If you choose to deplete other assets in favor of optimizing your Social Security benefit, remember that you can’t leave your SS benefit to someone else. Some of your survivors may be elligible for Survivor Benefits, but you do not get to choose who these survivors are. The individuals who are entitled to survivor benefits are predetermined by law. Who can receive survivor benefits? Your widow or widower- Can receive full benefits at their full retirement age or reduced benefits as early ...
Full Answer
Can Social Security benefits be taken away?
Social Security benefits are vital for many people's financial security, but there are ways that you can lose the monthly checks you've already started to receive. By being aware of what can result in having your benefits taken away, you can figure out the best course of action for your particular situation. The Motley Fool has a disclosure policy.
Can the Social Security Administration take my benefits?
Tens of millions of Americans rely on their Social Security benefits, and many are in a position in which they can't really afford to lose their monthly checks. Yet there are a few situations in which the Social Security Administration can and will take away benefits for certain recipients.
Can you retire without social security?
“Without Social Security, you cannot sniff retirement,’’ says Stevens. Because he retired at 62, his Social Security check is less than had he waited, but the $1,400 monthly payment enables the couple to pay the bills and enjoy leisurely pursuits.
What happens when the SSA decides you're no longer eligible?
If the SSA decides that your health has gotten better, then it can determine that you're no longer eligible to receive benefits due to a disability. Typically, the SSA does a review at a certain time interval that varies according to the expectation that your condition will or can improve.
Who can you leave your Social Security benefits to?
Social Security survivors benefits are paid to widows, widowers, and dependents of eligible workers. This benefit is particularly important for young families with children.
What happens to your unused Social Security benefits?
Any unused money goes to the Social Security trust funds, not a personal account with your name on it. Many people think of Social Security as just a retirement program. Most of the people receiving benefits are retired, but others receive benefits because they're: Someone with a qualifying disability.
When a parent dies who gets Social Security?
Within a family, a child can receive up to half of the parent's full retirement or disability benefit. If a child receives Survivors benefits, he or she can get up to 75 percent of the deceased parent's basic Social Security benefit.
Can you leave Social Security?
If you change your mind about starting your benefits, you can cancel your application for up to 12 months after you became entitled to retirement benefits. This process is called a withdrawal. You can reapply later. You are limited to one withdrawal per lifetime.
At what age is Social Security not taxable?
However once you are at full retirement age (between 65 and 67 years old, depending on your year of birth) your Social Security payments can no longer be withheld if, when combined with your other forms of income, they exceed the maximum threshold.
Can a child collect a deceased parents pension?
The new pension rules have made it possible to leave your fund to any beneficiary, including a child, without paying a 55% 'death tax'. Many people want to leave their assets to their family when they pass, and a pension is now a tax-efficient way to do this.
Who gets mom's Social Security benefits?
Social Security's Mother's or Father's Insurance Benefit is federally funded and managed by the U.S. Social Security Administration (SSA). These benefits are paid to the surviving spouse or surviving divorced spouse of an insured worker.
Can my ex wife collect on my Social Security if I remarry?
Can I collect Social Security as a divorced spouse if my ex-spouse remarries? Yes. When it comes to ex-spouse benefits, Social Security doesn't care about the marital status of your former spouse; it only cares about your marital status.
Can I collect both my Social Security and my deceased spouse's?
Social Security will not combine a late spouse's benefit and your own and pay you both. When you are eligible for two benefits, such as a survivor benefit and a retirement payment, Social Security doesn't add them together but rather pays you the higher of the two amounts.
How Long Will Social Security Last?
According to the 2022 annual report of the Social Security Board of Trustees, the surplus in the trust funds that disburse retirement, disability and other Social Security benefits will be depleted by 2035. That's one year later than the trustees projected in their 2021 report.
What is the maximum Social Security benefit?
The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2022, your maximum benefit would be $3,345. However, if you retire at age 62 in 2022, your maximum benefit would be $2,364. If you retire at age 70 in 2022, your maximum benefit would be $4,194.
What are the rules for Social Security?
To be eligible for most types of benefits (such as benefits based on blindness or retirement), you must have earned an average of one work credit for each calendar year between age 21 and the year in which you reach age 62 or become disabled or blind, up to a maximum of 40 credits.
What happens when you reach full retirement age?
When you reach full retirement age as defined by the Social Security Administration and your disability benefit converts to a retirement benefit, said Jean McAllister, a certified financial planner with Peapack Private Wealth Management in Bedminster.
What is the number to call for Social Security?
You should contact the Social Security Administration with additional questions so it can advise you based on your personal records. The number is (800) 772-1213.
Can a child receive Social Security?
There are no provisions for willing Social Security benefits to a surviving adult child, McAllister said. “The Social Security Administration does provide for survivor benefits for spouses and for minor or disabled adult children,” she said. “Surviving children are entitled.
Can an adult son receive disability if he is 19?
We’re going to assume your adult son is over the age of 19 and does not currently qualify for a child’s benefit based on your disability or based on his own disability. If these assumptions are correct, he would not qualify for any benefit when you transition to retirement benefit, she said.
What happens if you restart your 401(k) at age 70?
If you restart it before age 70, it will receive fewer delayed retirement credits, but it will still be larger than it was when you reached full retirement age. Delayed retirement credits are allocated on a monthly basis, but add up to an 8 percent increase per year.
How long do you have to be married to collect on your ex?
If collecting on an ex, you need to have been married at least 10 years. If there is a spouse or ex-spouse on which you can collect and you do withdraw, you can restart your own retirement benefit at a roughly 25 percent larger value at age 70. If you restart it before age 70, it will receive fewer delayed retirement credits, ...
