This is the final review of Social Security Benefits and actually a very unique one as this portion speaks to a VERY small group of people who are luckily grandfathered in under old laws and due to that fact have one additional option/decision/possible technique.
Restricted Application Technique Benefit Option for Married Couples Meeting Grandfathered Age Criteria
While for a small and quickly shrinking group of folks due to the law change, the Grandfathering of a loophole technique/option makes this worth review :
Most applicable when two wage earners
Age 62 or older by end of 2015
Must not have filed Social Security yet
Restricted application for spouses only
This age group has the option to file on their spouse – as a reminder all others must always file on their own benefit first
Must be full retirement age before able to use technique
One member of couple is drawing social security already
Can file on spouses benefit and delay his/her own benefit to let benefit grow
As we near the end of the Social Security Retirement Benefits portion (Medicare up next), the final Three Parts will be directly related to spousal benefits. Spousal benefits are EXACTLY the same no matter gender, so insert your preference for the easiest understanding.
Parts (8-10) will deal with the status of the spouse and how it effects retirement benefits for the other spouse:
Living
Deceased
Divorced
As just a heads up, each section will become more detailed and complicated – so let’s get started on the various spouse benefits depending on the other’s status!
In this clip, it becomes very apparent that Divorce and Deceased Ex Spouses carry burdens by us the consumer to check with Social Security for possible increased benefits – also of note there IS a disadvantage to remarrying a lower income spouse :
Divorced Spouse must have been married 10 years, unmarried and meets all the benefits of current/regular Spouse to draw benefits – and is still unmarried.
Ex Spouses DO NOT effect in any way other benefits for others – Ex Spouse or new spouse’s benefits – Technically someone could be married and divorced as many times as longevity would allow, and as long as each time they were married 10 years all would receive benefits and NOT effect any others benefits!
If get remarried, cannot draw benefits on a living Ex husbands benefits.
Example: Married to high income earner and get divorced, remarry to a low income earner, likely will reduce benefits spousal benefits if yours are not greater on your own.
Near end of audio – important statement – If you are divorced, especially if your former spouse has remarried and the current spouse is drawing a spousal benefit, Social Security likely has no record of your marriage to that spouse – see next point
Should your EX spouse pass away, you may be entitled to and increase in benefits if you meet the requirements of current wife of widow.
Because of the first two points, you may consider calling Social Security to confirm your Ex is still living, if this is not the case, you may be entitled to an increase in benefits- again, something Social Security would have no idea due to remarriage of your Ex
Dealing with Divorced Spousal benefits carriers obligations in order to maximize Social Security Benefits …
Be sure to listen to the audio below from the event, it is very informative!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments may be appropriate for you, please consult your financial advisor prior to investing!
Background
The is the vocal portion of J.K. Financial, Inc. a Dallas Texas Based Fee Only Total Wealth Financial Planning Firm. Founded by John Kvale, a Dallas Texas Fee only Financial Planner and Total Wealth Manager.
