I get dozens of emails each week from people who are getting advice from friends and neighbors about Social Security. And so often, what they hear from these probably well-intentioned folks is wrong. I've saved up some examples and will share them with you today.
Q: I took my Social Security at 62 and so did my husband. We are now in our early 70s. I have so many friends who tell me that they plan to take spousal benefits at 62 and then at 66, switch to full benefits on their own record. And they wonder why I never did this. Did I do something wrong?
A: The only thing you did wrong is listen to your friends. I'm sure they are nice people, but they know absolutely nothing about Social Security. With one exception, no one can do what they claim they plan to do. You can't take spousal benefits at 62 and then later switch to full benefits on your own Social Security account.
What's the exception? If any of your friends is a widow, she would have the option of taking reduced widow's benefits as early as age 60. Then at 66, she can switch to 100 percent of her own retirement benefit. Or she can wait until 70 and switch to 132 percent of her own benefit. A widow's other option would be to turn that around. Depending on the benefit amounts involved, it might be to her advantage to take reduced retirement benefits at 62 and then switch to 100 percent widow's benefits at 66.
Q: I have a friend who says that she is getting her own full benefit and she also is getting full spousal benefits on her husband's Social Security record. But in some of your past columns, you said that a woman either gets her own benefit or her husband's benefit, but not both. So who is right? By the way, I am not planning to sign up for Social Security until I come of age in 2020, but I am just making some plans now.
A: Your friend is NOT right. No one can get full benefits on two different Social Security records at the same time. But you are not quite understanding what I was explaining in those prior columns. If a woman is due her own benefit, she always will be paid that benefit first. Then if she is due any extra benefits on her husband's record, she will get the difference.
Let's look at an example. Say that when you turn 66, you will be due $1,000 from your own account. And then let's further say that your husband is getting $2,600 on his record. You would be due $1,300 in spousal benefits from his account. You do not get $1,300 from him in addition to $1,000 from your own Social Security. You essentially get the benefit that pays the higher rate. In this case, $1,300. But again, the law says you must be paid your own $1,000 first. Then you'd get an extra $300 per month from your husband's account to take your total payments up to $1,300.
Q: All my friends say I am not getting enough from Social Security. They say I should be getting half of my husband's Social Security. But I get less than that. All of these women tell me they are getting half of their husband's Social Security. What can I do about this?
A: What you can do is stop listening to them — at least, about Social Security. A woman get's half of her husband's Social Security if she waits until age 66 to claim spousal benefits. I bet you took benefits before you were 66 and that is why you are getting less than half. It might be as low as about one-third if you started your benefits at age 62.
By the way, I bet not all of your friends are getting the 50 percent rate. I've learned over the last 45 years that more than a few people exaggerate the amount of money they get from Social Security, especially when they are talking to acquaintances.
Q: I turned 65 last month, and I am still working. I never signed up for Medicare because I get full health benefit coverage from my employer. My friends at work tell me I am making a big mistake. They say I will pay a huge penalty if I delay signing up for Medicare any longer. Is this true?
A: Your friends are generally right that people who do not apply for Part B Medicare at age 65 will pay a 10 percent premium penalty for each year they delay signing up. (Part B mainly covers doctor visits and lab costs.) But there is an exception for people who are still working and are covered by an employer's health package — like you. People like you are not required to file for Part B Medicare until they retire and lose their active employer's health coverage.
Having said that, you should sign up for Part A Medicare because it's free. Part A covers inpatient hospital bills. Even though you probably won't need it while you are still working, why not get it over with and apply for it? Again, it's free.
Q: I am about to turn 62. I am debating whether I should retire now and sign up for my Social Security, or wait until I am 66 to get a higher rate. My friends tell me to quit and sign up now because they say Trump has plans to cut Social Security benefits for future retirees. What have you heard about this?
A: I haven't heard of any plans the Trump administration has for Social Security. And even if he did have plans, he can't just make an executive decision to tamper with Social Security. Any changes to Social Security would require legislation from Congress. And there is nothing in the pipeline. So make your decision about when to start your Social Security benefits based on your answers to these kinds of questions: Do you feel like retiring? Do you want to keep working? Do you want smaller benefits for a longer period of time? Then retire and apply for Social Security now. Or do you want higher benefits for a shorter period of time? Then wait until age 66 or even 70 to sign up for your benefits. Do you have a spouse who might be eligible for some benefits on your record? Then take that into account, too.
If you have a Social Security question, Tom Margenau has the answer. Contact him at [email protected]. To find out more about Tom Margenau and to read past columns and see features from other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.
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