6 Social Security Facts Every Woman Should Know
Social Security is a significant source of retirement income, particularly for women. But how well do you comprehend the advantages you are entitled to? Here’s what you should know about social security for women.
1. Women in retirement face more financial difficulties than males.
Although women rely on Social Security more than men, their payouts are usually less. After all, you earn more Social Security credits and receive larger benefits if you work more and pay more taxes. According to the Social Security Administration, women often live longer but earn smaller pensions and have fewer assets than men.
Women should make sensible investments and be aware of the Social Security benefits to which they are entitled if they want to avoid financial difficulties in retirement.
2. You can begin receiving partial benefits at age 62.
The Social Security Administration (SSA) states that you can begin collecting partial benefits at age 62 if you have been employed and paid Social Security taxes for at least ten years and have accrued at least forty work credits.
You will receive all your legally due benefits if you wait until you reach full retirement age.
Depending on your birth year, the SSA defines “full retirement age” as being between 66 and 67. Locate the chart on page 7 of SSA Publication 05-10024 to know your exact full retirement age.
3. Marital Status Doesn’t Limit Social Security Benefits
According to Christopher Liew, CFA charter holder and creator of Wealthawesome.com, you and your spouse can apply for Social Security benefits independently and individually. However, you both must have prior employment history and separate service records.
That implies that your combined retirement benefits should automatically exceed $3,500 per month if you have a claim for $2,000 per month and your spouse has a claim for $1,500 per month. You are not just allowed to receive 50% of your spouse’s pension, which is surprising.
4. You are often paid a higher rate if you are eligible for two benefits.
If you’re married, you might qualify for a portion of your spouse’s Social Security payment, ranging from one-third to one-half. Women with a spotty job history will find this helpful.
You’ll likely get the benefit with the highest rate, though, and not both. Because of this, most working women in retirement receive their own Social Security pension rather than their husbands.
The higher your spousal Social Security benefit or your own Social Security benefit will be paid to you as a spouse.
5. Working While Retired Can Reduce Social Security Benefits
You become eligible for a portion of your Social Security benefits when you turn 62. But if you choose to continue working while getting those benefits, the Social Security Administration will lower your payouts by $1 for each $2 you make over the yearly cap, which is $19,560 in 2022.
The Social Security Administration (SSA) will only lower your benefits by $1 for every $3 you earn beyond the yearly cap ($51,960 in 2022) if you continue to work in the year you reach full retirement age. Your benefits won’t be cut in this way after you hit FRA.
6. Widows are Entitled to Social Security Benefits From Their Spouse
A widow may be eligible for 71% of her deceased spouse’s benefits at age 60. Once a widow reaches the full retirement age, this percentage increases to 100%.
The SSA might be able to provide you with a lump sum payment of $255 if you were cohabitating with your spouse at the time of their death.
7. You May Still Be Eligible for Your Ex’s Benefits If You’re Divorced
You might believe that once you get divorced, all of the financial advantages of marriage are lost. But it doesn’t usually work that way when it comes to Social Security.
If you are currently single and your ex-spouse was married for at least ten years, you might be eligible to file for benefits depending on their employment. (This does not reduce the advantages they get.)
Just make sure that neither of you was married to anybody else when you were eligible for Social Security pension benefits. Your ex-service spouse’s history will determine how much of a Social Security pension you can receive.
During the divorce process, some women might consent to waiving their claim to their ex-spouse’s social security benefits. But the SSA hardly ever carries out these orders.
If you are aged 60 or older, and your ex-spouse has passed away, and you want to know your exact full retirement age, you are still eligible to receive benefits based on their job (or 50 if you have a disability).
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M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].
