Your Results: How Did You Do on Our Social Security IQ Test

I recently read "Get What's Yours - the Revised Secrets to Maxing Out your Social Security", which offers an absolute wealth of SS knowledge.

Something spelled out in that book but virtually nowhere else: if Spouse A lives beyond FRA but dies before ever filing for benefits, the widow(er)s spousal benefits are calculated as if the deceased had filed for benefits on the day of his/her death.

In practical terms this means that if one dies at 68.5 years old and has never taken benefits against his/her own earnings, the widowed spouse is eligible for benefits for Spouse A's 68.5 year old benefits.

This is useful information for couples where the higher earning spouse is considering delaying benefits beyond FRA.

I have. Question for a friend who has just been widowed, and is desperté to know if she’ll be eligible for the ss of her husband...she gets about six hundred.....it’s such a minefield, and I can’t advise her?....any suggestions please???....thank you.

Yes, I believe she should be eligible for widow's benefits. She needs to contact her local SS office rather than rely on just what all of us might think. She needs to call. Even if she was divorced and had been married to the man for ten years prior to the divorce, she would be eligible. The only way to know for sure is speak with a representative from SS.

Please, DO NOT solely rely upon the information given by Social Security Office personnel. Have her pay a Certified Financial Planner (CFP), someone who works as a fiduciary for the client, a fee to get the proper advice. I have talked with CFP's who specialize in Social Security planning as part of overall retirement planning. There are many specific instances where they've outlined SS claiming strategies for clients only for the clients to be told by their local SS Offices that they cannot claim SS as the advisor said. Problem was, the local SS Office personnel were wrong! Had to present the SS rules and go up a few "supervisor" levels to get the right answer from local SS Office personnel. If the clients would have stopped at the first answer they got from SS Office personnel, their benefits would be lower than what is allowed by law. A couple of hundred dollars in fees could equate to a lifetime of thousands in increased yearly SS income.

Doug....Jennifer....Thank you so very much. This is frightening.....can’t thank you enough, j

Social Security should not be so complicated or produce so much anxiety. But it does. Thank you for producing this quiz and yes, please do more.

Q. 6. In 2018 what is the average monthly Social Security benefit, AND the highest available monthly benefit?
Incorrect Answer:
Y – $1400 average and $3680 maximum

Correct
. In 2018, the maximum benefit will increase $101 per month to $2,788

Editors comment: From SS FAQ page
The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2018, your maximum benefit would be $2,788. However, if you retire at age 62 in 2018, your maximum benefit would be $2,158. If you retire at age 70 in 2018, your maximum benefit would be $3,698. See https://faq.ssa.gov/link/portal/34011/34019/article/3735/what-is-the-maximum-social-security-retirement-benefit-payable

I am retired military and I assume that my military service is being considered in my SS payment. However, I have been hearing about a benefit that requires you to take your DD214 to the nearest SS Office and register it to receive an extra benefit in your monthly payment. Is this so? Also, can this be made retroactive from my actual date of retirement?

From Arthur:
I got 9 out of 12 right. Missed all the questions regarding spousal benefits.

Thanks for sharing this!

We moved a lot of comments from another Blog here because they pertain to Social Security. Don't forget to take our "What is your Social Security IQ" quiz:
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The original comment was from Jennifer, who worries about maintaining her standard of living:
— While I am still working, I am fine financially. In late June I went back to work in medicine (I had been an administrative nurse in surgery) for an oral surgeon, but if I cannot work, it could be a hard time for me as I do not have a pension. I have saved via a 401K and have equity in my home. I have plenty of clothing and buy mix and match classics so I do not need anything but maybe one piece per season, if that. I am a good cook and have set a food budget, within that budget I attempt to allow for eating out for lunch or afternoon tea maybe once a month. There are many months I do not eat out at all. Since I have somewhat figured out what I need to do if I stay here, and I do not know where to go for retirement, I will stay put. Washington, DC has lots of free activities and stimulation.
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From Clyde:
Jennifer, if you haven’t taken Social Security yet, you could wait until 70 and you’ll get approximately eight percent more per year if you do. If you are able to continue your job until that age or longer, the income from that could tide you over until you’re eligible for a larger payout at 70. Take it at 70, because the payment doesn’t grow after that except for any annual COLA increases. Also, if health insurance is a financial concern, when you reach age 65 you’re, of course, eligible for Medicare and Medicare Advantage policies can be very inexpensive, some even having no monthly premium. And within their networks, there are almost always plenty of providers and hospitals. In your 401k, you maybe able to withdraw 3-5 percent of it each year without decreasing the principal amount, assuming markets go up on average 5-7% over time. However, no growth percentage is necessarily assured. Some fee-based financial advisor help could assist you in keeping your 401k in good shape for the future. As to HOA fees increasing, whether you’re renting or in a purchased condo, the HOA fees or rent will probably always be going up some, so that unknown may always be an issue – but not insurmountable. Best wishes.
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From Jennifer:
Hi Clyde:
Thanks Clyde I am well versed on Social Security. I had to take my social security benefits at 63.5 years of age to preserve my savings and since I would not be contributing much into SS to raise my benefit without full time employment, which I could not find. My first check came at the end of March. I would have loved to have taken it at 70. My plan was to do so since I am in good health, until my full time job with benefits was eliminated last Dec 1, 2017. I was given only two months of severance pay and insurance .I had to sign a document that I would not sue for age discrimination for the privilege. I had been working as an Executive Assistant to the Rector of an Episcopal Church (after leaving nursing in 2015) and because I worked for a church, much to my shock, I did not qualify for unemployment benefits since churches do not pay the unemployment tax.
For health insurance, in February 2018 I started with Christian Healthcare Ministries co-op insurance and have found it to be fine so far. The deductible is $500.00 and the premiums for the Gold plan are $150.00 per year and $40.00 plus $25.00 per quarter for catastrophic coverage. When you think of it most traditional medical insurance has a $2,000-$5,000 deductible. I will use this insurance for my secondary coverage when I qualify for Medicare next March, 2019. I could not find full time work and I decided to work part-time to supplement Social Security. The problem now is I am forced to earn no more than $17,040 (I will be 64 years of age next month). This can force a lower standard of living on me until 2020 when my FRA year kicks in. Then I can earn $45,000 or so before they reduce my benefit. Problem is I am now back in medicine ( I am a former administrative nurse) and I make good money even three days a week so since I just started in July, I am hoping to not make over the SS limit this year. Next year I will have to call SS to have my benefits temporairily reduced until I get into 2020 which is my FRA year. It is very hard on those of us who are not FRA when our full time jobs are eliminated and we are not considered for full time employment. I am lucky this did not happen earlier in my life. I firmly feel the government should do more for age discrimination in the workplace, especially since companies tend to let workers go when they get older. It is rampant and deserves more attention. I hope someone in our government is reading this!
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From Jean:
Jennifer, I’m not an expert in SS but have heard people talk about suspending it after filing. If you can suspend the SS and find full time employment could you bring in more than the SS plus 17000? If so, you can add to your savings even though it would not increase your SS when you resume collecting.—

