Executive Summary
For prospective and current retirees who are concerned that "unexpected" or extreme longevity may lead them to run out of money, there are few strategies more effective than the decision to delay Social Security benefits. The tradeoff - where payments are not received now, in exchange for higher payments in the future - is similar to buying an income annuity, or investing in a bond ladder that will begin liquidating in the future... except that the implicit "pricing" of the decision to delay Social Security is far better than any commercial annuity or bond yields available today.
The caveat to the approach, however, is that Social Security dependent benefits may also be available for those in their 60s who still have young children in the home - an increasingly common situation, between couples who start a family later and the rising divorce rate that has also led to a greater frequency of second marriages with young children. And the availability of dependent's benefits can significant diminish the benefit of delaying Social Security; while delaying does increase the individual's own benefits in the future, along with potential survivor benefits, waiting may also permanently forfeit children's benefits that won't be available down the road (as the children may be too old by the time the retiree reaches age 70).
In light of this situation, planning for Social Security benefits with "young" children in the home (those under age 18) needs to be done more carefully. In some situations, the children may be so close to 18 that it's still worthwhile to delay. In other scenarios, the opportunity to file-and-suspend at age 66 - starting both spousal benefits and activating dependent benefits as well - may be the best way to go. But in many situations, the potential dependent and spouse's benefits are so large - even with the "maximum family benefit" limitations - that the best strategy, even in the long run, is to start benefits as early as possible (especially if the Earnings Test will not apply!).
(Michael's Note: Some Social Security claiming strategies discussed in this article have been materially impacted by the Bipartisan Budget Act of 2015, which has eliminated most forms of the File-and-Suspend strategy. See "Congress Is Killing The File-And-Suspend And Restricted Application Social Security Strategies" for further details.)
Social Security Dependent Benefits For Children And The Maximum Family Benefit
When someone is eligible for individual retirement benefits under Social Security, it is also possible for his/her dependent child (including biological children, [legally] adopted children, and even stepchildren) to receive payments as well. To be eligible, the child must be unmarried and under the age of 18 (if still in high school, the child is eligible until graduate or two months after turning age 19, whichever comes first). Children over age 18 are also eligible if they are disabled, with no upper age limit, as long as the disability started before the age of 22. The dependent child benefit is equal to 50% of the unreduced benefit the parent would receive at full retirement age (i.e., their Primary Insurance Amount or PIA), which means even if the parent starts early (reducing their own benefit) the child’s benefit remains the same.
Notably, a spouse who is under age 62 is also eligible for a spousal benefit under these rules, as long as the spouse is a parent caring for a qualifying child who is under the age of 16. Given this age threshold, it’s notable that the young spouse’s parent benefit will end earlier – by age 16 – than the dependent child’s own benefits, which lasts until 18.
If there are multiple children, each child is eligible for a dependent child benefit – in addition to a potential spousal benefit – but the total benefits paid under one person’s earnings record are limited to a maximum family benefit that varies from 150% to 180% of the PIA. To the extent that total family benefits – including the retiree and dependent children, as well as any spousal benefits paid based on the retiree’s worker record – exceed this maximum, the share of benefits for the spouse and dependent children (also known as "auxiliary benefits") will each be reduced proportionately until brought down to the family maximum threshold.
Example. James is eligible for a $2,000/month Social Security benefit at full retirement age. In addition, he has two young children and a younger spouse who would each be eligible for benefits (of $1,000/month each). James’ maximum family benefit under the 2014 formula would be approximately $3,478, of which his own benefit takes up $2,000/month. As a result, the remaining $3,478 - $2,000 = $1,478/month will be divided evenly amongst his two children and spouse, for auxiliary benefits of (only) $492/month. If one of the children turns 18, such that she is no longer eligible, the $1,478 will then be reallocated evenly amongst the two remaining beneficiaries (assuming both are still eligible) and their benefits will be adjusted up from $492/month to $739/month.
To be eligible for dependent child benefits, the worker-now-retiree must actually apply for his/her own benefits as well (similar to the rules for activating spousal benefits, including the young-spouse-as-parent rule). A version of the dependent child benefit also applies for young children of a deceased parent, in the form of a child’s survivor benefit.
