For many elderly Americans, Social Security benefits are a critically important to their retirement and their financial existence. If you’re a baby boomer in charge of monitoring your parents’ finances or a retiree in need of the income, you should be aware that under certain circumstances it’s possible you might be receiving less than you should. If a woman is divorced or has been married more than once, or a woman’s husband delayed taking Social Security, she might be entitled to a bigger monthly benefit than she is currently receiving. Though the difference may not be especially enormous, it could be important to someone on a fixed income.
Though the problems are faced by both men and women, the fact that women typically earn less over their working lives means that they are more likely to be collecting less in benefits then they may be entitled to due to the earnings of a former spouse. This is because of rules which say an individual is entitled to collect Social Security benefits according to one of the following formulas: (1) based on his or her own earnings history; (2) 50% of his or her spouse or former spouse’s benefit if it is greater than their own; or (3) 100% if the former spouse is now deceased.
There are a few specific rules that must be met to receive this upward revision in benefits: (1) the marriage must have lasted 10 years or longer, and (2) the individual seeking a former spouse’s benefit must currently be unmarried, unless the second marriage occurred after the age of 60.
A great example of this is as follows: let’s say your mom only worked part-time and is now retired with an $800 per month Social Security check. Her former husband (your dad) made more money and worked longer hours and makes $2,000 per month in benefits. Rather than continue collecting the $800, your mother is actually entitled to collect $1,000 per month if your dad is still alive and the full $2,000 if he is deceased. As a bonus, if the Social Security Administration determines a spouse is eligible for increased benefits then that person will receive retroactive benefits going back six months.
This increase in benefits is important not only to family members watching out for an elderly loved one but also for those watching over senior citizens such as attorneys or debt counselors, even nursing home administrators and financial planners.
If you find yourself facing the prospect of retirement and want to make sure your financial interests are protected, you need the help of an experienced South Carolina family law attorney to guide you through the confusing process of divorce.
Source: “Boosting Mom’s Social Security Payments,” by Ellen E. Schultz, published at WSJ.com.
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