Another SSI question

[BC38]

I always understood that when you start taking your SSI, you get to make 1 of 3 choices.
1) Take a MAX benefit that will only last for your lifetime, OR
2) Take around a 25% reduced benefit to leave a benefit behind for your spouse that is equal to half of what you were collecting, or
3) Take an even further reduced monthly payment - around 35% less than your max - and then your spouse continues collecting that same amount after you pass away.

So here's my question. I was reading the other day that if both spouses are drawing their SSI, and one dies, the survivor gets a choice to continue drawing their own OR draw that of the deceases spouse - whichever is higher. Is that correct?

If that is how it works and both spouses have roughly equivalent benefits coming (like my wife and I) then there would obviously be no point in taking anything less than the max benefit - because the surviving spouse is only going to get one, not both theirs AND something from their spouse's benefits.

 

[Onomea]

BC38, I think your understanding is incorrect. What you are describing sounds like a private/corporate pension to me.

 

[BC38]

BC38, I think your understanding is incorrect. What you are describing sounds like a private/corporate pension to me.

I know that is how private pensions work.
Which part is incorrect in regards to SSI?
The part about having to choose benefit level 1 or 2 or 3?
Is there no such choice to be made?

 

[LoboGunLeather]

Social security has provisions for spousal benefits, and it may be advantageous for some to claim a spousal benefit rather than their own earned benefits. Beyond one's lifetime there are provisions for survivor benefits (spouses and children). I am not aware of any formula applying percentages, but I am not an expert on social security benefits (only a recipient); we have a couple of good financial advisers who have provided some guidance on these issues.

 

[Toyman]

I made more money than my wife and accordingly I draw more SS than she does. When I die she will move up to my SS but if she dies before me
I will loose what she is drawing.

 

[Onomea]

I don't think you are offered choices that would affect your spouse's benefits. When you choose to receive your benefits will affect your own benefits, but I think your spouse's choices, if he/she is receiving benefits based on your SS record, will affect his or her benefits.

I think survivors benefits simply are what they are.

I think one must choose to either receive benefits based on one's own record or on one's spouse's record.

But, I am no expert, am not certain I am correct, and advise talking to someone who is better informed than I am.

 

[df06]

What Toyman said is my understanding as well.

 

[BC38]

So basically there are only "survivor" benefits if the spouse is eligible for less on their own SSI. Interesting. I always assumed it was similar to pension benefits, that you could leave a benefit for a surviving spouse by taking a lesser benefit yourself.
Good to know that's how it works.

 

[raljr1]

Toyman is correct.

Robert

 

[jeffrefrig]

This subject never came up during my retirement preparation approximately 1 year ago, as my wife is 8 years younger than me...wish I could help. But, God as my witness, 40 years ago (when I was 23 or so) I never thought I would live long enough to even think about retiring or talking about it! But here we are folks!
BC38, I suppose you have a SS online account you can log into and try to navigate through it to get answers to your questions (good luck with that!)
At least that's what they tell you a couple hundred times while you're on hold waiting for a nice, cheerful, helpful human being answer all of your questions and going above and beyond all your expectations!

 

[crstrode]

The only choice you have is at what age you start collecting the benefit. The longer you wait, the more each check will be. I did not say the more you will get . . .

In the long run, and on the average, the total amount you collect will be the same if you manage to live to the age that the mystics have predicted. If you are lucky to live longer, you are lucky . . . Not necessarily wealthier, but lucky ��

My wife is 6 years my junior, and did not earn enough to get the maximum like I did. She is going to start drawing hers as soon as possible. When I bite the dust, she will receive the survivors benefit that will be larger than her's alone. In the interim, if I live long enough, we will be living the high life with my small check and her smaller one. ��

 

[Huskerguy]

I just applied for mine today. So many misunderstandings about SS. A few basics would be helpful.

You can begin taking benefits at 62 based on your highest 35 quarters or years. Depending on your age you lose 25-35% compared to taking it at your "full retirement age" or FRA. Your SS will pay you 8% each year you postpone taking it up until age 70.

