Larry

Can I Proceed To Draw My Personal Advantages And Then Declare 100% Of My Widow’s Profit Once I Attain FRA?

Hello Larry, My husband handed away not too long ago. He waited till he was 70 to say his retirement profit. He was 10 years older than I’m, so I claimed my a lot smaller profit after I turned 62. I’ve one other two plus years earlier than I’m FRA. Once I known as SSA to debate my survivor’s profit selections, I requested if I had the choice of ready till I used to be FRA, persevering with to obtain my profit till I may declare 100% of my widow’s profit. The SSA one that was aiding me appeared to not perceive my query. She advised me I’d in all probability be receiving “90 one thing p.c” of his profit, so what was the difficulty? What’s the coverage? Do I’ve this selection?? I nonetheless haven’t obtained my letter telling me my new profit. Thanks, Trisha

Hello Trisha, I am sorry on your loss. Sure, you may proceed to attract simply your personal retirement profit till full retirement age (FRA) after which declare unreduced widow’s advantages. You may then be paid your widow’s profit, equal to husband’s full profit fee together with the delayed retirement credit (DRC) he earned by ready till 70 to say his advantages. You will not get each your personal quantity and your husband’s full quantity, although simply the upper of the 2 quantities.

By the way in which, for those who have been born in 1957 then your FRA for widow’s advantages is the month you flip age 66 and two months. The FRA for widow’s advantages for individuals born in 1957 is 4 months sooner than their FRA for retirement advantages. Finest, Larry

Is Social Safety Shifting Everybody’s Fee Dates?

Hello Larry, Is social safety transferring everybody dates to obtain it or are they leaving it the identical? I cant afford to alter my date from the third which I’ve been getting it to a different date which is down the road. I usaally pay all my payments on the third of the month in any other case in poor health have to alter every thing round. Please let me know if that is true or not. Thanks, Justin

Hello Justin, To not my information. What I can inform you is that the foundations concerning when an individual must be paid their month-to-month advantages have not modified since 1997. Based mostly on these guidelines, most individuals at the moment are paid both on the second Wednesday of the month, or the third or fourth Wednesday relying on their day of delivery.

The one individuals who ought to nonetheless be receiving their profit funds on the third day of the month are individuals who have been already receiving advantages previous to Could 1997, or beneficiaries who’re dwelling exterior of the nation, or people who find themselves eligible for Supplemental Safety Revenue (SSI).

So for those who meet one of many above exceptions that permits you to be paid on the third of the month, then I do not know of any cause your fee date would change. In any other case, for those who’ve been getting paid on the flawed day, then I suppose it is doable that Social Safety might now be correcting their error. Finest, Larry



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