Coordinating Spousal Benefits for Social Security
October 3, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
Coordinating spousal benefits in filing for social security can make a big difference in your retirement income. Contrary to popular practice, it’s not automatic that each spouse should just file for social security benefits as soon as he or she retires. As a couple, you have the potential to increase your income over your whole retirement and maximize security for the surviving spouse through effective planning.
Social security offers some surprising options to help couples (including divorced couples married for at least 10 years) take full advantage of all benefits available to them.
Did you know that spousal benefits are not restricted to the low-earning spouse and can be claimed by the husband or wife?
A high-earning spouse who wants to wait until age 70 to file on his or her own record to receive maximum delayed retirement credits, can file for spousal benefits on the lower earning spouse’s record at full retirement age. This allows the high earning spouse to receive at least some social security without reducing his or her own maximum delayed retirement benefit.
Did you know that the primary worker has the option to file and suspend his or her own benefit and still allow the spouse to start receiving benefits?
This option allows the primary worker to continue earning delayed retirement credits while the lower earning spouse starts to receive a spousal benefit on the worker’s record.
Did you know that by the higher earning spouse delaying benefits to age 70, both husband and wife enjoy longevity protection?
When the first spouse passes away, the surviving spouse gets to keep the higher of their two benefits – including delayed retirement credits. These benefits are indexed for inflation, so even if the surviving spouse lives another 20 years after the first spouse’s death, he or she will benefit from the delayed retirement credits growing with inflation over that entire time.
These considerations are just the tip of the iceberg in planning for social security! For couples nearing age 62, the pay-off on the effort to fully analyze this decision is enormous.
Keller Social Security Workshop
September 26, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
My free workshop on social security planning at the Keller Public Library is scheduled for Tuesday, October 18 at 6:30 pm.
It’s designed for baby boomers to help you maximize your retirement income. If you are 55 or older, have not yet filed for social security, and live in or around Keller, you should strongly consider attending this financial information session. Attendees will learn:
- 5 factors to consider when deciding when to apply for benefits
- Why you should always check your earnings record for accuracy
- How to coordinate benefits with your spouse
- How to minimize taxes on Social Security benefits
- How to coordinate Social Security with your other sources of retirement income
You are welcome to attend and bring your questions! Please RSVP to library@cityofkeller.com for planning purposes.
A copy of “The Smartest Retirement Book You’ll Ever Read” by Daniel Solin will also be given away.
Keller Social Security Planning Workshop
July 18, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
I am conducting a free social security strategy workshop at the Keller Public Library on Tuesday, July 19 at 6:30 pm.
It’s designed for baby boomers to help you maximize your retirement income. If you are 55 or older, have not yet filed for social security, and live in or around Keller, you should strongly consider attending this financial information session. Attendees will learn:
- 5 factors to consider when deciding when to apply for benefits
- Why you should always check your earnings record for accuracy
- How to coordinate benefits with your spouse
- How to minimize taxes on Social Security benefits
- How to coordinate Social Security with your other sources of retirement income
You are welcome to attend and bring your questions! Please RSVP to library@cityofkeller.com for planning purposes.
A copy of “The Smartest Retirement Book You’ll Ever Read” by Daniel Solin will also be given away.
July Personal Finance Newsletter
July 14, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The July personal financial planning newsletter is now available.
Because of the tumultuous investment markets and economic uncertainty, the newsletter includes two investing columns — one a recap of the second quarter market performance with a look forward, and another by Jim Parker with Dimensional Funds providing some compelling data on the importance of maintaining investment discipline.
The newsletter also has information on the new IRS mileage rates for the second half of 2011, a summary of how A/B and A/B/C trusts work for estate planning, and an overview of the tax and policy issues involved in taking a loan from your life insurance policy.
Plus, there’s an invitation to my social security workshop this coming Tuesday at the library.
Click here to read the newsletter.
Maximizing Social Security Survivor’s Benefits
April 25, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
When you think of Social Security, you probably think of retirement. However, Social Security can also provide much-needed income to your family members when you die, making their financial lives easier.
Your family may be entitled to receive survivor’s benefits based on your work record
When you die, certain members of your family may be eligible to receive survivor’s benefits (based on your earnings record) if you worked, paid Social Security taxes, and earned enough work credits. The number of credits you need depends on your age when you die, however, no one needs more than 40 credits (10 years of work) to be “fully insured” for benefits.
