Should we apply for benefits now in the event that social security reduces them later?



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Social security can be one of your biggest assets. What and when you collect will make a huge difference to your lifetime benefits.

Today's column deals with deposits early in the context of potential benefit reductions, individuals who can still file restricted claims, potential pension effects on Social Security benefits, availability of benefits, and survivor and the exact time of the filing of a restricted application. Larry Kotlikoff is professor of economics at Boston University and founder and president of Economic Security Planning, Inc., a company that markets Maximize my social security and MaxiFi Planner. Both tools maximize the lifetime benefits of social security. MaxiFi also finds strategies for withdrawing retirement accounts and other ways to lower your taxes and increase your expenses. Most importantly, it suggests how much you should spend and save each year to enjoy a stable standard of living over time.

See more Ask Larry to answer here.

Ask Larry on social security here.

Should we apply for benefits now in the event that social security reduces them later?A sober stay

Hello Larry, My wife and I are still working and plan to retire soon. She is 66 years old and will soon be 69 years old. My goal was to wait 70 years to qualify for the maximum eligible benefit and my wife to file an application for a spousal benefit at the same time. His intention is to collect the spouse's allowance until he turns 70 years old. The unknown is whether social security will have the funds to pay us our patience. Our finances are comfortable, so if Congress chooses to test the resources, we risk losing and we may be interested in applying for benefits immediately. It is impossible to know the future, so if you were in our place, what would you do with what we know and do not know? Thank you Ralph

Hi Ralph, I can not predict the future, but & nbsp; If I were you, I would certainly not change my social security plans because of concerns about future funding of benefits. or any changes that the congress might or might not make to the social security program.

It seems that your current plan may be the best strategy for you and your wife, but I can not say without further information. Your best strategy depends largely on the comparative rates of your Social Security pension benefits with those of your wife. Best, Larry


Was my wife too late to apply for spousal benefits while allowing her earnings to increase?A sober stay

Hello Larry, my wife was born in 1955. According to what I know, it took a year too late to apply for a spouse allowance before moving to seventy years to her allowance of retirement. Is it correct? I dropped to seventy and she just turned sixty-four. Thank you, Dermot

Hello Dermot, yes, that's it. Since your wife was born after 01/01/1954, she could never make a restricted claim just for spousal benefits. Instead, she would be considered to be filing her own pension benefits herself. This is due to the 2015 bipartite finance law.

Your wife's best ranking strategy depends largely on the amount of her retirement benefit rate in relation to your benefit rate. She may want to use one of the two tools of my company – Maximize my social security or MaxiFi Planner – to help maximize the social security benefits of your home during your life. Social security calculators provided by other companies or non-profit organizations can provide appropriate suggestions if they have been constructed with extreme care. Best, Larry

Would receiving my ex-husband's pension have an impact on my social security benefits?A sober stay

Hello Larry, In my divorce after 27 years of marriage, I receive the pension of my ex. I am thinking now of the collection of social security. Since this pension is not based on the income I earned and was part of the divorce decree, will it affect my social security benefits? Thanks Vickie

Hello Vickie, awarding a pension based on income and work of your ex will have no effect on your benefits or social security options. Even if it's an income-based pension that your ex has not paid social security tax, a survivor benefit for you based on this pension does not apply. will not affect your benefits. Only a pension based on the income you have earned and for which you have not paid the social security tax may affect your benefits at this stage. Best, Larry


Will I have a higher benefit amount for my husband if he dies before me?

Hello Larry, my 73-year-old husband and I, 70, are receiving social security benefits. Both were affected by the disposition of the elimination of the exceptional effects. His social security pension benefits are much higher than mine. If he dies before me, can I receive a widow's benefit based on his criminal record? Thank you Helen

Hello Helen, It depends on the type of pension you receive and that affects your own retirement benefits by the provision in favor of eliminating the loss of income (Windfall Elimination Provision – WEP). If there is a government pension from a US entity, for example federal, state, local, widow benefits to which you would otherwise be entitled would be liable Be compensated because of the government's compensation arrangement (GPO).

If your husband dies before you, your widow's benefit will be calculated by subtracting your benefit rate from your husband's adjusted benefit amount. His adjusted rate would be the amount he would have received if his benefits had not been reduced from WEP. This difference would then be paid to you in addition to your own pension benefit rate, unless the widow's benefits are submitted to the GPO. If this is the case, then 2/3 of the amount of your government pension will be deducted from your widow's benefit. This could reduce your widow's rate to zero if two-thirds of the amount of your government pension exceeded your widow's benefits. Best, Larry


When can I apply for spousal benefits only after my husband's application?A sober stay

Hello Larry, Can I submit my limited spousal allowance application at the same time that my husband is applying for Social Security or should I wait until his application is approved? If I have to wait, how long does it take before I can register my spousal benefit? Thank you Carolyn

Hello Carolyn, Yes, you can apply for spousal benefits at the same time that your husband is filing benefits and before his application is approved. You can only file a restricted claim for spousal benefits after the month in which you reach retirement age or later, but you can submit your application up to four months before that date . Best, Larry

To learn more about your social security options, visit Economic Security Planning, Inc..