How A Child’s Dependent Benefits Impacts Social Security Timing Decisions
In the “normal” context of deciding when to start Social Security benefits, there is a straightforward trade-off – the individual chooses not to receive benefits now, and in exchange receives higher benefits in the future. Thus, for instance, a retiree eligible for $2,000/month at full retirement age, could choose to take $2,000/month now, or wait a year and forfeit $24,000 of benefits not received in exchange for an extra $160/month (with an 8% delayed retirement credit) starting next year and going every year thereafter. Once adjusting for an inflation rate on the extra $160/month (thanks to cost-of-living adjustments) and a reasonable growth/discount rate on the $24,000, we can determine the “breakeven” period of how long the retiree must live for the trade-off to be worthwhile. The end point – it takes upwards of 15 years just to break even, but the Social Security delay decision can produce an internal rate of return (and especially a risk-adjusted return) superior to available investment alternatives for those who live materially beyond that point. In fact, delaying Social Security is often appealing because the situations in which it works best – unexpected longevity, high inflation, and poor market returns – are the exact scenarios that portfolio-based retirement plans tend to struggle, which means delaying Social Security is an incredibly effective retirement income hedging technique.
However, the situation shifts when there are dependent benefits (or a young-spouse-as-parent) benefit involved. For instance, if we continue the earlier example, assuming James is eligible for a $2,000/month retirement benefit at full retirement age, but has just turned age 62 and is considering whether to take a $1,500/month benefit now (starting 4 years early) or wait until full retirement age to get $2,000/month (or even delay all the way to age 70 and get $2,640/month). In the “standard” scenario, we could weigh this trade-off – James gets $1,500/month now, versus waiting as much as 8 years for a $2,640 / $1,500 = 76% cumulative benefit increase.
Yet if James has 10-year-old twins and a much-younger wife, and the family will be eligible for several auxiliary benefits for the next 8 years, including a spousal benefit and two dependent child’s benefits. As a result, the decision to delay means James gives up not only his $1,500/month early benefit but also $1,478/month of auxiliary benefits for the next 8 years (notably, available auxiliary benefits under the family maximum benefit are always calculated based on James' full PIA, even if his benefits are reduced because he starts early), in exchange for increasing his age-70-and-beyond benefit to $2,640/month. This represents a dramatically higher “cost” to James for considering whether to delay, as the family benefits will be permanently lost (as by the time James turns 70, the children will be 18 and no longer eligible for dependent benefits at all!).
In fact, at the chart above shows, delaying the maximum family benefit digs such a hole and forfeits so much opportunity for portfolio growth (either by failing to invest the family benefits payments that weren’t received, or by being forced to liquidate other investment assets that will no longer be able to grow because there were no family benefits payments to cover spending needs), that the decision to delay never catches up. By the time payments begin, the foregone growth on benefits is so large the gap just compounds wider and wider over time! So while the breakeven period at 6% growth (and 3% inflation) for a standard benefit delay decision is about 22 years (which would be age 84 for someone currently age 62 evaluating the decision), the breakeven period when giving up family benefits is never!
However, one planning opportunity for those considering family benefits is to file-and-suspend, which not only activates spousal benefits but also dependent child benefits. Accordingly, James could actually plan to delay just 4 years, then file-and-suspend at age 66 to activate the spousal and two dependent benefits, and then wait another 4 years for his own benefit at age 70. As the chart below shows, the impact of waiting 4 years is significant, but the “damage” is somewhat mitigated and there is at least some breakeven point (which a much-younger spouse might reach given the potential for survivor benefits!).
Strategies To Maximize Social Security Dependent Benefits For The Family
As the chart above shows, the potential of giving up significant family benefits can turn what may otherwise be an appealing decision to delay Social Security benefits as a hedge against longevity instead an adverse scenario where there is no breakeven to even recover by delaying benefits, or at least a situation where the breakeven is much further out than is typical.
Of course, the example above illustrates the absolute extreme – multiple family members that drive the foregone benefits all the way up to the maximum family benefit, who would have received benefits for exactly the full 8 year waiting period, resulting in the maximum possible “loss” by waiting. However, if the situation is that the age 62 retiree “merely” has one 16-year-old child whose benefits will be lost for just 2 years (from age 62 to 64) while waiting to age 70, the impact is diminished but can still be material and push the breakeven period out several years and require significant expectations of longevity to be worthwhile, as shown below.
While the impact of “just” losing 2 years of benefits for a 16-year-old child can be significant, the impact of losing even partial family benefits ramps up further as children are even younger. For instance, if the child in the above scenario was age 14, the impact would be even more severe, as delaying would forfeit not only 4 years of a child’s benefit, but also 2 years of a spouse’s benefit until the child would have been age 16 (assuming there is a spouse).