From Florence:
Jennifer?I was little confused by your post and reference to collecting SS. At age 65 you can collect your full benefit regardless of how much money you earn by working-?Check out the SS.gov website—
“When you reach full retirement age:
Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn.”
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From Louise:
Jennifer, You can earn more than $17,040. Read the last line, it says the money is returned to you in higher SS payments when you reach full retirement age. Read below:
If I collect Social Security benefits early but earn more than the $17,040 limit, how do I pay the penalty?
You should notify the Social Security Administration of any earnings that you make so that it can adjust your benefits more quickly (through the annual earnings test). If you do not notify SSA, it will be notified through your W-2 form that SSA receives through the IRS. If you earn more than the earnings test threshold ($17,040 in 2018 for earnings prior to age 66), the SSA will reduce your benefit by $1 for every $2 in earnings over $17,040. SSA will automatically reduce your benefits once it learns of your earnings (through you or the IRS). If you do not inform Social Security that you exceeded the earnings test threshold and received a higher monthly benefit, your check will be reduced in the future once Social Security is aware of the overpayment. There is no “penalty” and the money that is taken from your benefit before full retirement age will eventually be returned to you in the form of slightly higher payments after you reach full retirement age.
So, even if you go over the $17,040 and they take money away from you, down the road your SS will be adjusted to reflect what you paid in and you will most likely get more in your SS check.
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Hi All thanks for your replies.

Florence, my full retirement age is 66 and I understand that they will not let me earn more than $17,040 until the first month of my full retirement year which would be 2020. I am unable to find a full time job, but I did find a lovely part time job three consecutive eight hour days per week and it pays my hourly nursing rate but there are no benefits and I must buy my own insurance. Prior to 66 I am subject to the earnings limit or they will withhold some of my benefits until I am in the year I turn 66 when there is no earnings limit. I understand all of that.

Thanks Louise for your comments, I am aware SS will recalculate my benefts and refund back anything withheld plus add a possible added benefit when I hit FRA. I am trying to navagate it so I do not have money withheld from SS working only a part-time job. If I find a full time job prior to Jan 2020, I will call SS and let them know my possible earnings. I am getting close to FRA and the year 2020 will entitle me to a higher earnings limit, so I am not worried then as this job does not go over $45,000 part-time. There is also a possibility that the earnings limits will increase for 2019. I just need enough money now to live and hopefully save or not touch my savings until FRA so I do not have my SS check reduced.

Jennifer, I believe you can suspend your SS any time within the first year you receive it, if you pay back what you received so far, and you will be in a position with SS as if you hadn’t taken it. I think such suspension may be done as long as you haven’t reached FRA. A good book on the subject is Get What’s Yours by Lawrence Kotlikoff. Also, although you may not even be considering it, it sounds to me like the clause in your separation agreement from the church on not suing for age discrimination may not be lawful. You may want to check with a labor plaintiff’s Attorney. They often will give a free half hour or hour long initial consultation.

Awaiting answer to Donald's question, 04/25/2018, regarding an extra monthly benefit if a Military retiree takes his DD214 (discharge papers) to SSA Office ?

Regarding Donald's original question and William's followup, this is a pretty specialized area, one we are not familiar with. This page at SSA.gov below seems to cover the topic, and it seems to state that SSA makes the adjustments automatically when you first apply, no need to take the discharge papers in. You could call to find out if the adjustment was made in your case. Note that this does not look like it is going to produce any big windfall. They will credit an extra $300/month ($100 in some years) to your earnings record from 1957 to 2001, but that kind of adjustment doesn't mean you would see much of a benefit from that, given how the formula works.
https://www.ssa.gov/planners/retire/military.html
https://www.ssa.gov/pubs/EN-05-10017.pdf