Social Security options for single seniors
If you're like most who think about how much you need for your golden years, you probably calculated based on still having a spouse. Widows, widowers and divorcees approaching retirement and about to file for Social Security, though, need to recognize filing options that can significantly increase monthly benefits.
While rules are different for surviving spouses and divorcees than for those still married, you have options as a single senior. You may be able to file for spousal or survivor benefits instead of your own.
Widows and widowers. I recently met with a widowed client who was approaching age 66, which Social Security defines as her full retirement age (FRA). She lost her husband more than 25 years ago, never remarried and didn't know to claim her survivor benefits (based on the work record of her deceased husband) instead of her own.
A survivor may be entitled up to 100% of his or her spouse's Social Security benefit if not remarrying before age 60. When we compared both my client's and her late husband's monthly benefits, we found that she qualified to collect either her benefit of $2,300 at 66 or her survivor benefit of $2,000 based on her husband's account. (A deceased spouse's benefit continually increases to adjust for inflation.)
Most people would choose the higher benefit – in this case, her own. But each person's individual benefits grow if delayed until age 70; survivor benefits do not. In her situation, her own benefit increases to approximately $3,130 per month if she waits four more years to claim it.
Since she can do without the additional $300 per month, she decided to take her survivor benefits now and switch to her own larger monthly benefit when she turns 70. If she lives to 90, she will collect approximately $185,000 more in benefits using this strategy rather than just collecting her own benefits now, at her FRA.
Divorcees. You can also claim spousal benefits on your ex-spouse's record. Divorcees' spousal benefits are typically 50% of the full retirement benefits of the ex-spouse who qualified for such benefits. You must be at least 62 and not remarried and your marriage had to last 10 or more years.
The benefits of your ex-spouse must be higher than your own when you begin claiming yours. As with surviving spousal benefits, this claiming strategy allows you to collect some income before claiming your own full benefit at 70.
If your ex-spouse dies before you do, you may also qualify to collect his or her full survivor benefit instead of the 50% spousal benefit if, again, your marriage spanned at least 10 years. Note: If you are caring for a child younger than 16 or who is disabled, and receives benefits on the record of your former spouse, you do not need to meet the length-of-marriage rule. The child must be your former spouse's natural or legally adopted child.
We recommend that you start this process at least three months before you want to start collecting these benefits. You will need your late or ex-spouse's Social Security number and date of birth.
Rules for claiming Social Security benefits are very complicated, so it's best to consult with a financial advisor or Social Security specialist to understand all options. Ask questions and do the math to make your retirement years even more golden.
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Barry Glassman, CFP, is the founder and president of Glassman Wealth Services, in McLean, Va. Follow Barry on Twitter at@BarryGlassman.
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