On the other hand, it’s worth remembering (as mentioned earlier) that in the situation where there is a much younger spouse, it may still be worthwhile to delay at least a limited time period for family benefits. The reason is that a younger spouse will be eligible for a survivor benefit in the future – which is increased by delaying – and if the couple has a big age gap, the higher benefits as long as the primary earner is alive plus the surviving spouse starting her survivor benefits at age 60 (at some point in the future) will have a very long time window to be able to reach the admittedly long breakeven period. In other words, even a 30+ year breakeven period may be appealing when involves increasing survivor benefits for a spouse who is only 50-something (or even younger) now and really could live and draw on benefits more than 30 years. (Though notably, this in turn is less important if the spouse would have her own retirement benefits from her own earnings record, diminishing how much extra dollars a survivor benefit really provides over what she would get already.)
For those who are already well into their 60s, the most appealing path to coordinating family benefits may be to file-and-suspend at their full retirement age, and/or weigh whether it’s worth waiting until full retirement age just to get the opportunity to file-and-suspend and then further delay to age 70 to increase personal retirement benefits (and future survivor benefits). In this situation, the retiree would still be starting some benefits a little early – at age 66 – but not as early as possible at age 62 (when file-and-suspend isn’t permitted).
Of course, the most important caveat to those considering whether to start benefits early to tap family benefits is the Social Security Earnings Test, where wages or self-employment income above the $15,480/year threshold can not only reduce the worker’s own benefits if started early (the Earnings Test no longer applies at full retirement age), but if the children (or spouse) are working and earning income over the threshold they can reduce their share of the family benefits as well. Obviously, it’s not necessarily helpful to claim Social Security early to generate individual and family benefits if some/most/all of them will be lost due to the Earnings Test anyway. (Again, as with file-and-suspend, this means it might be worthwhile to start “early” at full retirement age, but not “very early” at age 62).
Nonetheless, for those who don’t face the Social Security Earnings Test, the opportunity for dependent child benefits – and potentially a spousal benefit for to support the care for an under-age-16 child – can significantly change what may otherwise be an appealing decision to delay Social Security benefits as a longevity hedge. While the trade-off can be appealing based on an individual’s own retirement (and survivor) benefit, the additional “cost” to delay in the form of forgoing both individual benefits and family benefits can become too high a hurdle for delaying to be worthwhile. To say the least, this means anyone who has under-age-18 children (or dependent adult children who were disabled before age 22) should consider much more carefully whether it’s really a good idea to delay benefits or not, as there may be far more dollars at stake!
One more that you may want to include on the chart – File at 62 so that the auxiliary benefits can be claimed, then suspend at 66 (rather than wait until 66 to file and suspend simultaneously). The early claim and four years of collecting benefits reduces the “cost” even further and doesn’t strand the survivor with an exceptionally low survivor benefit.
I covered this in a newsletter awhile back, assuming benefits are spent rather than invested. Our Breakeven Calculator showed a breakeven age of 81 if he starts benefits at 62 vs. 70, and 82 if he starts benefits at 62, suspends at 66, and resumes at 70, vs. claiming at 70. But honestly, what parent of minor children can escape the earnings test?
Those taking in money from sources other than earned income, i.e. retirement accounts, inheritance, savings, pensions, accumulated wealth, etc.
Are public pensions (teachers, etc.) considered in the earnings test? If not, I would be able work part-part time and remain below the earnings test limit.
My wife and I are at full retirement age, she having applied for benefits at age 62 and I just this year applying for spousal benefits of one-half of her age 66 benefit while I wait to age 70 to apply for my greatly increased individual benefit. Sweet! But here’s the wrinkle that pertains to this discussion. We took legal guardianship of a 13-year old grandson last year from a neglectful single parent. Both parents are unemployed and economically distressed, the father being physically disabled; they provide no financial support for their son whatsoever. He is our dependent in reality and for tax purposes. Social Security claimed we were not eligible to claim dependent child benefits because we did not adopt the child. We fell through a crack in government policy that prohibits us getting any benefits for this child.
There are actually two ways of qualifying – if you adopted the child OR if his parents are disabled.
“A dependent grandchild or step-grandchild of the worker or spouse may qualify for benefits as a “child” if:
The grandchild’s natural or adoptive parents are deceased or disabled:
At the time the worker became entitled to retirement or disability insurance benefits or died; or
At the beginning of the worker’s period of disability which continued until the worker became entitled to disability or retirement insurance benefits or died; or
The grandchild was legally adopted by the worker’s surviving spouse in an adoption decreed by a court of competent jurisdiction within the U.S. The grandchild’s natural or adopting parent or stepparent must not have been living in the same household and making regular contributions to the child’s support at the time the insured worker died.
Besides meeting the requirement in (A) or (B), the grandchild or step-grandchild must be dependent on the insured”
This article came out at the right time with the right information just when I was researching what to do when I reach 62 and my kid is a few years from 18.
