By SYLVIA GORDON
Guest Columnist
Your full retirement age (FRA) is based on your year of birth and is between age 66 and 67. It is not age 65, contrary to popular belief.
You are eligible to get 100 percent of your Social Security benefit at FRA. If you delay past FRA, the government gives you a strong financial incentive. For every year past your FRA age that you delay drawing benefits, you’ll earn a guaranteed 8 percent per year.
Many men with wives who were homemakers want to beef up their spouse’s eventual retirement by bolstering their own. A homemaker who never earned enough to draw her own Social Security benefits can draw up to 50 percent of her spouse’s benefit – “up to 50 percent” of his benefit at his FRA. If he delays till age 70, that in no way benefits her while he is alive. She is still only eligible to get up to 50 percent of the amount he would have gotten at ages 66 and 67.
I’ve had many men tell me their plan is to delay drawing their own Social Security retirement benefits until age 70 to help bolster their wives’ retirements.
In this scenario, if your husband is trying to help you, he may actually be preventing you from drawing any Social Security. A wife cannot draw benefits off her spouse until he starts drawing his own benefits. By delaying, he prevents her from drawing off him. If she has at least 10 years and 40 credits, she can draw her own retirement, even though it may be smaller. Once he does begin drawing, she can then switch to her higher, spousal amount.
The husband who wants to help his wife earn more Social Security can do so by earning more in his lifetime. In 2022, the most that you can earn that is subject to FICA taxes is about $150,000. If you earn a million dollars this year, it won’t boost your Social Security.
The thoughtful husband above who delayed drawing his own Social Security until age 70 will help his widow. If he dies before his spouse (also applies to qualifying former spouses), she will be eligible for up to 100 percent of his – including the extra money he earned by delaying drawing until age 70.
The SSA offices are under a large backlog due to COVID. It takes about two months to get an appointment. If you want to claim any type of Social Security benefit, contact the SSA three months in advance. If you want to claim spousal benefits, you’ll need to provide proof of your marriage (and divorce, if applicable). To make it just a bit more complicated, the government won’t accept Xerox copies. You must have original documents or certified copies from the original issuing authority. This can take time to acquire, so start early.
Don’t guess about your Social Security retirement dollars. You can set up a free account at ssa.gov and see an estimate of how much you will be able to draw. If you are trying to estimate your spousal share, have your spouse set up an account. If half of his amount at his FRA is more than all your benefit, you’ll be claiming off of your spouse. But keep in mind, that you cannot draw off your spouse until your spouse starts drawing his own Social Security.
Sylvia Gordon is co-founder of The Medicare Family, headquartered in Noblesville, where she educates thousands on Medicare and Social Security in all 50 states. You can learn more at themedicarefamily.com.