Real Answers for Life’s Money Challenges
My husband passed away two years ago.
This year, I turned 60 and was under the impression I would be eligible for his benefits.
-S.
Dear S.,
Youre allowed to collect your late husbands benefits.
These are thebiggest money secrets rich people don’t tell you.
But youre running into problems because youre trying to takeSocial Securityearly.
These issues arent unique to survivor benefits.
Youd face the same hurdles if you started taking early retirement benefits based on your own work record.
First, let me clarify a few things about survivor benefits for readers.
Claiming earlier results in a reduced benefit.
(For a more detailed explanation, check out oursurvivor benefits FAQ).
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If you have a decent salary, that withholding can wipe out the benefit altogether.
It would only take a salary of around $57,000 to wipe out that benefit completely.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Thats a lot of bad news that Ive just tossed out there.
But I do have a few rays of light to offer.
Once you reach full retirement age, theres no cap on your earnings.
You could earn $1 million, even $10 million, and Social Security wouldnt touch your benefit.
Also, the reduction in benefits I just described is only temporary.
Should you start benefits early, Social Security would recalculate your benefit once you reach full retirement age.
Youd get credit for any months your benefit was reduced or eliminated altogether due to working.
That means youd eventually get bigger checks, assuming you reach full retirement age.
All that is no doubt frustrating to hear.
As you point out, your husband spent many years paying into the system.
Social Security doesnt have accounts set aside for each of us.
The trust simply pays out benefits according to work histories.
Some people have to take benefits as soon as theyre eligible because theyre in dire need of the money.
It doesnt sound like this is the case here.
Until youre ready to retire, keep working and delaying benefits.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected].
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