As we speak’s Social Safety column addresses questions on how delivery yr can have an effect on profit quantities, eligibility for divorced spousal advantages and the flexibility to say retroactive auxiliary advantages primarily based on a employee’s file. Larry Kotlikoff is a Professor of Economics at Boston College and the founder and president of Financial Safety Planning, Inc.

See extra Ask Larry solutions right here.

Have Social Safety questions of your personal you’d like answered? Ask Larry about Social Safety right here.

How Do My Social Safety Advantages Examine To Somebody Born In A Totally different 12 months?

Hello Larry, Are you able to please develop on one other reply explaining that advantages can differ relying on what yr the recipient was born? I used to be born in 1960 and I began my Social Safety retirement advantages final yr. How will my advantages evaluate to equal recipients born in both 1959 or 1961? Thanks, Justin

Hello Justin, There isn’t any main distinction in how profit charges would evaluate for somebody born in 1960 vs. 1959 or 1961. Totally different indexing elements are used to calculate the bottom main insurance coverage quantity (PIA) for annually of delivery although, so there could be some variations. And other people solely obtain credit score for Social Safety price of residing will increase that happen after they attain 62, so individuals who flip 62 in 2022 or later will not be credited with the 2022 COLA when their Social Safety retirement fee is calculated.

Nevertheless, the totally different indexing elements largely offset the shortage of COLAs for individuals who have not but reached 62. Principally, retirement profit charges are adjusted primarily based on will increase within the nationwide common wage index (AWI) up till an individual reaches 62, after which they’re adjusted primarily based on COLAs after that. Greatest, Larry

Is It True That I Cannot Apply For My Social Safety Divorced Spousal Profit?

Hello Larry, I’m 64 and nonetheless working. I used to be married for 14 years earlier than divorcing. I have not remarried. I perceive I can draw my divorced spousal profit. I utilized however was advised in a telephone interview that I’m not eligible as a result of I’ve not made lower than half of what he has made up to now. Is that this true? Additionally I really feel that I’ve made lower than half of his earnings or that he has not recorded his earnings actually. I don’t agree with the particular person on the telephone. What ought to I do? Can I reapply? Thanks, Sherry

Hello Sherry, You may at all times apply for advantages, and in case you do apply and in case your declare is disallowed then you may file an attraction. Nevertheless, it appears like what the Social Safety worker you spoke with was attempting to clarify to you is you can’t qualify for divorced spousal advantages on the file of an ex-spouse except the ex-spouse’s main insurance coverage quantity (PIA) is greater than twice as a lot as your personal PIA. An individual’s PIA is the same as their Social Safety retirement profit fee if they begin drawing their advantages at full retirement age (FRA).

Because you had been born after 1/1/1954, you are not allowed to use only for divorced spousal advantages with out additionally being required to file to your retirement advantages on the similar time. And if your personal PIA is greater than half as a lot as your ex-spouse’s PIA, you can solely be paid your greater retirement profit fee.

It appears like chances are you’ll wish to think about using my firm’s software program — Maximize My Social Safety or MaxiFi Planner — to make sure your family receives the very best lifetime advantages. Social Safety calculators supplied by different firms or non-profits might present correct options in the event that they had been constructed with excessive care. Greatest, Larry

Is There Any Benefit To Declare My Spouse’s Youngster In Care Spousal Advantages Retroactively?

Hello Larry, I filed for advantages at my FRA in 2020. My spouse and disabled son additionally obtained advantages at the moment primarily based on my file, restricted by the household most for advantages claimed on my file. My spouse has no earlier Social Safety file of her personal and my son was transformed from SSI to Social Safety advantages after I filed.

Is there any benefit to return and file for the child-in-care spousal profit retroactively? Is there a technique involving suspending my retirement till 70 that will profit be advantageous in our state of affairs? Thanks, Brian

Hello Brian, Neither your spouse nor your baby may very well be paid advantages out of your file for any months previous to the primary month of your profit entitlement. So claiming child-in-care spousal advantages retroactively is not an choice, assuming that your spouse began drawing advantages if you did.

You would voluntarily droop your advantages between now and 70, however in case you achieve this your spouse and kid’s advantages may also be suspended. Suspending your advantages would enhance your profit fee by 2/3rds of 1% for every month that you simply droop your advantages, however it might not enhance your kid’s or your spouse’s profit charges when your funds are resumed. Greatest, Larry