Some Key Information Which You Need To Know About Social Security Spouse Benefits

When most of the people think about Social Security, they normally think of retirement benefits. But about 1/5 of all Social Security benefits are spousal or survivor benefits, therefore when you're planning for retirement, it's important to think about the fact that you or your spouse might collect Social Security survivor benefits or spousal benefits at few points in their life.

Here, we're gonna discuss the basics of Social Security spousal benefits.

Basically, a married person could get a spousal benefit equal to half of her husband's basic benefit, also called the PIA (primary insurance amount).

Social Security spouse benefits normally come into play when a spouse takes time away from work to raise a family, and thus has very little or no earnings.

Calculating the Spousal Benefit:

The spousal benefit is actually a combination of both spouses' benefits. If a married person has enough credits to be eligible for Social Security on her own, then her credit will be figured first. If it's lower than her spouse's benefit, she will get her benefit along with an adjustment to equal half of her husband's primary benefit.

When you should Start the Spousal Benefit:

You can apply for the spousal benefit as early as age 62, as long as the working or more earning spouse is eligible and has applied for benefits.

It does not good for the lower earning spouse to wait beyond her full retirement age to apply for spousal benefits since the spousal benefit won't earn credits beyond the complete retirement age. Thus, spouses applying for the spousal benefit should do so as soon as they reach full retirement age.

How Early Retirement Impacts The Spouse Benefit:

Spouses who apply for the spousal benefit before she is complete retirement age will receive a reduced benefit exactly like she would if she applied for her own Social Security benefit before complete retirement age. This reduced benefit is permanent, even though she takes her spousal benefit at the age of 62 and switches to her own benefit at full retirement age.

Other Considerations:

Persons who begin collecting retirement benefits before full retirement age can just earn up to a definite amount before they've to pay back part or all of their Social Security benefits. In '09, that amount is $14,160. If you earn more than $14,160, you have to pay back $1 for every $2 you earned over the limit.

This earnings test applies to spousal & survivor benefits and retirement benefits, so if you expect to work before you reach full retirement age, you must delay your retirement and spousal benefits.

In this article, I've referred to the wife as the lower earning spouse out of ease. But, in today's world, it's not uncommon for the wife to be the higher earning spouse. The good news is that Social Security is gender neutral, so the Social Security spouse benefits can apply to the wife or husband, and the higher or lower earning spouse.

Social Security Widow Benefits - What Happens To Your Social Security Benefits When A Spouse Dies
When Social Security was first established, it only paid retirement income to workers who qualified. It was later amended to include benefits for spouses and survivors, which made it more of a family or insurance plan, instead of just a retirement plan.

Saving For Retirement- It's No Longer Your Parents Retirement
Getting ready for retirement is a lot harder than it used to be. Companies no longer offer pensions and many are reducing or eliminating matching contributions to 401K plans. In addition, Social Security benefits are expected to be smaller and you may have to wait longer to collect them.

Social Security Eligibility Rules: Can A Full-Time Homemaker Get Social Security?
When Social Security was first established, most families only had one bread-earner, and only the working spouse qualified for retirement benefits. This caused financial difficulties for the spouse who didn't work (and therefore didn't qualify for Social Security) if the working spouse passed away first.

How To Submit An Application For Social Security Benefits
Social Security was originally created to provide retirement benefits to workers, but the program has grown tremendously and now Social Security provides disability benefits, death benefits and other family benefits in addition to retirement benefits.

Making Use Of Government Awards To Make Improvements To Your Property.
Being on the property ladder whether renting or owning your own home it can be a very expensive ordeal.

With Regards To Social Security Impairment: What You Need To Be Aware Of Before Filing For Disability Benefits
Most people think of retirement when they hear Social Security, however Social Security provides benefits to people who are disabled as well. The list of requirements that must be met for Social Security disability benefits is pretty long, and many people don't meet those requirements.

3 Ways A Financial Planner Could Help You Realize Your Financial Goals
Many people wonder exactly what a financial planner does, and how they can help you. Here are just three ways a financial planner can help you achieve your financial dreams and goals.

3 Key Reasons To Use A Fee Only Financial Consultants
There are three different types of financial advisors: the commission broker who sells a product for a commission, the fee-based advisor who provides investment management for a percentage of the assets invested, and the fee only financial planner who provides a comprehensive financial plan for an hourly fee.