This would bring their take home up to 3000 johns

Info icon This preview shows pages 15–17. Sign up to view the full content.

benefit, then Sally could increase her benefit to $1,000 (50% of John's benefit) as a spousal perk. This would bring their take-home up to $3,000 (John's $2,000 plus Sally's $1,000) every month. What about benefits for someone who is divorced? A divorced person is entitled to spousal benefits from Social Security if the marriage lasted at least 10 years and they remain unmarried. Benefits for a divorced spouse also are not available until age 62 and they are reliant upon the ex-spouse being fully insured. There are also certain benefits for survivors of a deceased person who was covered by Social Security. According to the SSA's December 2017 Monthly Statistical Snapshot, retirement benefits comprise 73.5% and survivor benefits comprise 9.7% of all benefits paid. The remainder is paid to Social
Image of page 15

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Security Disability recipients. You can monitor the current Statistical Snapshot here if you are interested. (Links to an external site.)Links to an external site. Q: Bill reached his NRA six months ago. He is now 66 1/2 years old and has decided that it is time to retire from his job of 25 years and file for Social Security benefits. He is fully insured. His wife, Alex, is 60 years old and she has not worked for the last 3 years while taking care of her mother. What are Alex's options relative to Social Security filing? A: She must wait until she reaches at least age 62 before she can file for spousal benefits Q: Jeremy and Becky divorced 5 years ago after a hot and cold 25-year marriage. Jeremy remarried last year. Becky never remarried. They are both 64 years old, and Jeremy has already filed for Social Security benefits. His new wife is also receiving spousal benefits against his employment record. What are Becky's options? A: She can file for spousal benefits now. Survivor Benefits Death is a fact of life. It is a door that we will all walk through someday, although some people leave us far too soon. Social Security has a built-in safety mechanism to help people in need who have experienced the loss of a parent or spouse under certain circumstances. The first benefit available to the surviving spouse of a fully insured worker is a whopping $255 one- time lump sum payment. The idea is to help defray burial costs, but this small dollar amount will not offset too much of the expenses from a funeral home. Still, it is a nice idea. The real benefit for the surviving spouse is that they will be eligible for full spousal retirement benefits as if the worker were still living. The full benefit is available to the surviving spouse once they have reached their NRA. They can also receive a reduced benefit as young as age 60 (not 62) or as young as age 50 if they are disabled. Another layer of benefit for the surviving spouse will apply if they are also caring for a minor child of the deceased worker. The child must be eligible for dependent children’s benefits and be either younger than age 16 or be disabled themselves. If a surviving spouse is caring for a dependent child of the deceased, then the surviving spouse is eligible to receive spousal benefits at any age as long as the requirements on the child remain met.
Image of page 16
Image of page 17
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '14
  • VOSS,JAMESA
  • Cash balance plan

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern