I received married at 19 and divorced in my early 30s. Throughout my 20s, I didn’t work a lot as a result of I stayed at residence elevating three children, however I’ve labored full time ever since my divorce. I’ve by no means earned above $54,000 a 12 months, which is what I’m making now.
I’m turning 62 subsequent 12 months and am getting ready to retire and take Social Safety. My ex-husband (age 64) has a high-paying job and has at all times outearned me. We’re now not involved, however I do know he’s nonetheless working by way of our children.
I’m pondering I’d in all probability get extra advantages if I took his Social Safety. Would I have to contact him and get his permission first?
-H.
Pricey H.,
No, you don’t have to contact your ex to assert his Social Safety. Even Social Safety gained’t contact your ex to inform him you’re claiming his Social Safety advantages. So please don’t fear that you simply’ll have to restart communication together with your ex to get his permission right here.
However I get tremendous nervous each time anybody begins speaking about taking Social Safety at 62, irrespective of whose file they’re claiming on. And I’m additionally skeptical about whether or not you’ll truly gather extra primarily based on his file relatively than your personal. Extra on all that shortly.
First, a fast primer on the foundations for exes and Social Safety. You may declare primarily based on an ex-spouse’s file in the event you have been married for no less than 10 years, you’ve been divorced for 2 years and also you haven’t remarried. You each must be no less than 62, and your ex must be eligible for advantages primarily based on their work historical past. It doesn’t matter whether or not your ex has truly began advantages. They only have to be eligible.
Your ex actually shouldn’t care about this one. His advantages gained’t be affected — which can come as excellent news or dangerous information to you, relying on how the wedding ended. If he’s remarried, his new partner’s advantages gained’t be impacted, both.
Technically, he might name the Social Safety Administration and discover out whether or not you (or some other ex-spouse) are gathering advantages primarily based on his file. Absolutely his time is healthier spent working at that high-paying job than it’s on the telephone with Social Safety. Ought to he select to embark on a fact-finding mission, they wouldn’t inform him your tackle or how a lot you’re truly receiving.
However essentially the most you possibly can gather primarily based on an ex-spouse’s work file is 50% of their full retirement profit, i.e., what they’ll qualify for at full retirement age. Wait! There’s extra dangerous information. You solely get your complete 50% in the event you wait till your full retirement age. For those who have been born in 1959, that’s 66 years and 10 months.
By claiming as quickly as you’re eligible, you’ll cut back your profit much more. For every year you are taking your advantages earlier than your full retirement age, you cut back your profit by 6.66%, irrespective of whose file you declare on. In your case, you’d solely be gathering about 35% of his profit.
Understand that the foundations for Social Safety and exes exist to guard individuals who don’t have a lot work historical past of their very own. I’m uncertain that you would be able to gather extra utilizing his profit, given that you’ve no less than 30 years of labor historical past. Happily, we don’t have to spend all day speculating about whose file provides you with a much bigger profit.
You may name Social Safety and ask them what you’ll qualify for as a divorced partner. You’ll have to offer your marriage and your divorce decree. It will likely be useful in the event you nonetheless have your ex’s Social Safety quantity. For those who don’t, you might want to offer different figuring out data for Social Safety to find his file. You’ll get whichever profit is increased.
The larger query is whether or not you possibly can afford to retire and take Social Safety at 62. For people who find themselves in first rate well being, the very best answer is often to carry out so long as doable until you might have severe retirement financial savings. Ready to gather the utmost profit at age 70 is unrealistic for a lot of seniors. However even holding out for a few years previous 62 could make retirement extra inexpensive.
Everytime you determine to assert, understand that you’ll solely have a 12-month window to reverse your determination. In that case, you’d must droop your profit and pay again every little thing you obtained. If that’s not possible, it’s a must to settle for the decrease profit for all times.
Marriages don’t at all times final. However your Social Safety selections are roughly everlasting. Tread very rigorously, irrespective of whose file you declare on.
Robin Hartill is an authorized monetary planner and a senior editor at The Nourishmoney. Ship your difficult cash inquiries to [email protected].