Q & A
I am 60 years old. I have only worked sparingly throughout my life and will get a very small Social Security check. I was counting on sharing in my husband’s much larger check. But suddenly, after 39 years of marriage, he has decided he wants a change. He’s moved in with another woman. He wants a divorce, but I don’t want to give it to him because I don’t want this other woman getting all of his Social Security and leaving me with nothing. He is 61 and is still working and I don’t think he will retire until he’s 70. What can I do?
Answer: The best thing you can do, at least from a Social Security perspective, is divorce this man. And that’s because the rules provide a bit of a break to a divorced woman. I’ll explain. As long as you are married to…
What is a “restricted application” and how does it work?
Answer: Restricted application takes place when someone who is full retirement age (that’s 66 or 67 depending on when you were born) applies for spousal benefits only and delays his or her own benefits allowing them to grow 8 percent a…
Will military retirement reduce my Social Security amount?
Answer: It will not, as explained below but the question brings up a topic not mentioned for a while, the Windfall Elimination Provision (WEP). Pensions are not usually considered when computing your Social Security benefit and do not reduce SSA retirement…
How are Social Security benefits calculated, and how do I find out how much I will get when I retire?
Answer: Your Social Security benefits are based on the number of years you’ve worked in jobs covered by Social Security, the amount you earned each year and your age when you start taking benefits. The size of your benefit is based…
Can I Return to Work and Keep Disability Benefits?
Full Question: I have been collecting disability benefits for a few years, but I’m getting healthy enough to work again. Can I return to work while getting Social Security disability benefits? Answer: Yes, you can return to work while receiving…
I’ve noticed that when you are talking about reductions in Social Security benefits for early retirement, you always say the reduction will be about one-half percent. Why do you say “about?” Is it one-half percent? Or is it something else?
Answer: It is “something else” all right! I will attempt to explain. You are right that I almost always throw in that word “about.” As in this statement: If you take Social Security benefits before your full retirement age, your benefit will…
I am in my eighth year of retirement. A few years in, I found myself spending a considerable amount on repairs and upkeep on my old house. I also had to replace my car. Luckily, I was able to build up a reserve fund to cover costs so I didn’t have to dip into my investments for these “life happens” events. What is your advice on how much cash a retiree should have on hand to feel secure?
Answer: Of course, everyone should have a cash cushion to handle unexpected expenses, but retirees need a larger cash reserve than people who are still working, says Richard Paul, president of Richard W. Paul and Associates in Novi, Mich. “The stakes…
Do Social Security retirement amounts change based on what state you live in?
Answer: No. Your retirement amount is based on your personal work history over many years and your age when starting benefits, not on where you live. It will not change if you move to a different state. Your best 35 years…
I was married to my first husband for 14 years, until he died. I got married again for another 18 years, until the second husband’s death. A few months before I turned 60 I married for a third time. Now, approaching age 65, I’m wondering if I can get Social Security benefits from any of my husbands.
Answer: Unfortunately, it appears that that you cannot, at least in the case of the first two husbands. If you had remarried after age 60, you would have been entitled to benefits on your prior deceased spouse’s Social Security earnings record. But…
When we start retirement, which asset (or a combination of assets) do we spend down first? I believe filing jointly, we should not have more than $74,000 or so to claim as income each year, otherwise we will no longer be in the 15% tax bracket and most likely be penalized further by Social Security.
Answer: Many people approach this issue from the same angle I think you have. They want to stay in a tax bracket of 15% or less. Because distributions from pretax retirement plans are taxable as ordinary income, long-term capital gains…