Social Security may be your largest or one of your largest assets. How you manage it, by deciding which benefits to collect and when, can make an absolutely huge difference to your lifetime benefits. And those with the highest past covered earnings have the most to gain from maximizing their Social Security.
I've been answering questions and writing columns about Social Security each week for the past two years on PBS NEWSHOUR's website. The editors at Forbes asked me to post a Q&A each day from those columns. To see all my columns, please go to my software company's site, www.maximizemysocialsecurity.com, and click More Press below the WSJ quote.
Today's question asks if it's possible to receive a full spousal benefit after filing for an early retirement benefit. The answer reviews some effects of filing early, explains excess spousal benefits, and explores potential strategies.
Question: I was married for 22 years, then divorced. One of my daughters became disabled six years ago. I quit work at age 62 and filed for Social Security, as she needs full-time care.
I did not have the information regarding ex-spouses, so I filed under my own. This year, at age 66, I called and was told I could not collect ex-spousal benefits, which would be higher, because I collected under my own too early. Do I have any recourse?
Answer: When you filed for your own benefit you were thrown into what I call “excess benefit hell,” where you can only collect an excess auxiliary benefit, not a full one. In your case, it sounds like your excess divorced spousal benefit is zero. This would be the case if your full retirement benefit exceeds half of your ex’s full retirement benefit. This said, if you ex dies, you should file for a divorced widow’s benefit. It may be that the divorced widow’s benefit exceeds your own retirement benefit, in which case your monthly payment will go up.