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Social security can be one of your biggest assets. What and when you collect will make a huge difference to your lifetime benefits.

Today's column deals with deposits early in the context of potential benefit reductions, individuals who can still file restricted claims, potential pension effects on Social Security benefits, availability of benefits, and survivor and the exact time of the filing of a restricted application. Larry Kotlikoff is professor of economics at Boston University and founder and president of Economic Security Planning, Inc., a company that markets Maximize My Social Security and MaxiFi Planner. Both tools maximize the lifetime benefits of social security. MaxiFi also finds strategies for withdrawing retirement accounts and other ways to lower your taxes and increase your expenses. Most importantly, it suggests how much you should spend and save each year to enjoy a stable standard of living over time.

See more Ask Larry for answers here.

Ask Larry about social security here.

Should we apply for benefits now in the event that social security reduces them later?A sober stay

Hello Larry, My wife and I are still working and plan to retire soon. She is 66 years old and will soon be 69 years old. My goal was to wait 70 years to qualify for the maximum eligible benefit and my wife to file an application for a spousal benefit at the same time. His intention is to collect the spouse's allowance until he turns 70 years old. The unknown is whether social security will have the funds to pay us our patience. Our finances are comfortable, so if Congress chooses to test the resources, we risk losing and we may be interested in applying for benefits immediately. It is impossible to know the future, so if you were in our place, what would you do with what we know and do not know? Thank you Ralph

Hi Ralph, I can not predict the future, but If I were you, I would certainly not change my social security plans because of concerns about future funding of benefits. or any changes that the congress might or might not make to the social security program.

It seems that your current plan may be the best strategy for you and your wife, but I can not say without further information. Your best strategy depends largely on the comparative rates of your Social Security pension benefits with those of your wife. Best, Larry


Was my wife too late to apply for spousal benefits while allowing her earnings to increase?A sober stay

Hello Larry, my wife was born in 1955. According to what I know, it took a year too late to apply for a spouse allowance before moving to seventy years to her allowance of retirement. Is it correct? I dropped to seventy and she just turned sixty-four. Thank you, Dermot

Hello Dermot, yes, that's it. Since your wife was born after 01/01/1954, she could never make a restricted claim just for spousal benefits. Instead, she would be considered to be filing her own pension benefits herself. This is due to the 2015 bipartite finance law.

Your wife's best ranking strategy depends largely on the amount of her retirement benefit rate in relation to your benefit rate. She may want to use one of my company's two tools, Maximize My Social Security or MaxiFi Planner, to maximize the Social Security benefits of your home. Social security calculators provided by other companies or non-profit organizations can provide appropriate suggestions if they have been constructed with extreme care. Best, Larry

Would receiving my ex-husband's pension have an impact on my social security benefits?A sober stay

Hello Larry, In my divorce after 27 years of marriage, I receive the pension of my ex. I am thinking now of the collection of social security. Since this pension is not based on the income I earned and was part of the divorce decree, will it affect my social security benefits? Thanks Vickie

Hello Vickie, awarding a pension based on income and work of your ex will have no effect on your benefits or social security options. Even if it's an income-based pension that your ex has not paid social security tax, a survivor benefit for you based on this pension does not apply. will not affect your benefits. Only a pension based on the income you have earned and for which you have not paid the social security tax may affect your benefits at this stage. Best, Larry


Will I have a higher benefit amount for my husband if he dies before me?

Hello Larry, my 73-year-old husband and I, 70, are receiving social security benefits. Both were affected by the disposition of the elimination of the exceptional effects. His social security pension benefits are much higher than mine. If he dies before me, can I receive a widow's benefit based on his criminal record? Thank you Helen

Hello Helen, It depends on the type of pension you receive and that affects your own retirement benefits by disposing for the elimination of lost income (WPA). If there is a government pension from a US entity, for example federal, state, local, widow benefits to which you would otherwise be entitled would be liable Be compensated because of the government's compensation arrangement (GPO).

If your husband dies before you, your widow's benefit will be calculated by subtracting your benefit rate from your husband's adjusted benefit amount. His adjusted rate would be the amount he would have received if his benefits had not been reduced from WEP. This difference would then be paid to you in addition to your own pension benefit rate, unless the widow's benefits are submitted to the GPO. If this is the case, then 2/3 of the amount of your government pension will be deducted from your widow's benefit. This could reduce your widow's rate to zero if two-thirds of the amount of your government pension exceeded your widow's benefits. Best, Larry


When can I apply for spousal benefits only after my husband's application?A sober stay

Hello Larry, Can I submit my limited spousal allowance application at the same time that my husband is applying for Social Security or should I wait until his application is approved? If I have to wait, how long does it take before I can register my spousal benefit? Thank you Carolyn

Hello Carolyn, Yes, you can apply for spousal benefits at the same time that your husband is filing benefits and before his application is approved. You can only file a restricted claim for spousal benefits after the month in which you reach retirement age or later, but you can submit your application up to four months before that date . Best, Larry

To learn more about your social security options, visit the Economic Security Planning, Inc. website.

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