Can I collect Social Security based on my own work record?
I’m also very sorry to say that you aren’t able to collect anything more based on your own work record since Social Security will give you the larger of either your own retirement benefit or your widows benefit. And even if you wait until you are 70 to collect your retirement benefit, when it will be as large as possible, it will, it seems, still be below your widows benefit.
Is the earnings test a part of Social Security?
Even for those under full retirement age, the earnings test can be far less of an issue than is commonly believed. The reason is that benefits, be they retirement, spousal, or widow (er) benefits, lost due to the earnings test are subject to what Social Security calls “the adjustment of the reduction factor” or ARF.
Does disability change at full retirement age?
Larry Kotlikoff: At your full retirement age (66 and 10 months), your disability benefit will automatically convert into your retirement benefit unless you withdraw it. Your benefit amount won’t change. The only thing that will change is the name of the benefit.
Can I withdraw my retirement benefits?
Note that “withdrawing” your benefit is not the same as suspending it. As I have discussed, if you are or were married, you may want to withdraw your retirement benefit when you reach full retirement age in order to collect a full spousal, a full widower’s, a full divorced spousal, or a full divorced widower’s benefit based on the work record of a current, ex or deceased spouse.
Is Social Security a big issue?
But Social Security is only one of the big issues you need to consider in facing retirement. Medicare is another biggie. Phil is going to help you decide when to enroll for particular parts of Medicare, how to decide which Part D prescription drug insurer to use, the cost to some people of not enrolling early for Medicare Part B, the crazy way in which Medicare Part B premiums rise with your income, the new Medicare tax on the asset incomes of those with high adjusted gross incomes, and more…
Can Social Security help you if you owe child support?
If you believe your benefits are being garnished in error, Social Security can’t help you. You’ll have to take it up with the government body that says you owe the money — for example, the IRS, or the state court overseeing your child support. Garnishment protection is stronger for Supplemental Security Income (SSI).
Can Social Security be garnished?
Social Security benefits and Social Security Disability Insurance (SSDI) payments can be garnished to pay child support and alimony; court-ordered restitution to a crime victim; back taxes; and non-tax debt owed to a federal agency, such as student loans or some federally funded home loans.
What is the normal age to retire?
What Social Security calls normal or full retirement age is somewhere between 66 and 67, depending on the year you were born. At that age, you can claim everything you’ve got coming to you based on your work record.
How much of your spouse's benefit can you get if you claim it early?
If you claim a spousal benefit early — say at 62 — you may receive as little as 32.5% of your better half's benefit.
What is the first 750 of Social Security?
The first $750 of your monthly Social Security will always be safe, but what's called an offset could reduce additional amounts. An offset occurs when a legitimate claim is filed against your benefits to pay off a debt. Offsets usually stem from back taxes, unpaid alimony or child support, and defaulted student loans.
How much did Social Security scams cost?
From March 2018 to March 2019, more than 76,000 people reported Social Security phone scams that cost them $19 million, the Federal Trade Commission says.
What happens if you take unemployment early?
If you take benefits early and keep working, your income might further reduce the amount you can get. Limits on earnings are adjusted each year to reflect national wage trends.
Do retired people get lower Social Security?
fizkes / Shutterstock. Some retirees on pensions receive lower Social Security payments. Benefits can be reduced for retired government workers, teachers, railroad workers and employees of foreign companies. It typically happens if you collect a pension and if your employer didn't pay into the Social Security system.
Do seniors have to pay Medicare Part B premiums?
But the rule doesn't apply to a very small percentage of seniors whose higher incomes require them to pay greater Medicare Part B premiums. Those costs can eat into Social Security benefits, particularly whenever your income rises and crosses a threshold where an increase in Medicare premiums kicks in. 9.
When do child benefits stop?
Those spousal benefits come irrespective of the spouse's age. However, when the child is older than the age limit, then those child benefits stop. Moreover, a child's reaching age 16 will typically halt the parent's ability to receive benefits.
When do children get Social Security?
When a child reaches a certain age. Certain children and those parents who care for them receive family benefits from Social Security, but those benefits hinge on the age of the child in question.
Can Social Security take away my monthly check?
Tens of millions of Americans rely on their Social Security benefits, and many are in a position in which they can't really afford to lose their monthly checks. Yet there are a few situations in which the Social Security Administration can and will take away benefits for certain recipients.
Does the SSA review your Social Security?
Typically, the SSA does a review at a certain time interval that varies according to the expectation that your condition will or can improve. Social Security benefits are vital for many people's financial security, but there are ways that you can lose the monthly checks you've already started to receive.
How long after you turn 21 can you collect Social Security?
Your Social Security benefit is based on your top 35 earning years after you turn 21. Social Security benefits are based on your top 35 earning years after you turn 21. This creates two possibilities for how your Social Security benefit will be calculated:
What happens if you file for Social Security before you hit FRA?
If you file for and begin receiving Social Security benefits before you hit your FRA, your lifelong Social Security benefit will drop (and perhaps by a LOT). In this situation, you will begin receiving Social Security benefits earlier in retirement, but at a reduced amount. The second is if you file for benefits but continue working ...
How many years of earnings do you have to have to be 0?
If you haven’t accrued 35 years of earnings, each year you fall short will count as $0 earned for that year.
Does Social Security reduce after retirement?
After you’ve passed your full retirement age, no amount of income you earn will reduce your benefits . Keep in mind however, the reduction in benefits prior to FRA are never fully lost. The benefit you receive at your full retirement age will be increased to offset the reduced Social Security benefits from your earned income.