Your spouse will get the higher or theirs or half of yours IF they work until their FRA. So if the husband made more money and is due $2,000 a.month at HIS FRA and the wife didn't make as much.or stayed home, whatever, and her SS would pay $800 then she gets another $200 to add to the 800 to get to half of your amount IF she takes hers at FRA.

When either spouse passes, the surviving spouse gets the higher amount between the two.

I expect my wife to way outlive me so I postponed taking mine to provide a little more for her in the future. My break even is age 81, I am 67, that means at 81 I would have been better off on monthly basis to wait.

Ask questions and read read read.

 

[Old 44 Guy]

I've out lived 3 wives so this does not apply to me.

 

[crstrode]

A bird in the hand is worth two in the bush.

(That's what she said . . . )

 

[Muss Muggins]

My understanding is that the answer also depends on how long you and your wife have been married. Ex-spouses, provided you were married long enough, may also draw off the deceased spouse's Social Security . . .

 

[BAM-BAM]

Every year you wait after 62 to FRA then to 70 the monthly check will increase by 8%

But keep in mind.....


FWIW.............. SSI maxes out at about $3,100/ month in 2021


The math works out to pay you the same amount overall from the time you start to collect through your estimated life expectancy .

 

[Camster]

I'll toss in one little tidbit, though it's a drift from this thread.
Be careful about second marriages.
One of my former galpals was entitled to eventually share the maximum benefits earned by her high earner, monster former husband of 16 years.
Years later, still before she could claim any benefits, she quickly married someone else(-it lasted all of thirty days), and by doing so, she forfeited all rights to the first husband's SS.

 

[Steve912]

Every year you wait after 62 to FRA then to 70 the monthly check will increase by 8%

But keep in mind.....


FWIW.............. SSI maxes out at about $3,100/ month in 2021


The math works out to pay you the same amount overall from the time you start to collect through your estimated life expectancy .

Annnd each year you wait to file, you collect zero percent.

I looked at my numbers, comparing collecting at age 62 to
FRA. If I waited to FRA, it would take seven years until I only
broke even with what I missed, not filing at 62 (and that was
not considering the payments I'd collect during the seven
years, filing at 62).

 

[Dave.357]

From what I have found out.
If you want the real answer
Ask your questions at a
SS office to a case worker.

 

[S&WIowegan]

From what I have found out.
If you want the real answer
Ask your questions at a
SS office to a case worker.

This is good advice and should be followed by any of us getting to the age of collecting. However, be aware that it is not unusual to get bad information from case workers. It's probably a good idea to ask more than one case worker.

I have a friend who was convinced to start receiving benefits at 62 because the US might spend it self into bankruptcy. I laughed at that idea 10 yrs. ago but if you look at the skyrocketing deficits and debt we are clearly determined to find out what will happen when we hit the limit.

 

[Hair Trigger]

This tells you what you need to know, OP:
Social Security spousal benefits: Here’s what spouses can get

It's up to your spouse, when signing up for SS, to decide whether she wants her benefit, or half of yours, whichever is greater. You don't determine the amount.

What you describe is what some pensions offer. You take your full benefit and when you die, your survivor (spouse) gets nothing. You can sign up for a lesser amount, and your spouse will get a portion of your pension when you die (the pension plan will have a schedule of percentages to select from).

 

[CAJUNLAWYER]

Let's clear things up
SSA is the retirement payment one gets after paying all ones life and obtaining retirement age. It is NOT an entitlement, you and your employer paid for it
SSI is a needs based income for those who cannot work as a result of a disability who also have no work history. To receive it, you must be "disabled" according to Social Security regulations AND must have assets of any kind NOT EXCEEDING $2,000. This is often referred to as "the crazy check" that so many people deride. This IS an entitlement program. Sometimes it actually works as intended
SSDI is disability income that one receives when one becomes totally disabled as per social security regulations AND has paid in enough quarters from employment to qualify for such benefits. Again this is NOT an entitlement program as you have paid for it.
I do not do this type of work any more as in order to do it competently, one must pretty much do it full time as keeping up with the regulations is a HUGE task and the fees allowable are a pittance compared to the work the lawyer must do-so you make it up in volume. As always when trying to make regulations to cover everything sometimes leads to absolutely absurd results
Just to clear up the nomenclature-NOT to spark any debate

 

[yaktamer]

Ask your questions at a
SS office to a case worker.

