Stopping Work at 64- Effect on Benefits

Tyler from Arizona:

If I stop working completely at age 64 and earn no money until I reach my full retirement age of 66, will I receive the same benefit amount that I would receive if I worked and earned money from age 64 to age 66? Thank you for you consideration and assistance.

ANSWER: Tyler, you must have heard the old expression that there is no such thing as a free lunch.  Almost the same with social security benefits!  The benefit amounts are based on an average of your monthly earnings, 35 highest years out of 40 .  So if your last two years earnings would be higher than earlier years, your monthly benefit amount would be less. If they are the same or less than all prior years, then there would be no effect.  Note, however, that earlier years are indexed for inflation before being used in the computation, so that even though earnings in say 1980 were lower than you're making today, after the inflation adjustment, they might be higher.  I suggest you get two benefit estimates, one with your earnings for the two years and one without them.  Also, make sure you file a protective filing statement with the SS office so you don't lose out on any benefits in case you decide to make an application. I attach a link to the official SS benefit calculator site so you can put in the different scenarios.
http://www.socialsecurity.gov/retire2/AnypiaApplet.html

Divorced Wife's Benefits

Justine from North Carolina:

I was divorced after 14 years of marriage (d. 1979). I started my social security at age 62. My ex-husband retired in 2008 at age 66. Are there any benefits for me now from his SS?

Yes Justine, it is possible, assuming you have not remarried, and if your primary insurance amount (your unreduced benefit) is less than one-half of your ex's primary insurance amount.  In that case, you can receive the difference as a divorced wife.

Medicaid and Married in Nevada

Sharon from West Virginia:

If a person only gets a small amount of medicaid can they go to Nevada and get married, they are unhealthy and need to keep their medicaid card? Ty

ANSWER: I hope your health improves Sharon, and your husband-to-be, too. Your question is not really about social security, but Medicaid, which is a federal/state health benefit program for the poor administered and partially funded by the several states, and partially funded by the federal government. Medicaid is not Medicare, which is federal health insurance for social security beneficiaries.  If you are getting Medicaid because you receive SSI payments, a cash program for the poor who are disabled (and aged and blind), then your new husband's income and assets will be considered and those payments could be reduced or stopped, and in many states Medicaid then stops too.  SSI is a federal welfare program, and is administered by the Social Security Administration, so you should go to the Social Security office. Make sure you have your figures with you, namely the amount of your beau's income and assets as well as yours. Because the Medicaid program is administered and partially paid for by the states, the rules can vary from state to state for that program.  You will have to check with the Social Services departments of both states.

Common Law Marriage & Disabled Adult Grandchild- Two Questions

Ronald from Texas

I have two or three items that I need answers 1)my mother wants to know if she qualifies for spouse benefits she was common law married for almost 11 years. 2)my mother is taking care of her grandaughter for almost 33 years,she is completely handicapped.Is she eligable for benefits and care benefits.



ANSWER: Ok Ronald, here you go with two answers.

1- Social Security law uses state law to determine whether a person is married. Texas does recognize such marriages. Since your mother is married for more than one year, she may be eligible.

2- Social Security provides benefits for disabled adult children on their parents' accounts in the event of a parent's entitlement to retirement or disability benefits, if if the parent dies. A grandchild can receive on the grandparents' account only if the parents are deceased or totally disabled at the time the grandparent dies or becomes eligible, and must be dependent on the grandparent. The disabled grandaughter may be eligible for SSI payments, which is a federal welfare program based on need, provided the child's income and assets are below certain levels. This program is administered by the Social Security Administration. I would suggest that your mother file an application on behalf of the grandaughter with Social Security as soon as possible.

Remarried Widow

Charmaine from South Carolina



Dear sir, i am going to try to collect on my late husband's ssi benefits. the trouble is i am 61, married, he died in'86. but a rep. from s.s. told me i should apply anyway because i was not made aware all that time i might be eligible. can you give me some advice as to if i might still be qualified? thanks, Mrs. F.



ANSWER: Well Mrs. F, if you remarried after age 60, you can be eligible on your departed husband's account for Social Security widow's benefits. If you think you may qualify, you should take the SS rep's advice and apply, and you shouldn't wait because there is no retroactivity for such an application. This means that you cannot get benefits for any month before the date of the application. But if you filed a “protective filing statement” the date you filed that will be used as the application date. I will be posting an article very soon about using Protective Filing Statements to maximize the payout of benefits. By the way, you mentioned your husband's “SSI” benefits. I assume, maybe incorrectly, that you meant SSA rather than SSI, which is a federal welfare program based on need, not SS work credits. You can't collect SSI on a SS account, it strictley is nased on your income and assets, as well as being aged, blind or totally disabled.

Divorced Fireman

Leslie from Arkansas


My father worked as a city fireman for 25+ years. He paid into a pension and did not pay into Social Security. My mother worked for 20+ years and did pay into Social Security. They were married for 20+ years and then divorced and both remarried. My mother is at retirement age but is not drawing off of what she put in, but she does draw off her present husband's account. My father is at retirement age. Is he entitled to draw off her account?



ANSWER: No, because he is married, but you gave it a nice try Leslie!

Divorced Wife Possible Extra Benefits

Question: My ex husband, Earl G. M., age 76, received approx $2,000 a month after Medicare..........and, I, Evelyn C. M. am receiving $600 a month. I am 73 years old and the $600 is my only income. Would it be possible for me to receive more from Social Security?
Evelyn


Answer: Well Evelyn, it depends on just what kind of benefits you are receiving. You don't give enough information. Are you receiving the $600 on your own earnings record or as a wife/ex-wife? If you are receiving as a wife or ex-wife , are you also collecting on your own account? (Probably). If the $600 benefit is based on your ex-husband's account - a divorced wife's benefit - then that would most likely be all you can collect for social security benefits.

But if you are collecting only on your own account, you may be eligible for some extra money on your ex's account too. It depends on both your and his primary insurance amounts (PIA). This is the amount before any age reduction. A wife's benefit (and an ex-wife's) is determined by subtracting the wife's own primary insurance amount from one-half of the primary insurance amount of the husband. So if your ex-husband's PIA is $2,000, one-half is $1,000. If your PIA is $600, you can collect the additional $400 difference as an ex-wife. But, you must have been married at least 10 years.

I hope this helps you. If you think you may be eligible, you should apply without any further delay. You could lose some benefits because in your case an application cannot be retroactive for any more than 6 months, so get going! If you can't get to the SS office right away, send a letter telling them you want to claim ex-wife's benefits. This will protect your filing date.

One other avenue you may explore if you have limited assets and little income, is Supplemental Security Income payments, which are also handled by SSA. These are designed for people over 65 (as well as for the blind and disabled) in financial need. Eligibility depends on your assets (not counting your home), your income and your living arrangements. If your only income is the $600 you should question SS about you eligibility. Some states add a supplement to these federal payments. And if you are eligible for SSI you may also receive Medicaid, which pays for some things not covered by Medicare.

I wish you all the best.