Survivor’s benefits may be paid to:
- Your spouse age 60 or older (50 or older if disabled)
- Your spouse at any age, if caring for your child who is under age 16 or disabled
- Your ex-spouse age 60 or over (50 or older if disabled) who was married to you for at least 10 years
- Your ex-spouse at any age, if caring for your child who is under age 16 or disabled
- Your unmarried children under 18
- Your unmarried children under 19, if attending school full time (up to grade 12)
- Your dependent parents age 62 or older
This is a general overview–the rules are more complex. For more information on eligibility requirements, go to www.ssa.gov.
How much will your survivors receive?
An eligible family member will receive a monthly survivor’s benefit based on your average lifetime earnings. The higher your earnings, the higher the benefit. This monthly benefit is equal to a percentage of your basic Social Security benefit. The percentage depends on your survivor’s age and relationship to you.
If your family member is already entitled to social security benefits based on his or her own record, he or she will be able to receive whichever benefit is higher – survivor benefits based on your record or benefits based on the family member’s own record.
For example, at full retirement age or older, your spouse may receive a survivor’s benefit equal to 100 percent of your basic Social Security benefit. If your spouse was already receiving social security based on his or her own record when you died and his or her monthly benefit was lower than yours, your spouse would be able to switch to your benefit.
If you delay filing for social security benefits past full retirement age, your spouse’s survivor benefit would also be higher because of your delayed retirement credits. Any delay up until age 70 increases the base for future social security cost-of-living adjustments. This has a powerful multiplier effect on both the standard of living during your lifetime and for your surviving spouse’s lifetime.
You can get an estimate of how much your survivors might be eligible to receive by filling out a request form at your local Social Security office, visiting www.ssa.gov, or reviewing you Social Security Statement.
Before filing for Social Security, consider the many different filing options available to you and ensure that you select the one that provides the best combination of current income, longevity protection, and survivor security for your situation. Keener Financial Planning provides analysis of different filing scenarios and recommendations on which one is most beneficial for you in the context of your overall retirement plan.
April Personal Finance Newsletter
April 15, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The April 2011 Personal Finance Newsletter is now available. This month’s newsletter includes a reminder on Monday’s 2010 IRA contribution deadline and information on social security statements being suspended. We also have articles on the estate tax exemption portability and the opportunity for some to do Roth conversions inside their 401(k) plans. Plus — it’s my pleasure to introduce Keener Financial Planning’s new Planning Assistant, Megan Horst. To read the newsletter, please click here.
March Personal Finance Newsletter
March 14, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The March personal financial planning newsletter is now available. It includes an update on the investment market, tips on cutting discretionary spending to build your cash reserve, planned charitable giving, and social security survivors benefit. There’s also a special guest column from attorney Rania Combs on the complexities of dying intestate (without a will) for individuals in blended families in Texas. Click here to read the newsletter.
How to Maximize Social Security Benefits
February 7, 2011 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
Baby boomers, learn how to maximize your social security benefits and about recent changes to the social security program. I am conducting a free social security strategy workshop at the Keller Public Library on Tuesday, February 15 at 6:30 pm. It’s designed for baby boomers to help you maximize your retirement income. We will cover:
- 5 factors to consider when deciding when to apply for benefits
- Why you should always check your earnings record for accuracy
- How to coordinate benefits with your spouse
- How to minimize taxes on Social Security benefits
- How to coordinate Social Security with your other sources of retirement income
You are welcome to attend and bring your questions! Please RSVP to library@cityofkeller.com for planning purposes.
December Personal Finance Newsletter
December 16, 2010 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The December 2010 personal finance newsletter is now available. It includes an important update on social security rules, 2011 IRS mileage rates, considerations in rolling your traditional 401(k) to a Roth IRA, and changes to the adoption assistance program. As always, there’s also an investment market update. Please click here to view the newsletter.
Social Security Workshop for Baby Boomers
November 8, 2010 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
I am conducting a free personal finance workshop on social security planning strategies at the Keller Public Library on Tuesday, November 16 at 6:30 pm. Personal finance workshops are held the third Tuesday of each month at the library, and this will be the last time the social security topic will be addressed in 2010.
The session will cover what baby boomers need to know to maximize their retirement income. Attendees will learn:
- 5 factors to consider when deciding when to apply for benefits
- Why you should always check your earnings record for accuracy
- How to coordinate benefits with your spouse
- How to minimize taxes on Social Security benefits
- How to coordinate Social Security with your other sources of retirement income
You are welcome to attend and bring your questions! The last time this workshop was held in August, we had quite a few excellent questions from the audience that helped everyone learn more about unique social security filing strategies and the rules that apply to them. Seating is limited, so please RSVP to library@cityofkeller.com to ensure your space.