Based on my experience at Social Security offices, this may be a losing proposition, insofar as odds are you will die before you get called up to the window.

 

[Muss Muggins]

Just a point of parliamentary procedure, but we always termed those programs the exact opposite. Since SSI is needs based, and has no requirement for prior contributions, you are not entitled to it, and must prove need. Since Social Security and its accompanying Disability program can only be accessed by a minimum prior contribution threshold, you are entitled to it, and the Yankee Gov’t must prove you are not if they don’t want to pay . . .

When you go to federal prison, you gotta prove need again when you get out for SSI. Not the same for Social Security . . .

https://www.ssa.gov/sf/FactSheets/aianssavsssifinalrev.pdf

Let's clear things up
SSA is the retirement payment one gets after paying all ones life and obtaining retirement age. It is NOT an entitlement, you and your employer paid for it
SSI is a needs based income for those who cannot work as a result of a disability who also have no work history. To receive it, you must be "disabled" according to Social Security regulations AND must have assets of any kind NOT EXCEEDING $2,000. This is often referred to as "the crazy check" that so many people deride. This IS an entitlement program. Sometimes it actually works as intended
SSDI is disability income that one receives when one becomes totally disabled as per social security regulations AND has paid in enough quarters from employment to qualify for such benefits. Again this is NOT an entitlement program as you have paid for it.
I do not do this type of work any more as in order to do it competently, one must pretty much do it full time as keeping up with the regulations is a HUGE task and the fees allowable are a pittance compared to the work the lawyer must do-so you make it up in volume. As always when trying to make regulations to cover everything sometimes leads to absolutely absurd results
Just to clear up the nomenclature-NOT to spark any debate

 

[Muley Gil]

My understanding is that the answer also depends on how long you and your wife have been married. Ex-spouses, provided you were married long enough, may also draw off the deceased spouse's Social Security . . .

The minimum time of marriage is ten years. Then she (or he) draws off of the RECORD. It doesn't matter how many exes you have, the amount is not reduced by prior spouses.

"One of my former galpals was entitled to eventually share the maximum benefits earned by her high earner, monster former husband of 16 years.
Years later, still before she could claim any benefits, she quickly married someone else(-it lasted all of thirty days), and by doing so, she forfeited all rights to the first husband's SS."

That is incorrect. Now, if she is currently married to someone, she can't draw off of her ex.

There is one exception: a woman is currently drawing off of her deceased husband. If she decides to remarry, she can continue to draw off of deceased husband.

 

[TX-Dennis]

Since my wife is 12 1/2 years younger than I am and she earns less than I do, she will come out WAY ahead if I can wait until age 70 to start collecting SS. That is my plan, but you know what they say about plans.

 

[Muley Gil]

Since my wife is 12 1/2 years younger than I am and she earns less than I do, she will come out WAY ahead if I can wait until age 70 to start collecting SS. That is my plan, but you know what they say about plans.

I had planned on working until 66. However, some health issues came up and I pulled the pin at 62 1/3. Sure the check could have been bigger, but me and the wife ain't missed any meals yet.

God is good.

 

[Muss Muggins]

My wife and I have decided that one of us will start at 62, and then we'll wait for the other until I get tired of working enough to hit the earnings threshold. . .

I had planned on working until 66. However, some health issues came up and I pulled the pin at 62 1/3. Sure the check could have been bigger, but me and the wife ain't missed any meals yet.

God is good.