Glad to hear it was helpful! 🙂
The next question for me is when in the future should I take 401K withdrawals if I retire at 62. My understanding is that, before FRA, this will impact Soc Sec payments, except for perhaps the first year of retirement where one might work the 1st 1/2 of the year and get Soc Sec the 2nd. Should I take out a chunk at 62 and then just live off Soc Sec (and perhaps stock dividends or proceeds from the withdrawal) for the 3-4 years my kid is in high school, and then take out more at 67 when I defer payments until 70?
I don’t know your full situation, so maybe this will work for you and maybe not. If you can manage cash flow, you might want to consider doing Roth conversions from your 401k once your income drops. This will allow you to enjoy a very low tax rate on 401k money, so long as you target the right tax bracket / Roth conversion amount. In my case, it makes sense to borrow against the house to fund expenses while I move money to Roth, in anticipation of 401k tax rates when I hit mandatory distribution age. I’m paying 10% state and federal tax (total) on 100k annual conversions. If you convert 50k or so annually, you’ll likely owe no tax. This kind of tax avoidance easily justifies paying single digit rates on home equity loans. It might even reduce the income used in determining how much of your ss benefit is taxed.
You don’t want to withdrawal too much from your 401k at a time because it can bump you into a higher tax bracket. It can also make more of your SSA benefits taxable. The key is to take out small, consistent amounts from your 401k each year. The dividends you mentioned are paid within the 401k, so there is no need to take large distributions all at once.
Michael,
My husband was killed in an automobile accident last month. He was working driving a company truck. I haven’t been able to work for several years because we have a 35 year old son that has cerebral palsy and started having seizures a few years back. My son receives SSI and I was wondering if I would be eligible for any kind of social security? I am 55. We live in Ky and all that my son receives is $733.00 a month. Do you know anything about workmans comp?
In my situation, I just passed my 62nd birthday, and I have a 14 year old son; I also am divorced with a marriage that lasted over 10 years. My ex-spouse is also 62. I am self-employed and making significantly more than the maximum earnings test. What is my best option? Is it possible to claim and suspend at age 62? Under my own earnings or under my ex-spouse? If I claim now, under my own record or under ex-spouse, and I exceed the earning test, what happens? Does my dependent son keep his benefits and are mine suspended? What is the net effect of this on my benefits long-term?
My husband turned 65 in Dec. 2014. I am 49 yrs old, 50 in June, We have an 18 yr old (graduates in May 2015), a 14yr old and a 10 yr old. All are in school. We just read about these benefits for our situation. My thoughts are to file now, instead of waiting for my husband to turn 67. Do you know if any of these benefits are retroactive? And advice on whether to take this now or wait. Thank you so very much.
My 16-year old son received Social Security benefits in 2014 because I started collecting my SS retirement benefit early last year at age 62 and, as your article explains, it made sense to me to start early for that reason. But now as I am working on my taxes for this first year of such income, I cannot find any clear information on whether the benefit my son got is taxable on our married filing jointly return, or if he has to file his own return (my wife still works and so I understand MY income from SS is taxable), or neither. Not only can I not find any clear material on this, I cannot find anything that really even talks about it: I’ve used Google, various FAQs, and various IRS and SSA publications… this seems crazy. It does not help that many webpages and government publications talk about “earned income” and “unearned income” but I cannot tell if SS benefits (for me, or for my son) are earned or not. The one fact I think I gleaned from my reading is that SS “disability” payments are not taxable, but my son’s payment is not for a disability but because I have retired and started collecting.
Can you help me on this issue?
Wish I had an answer for you. I’ve been trying to figure out the same thing. I took benefits at 66 (full retirement) even though I still work because I had two minor adopted children (then 13 and 15) and the numbers made sense. I was advised that my benefits would be taxable since I exceeded the earnings threshold, but the children’s would not. However, both of them had summer jobs last year and I can’t figure out what their tax obligations may be. Can somebody out there answer this one?
The SSA benefits that your son is receiving should be reported on his tax return. They will be taxable if 50% of his SSA benefits plus his other income are above $25,000, which is unlikely.
It may also affect your taxes because if his benefits are used to pay for his own support, then you will not meet the support test to claim him as a dependent.
i’m with you on this; have done extensive research/reading, but found no clear answers until today when I clicked on a link & led me to Avvo.com. You’re free to ask questions & social security lawyers will answer; they’re prompt too! It was such a relief because all I needed was just 1 simple answer. Your case is almost similar to mine. Try it!
My husband is 62 and has applied for SS. He has 2 girls from a previous marriage and was told they would each receive $500. Does this money go to the ex-wife to decide how to spend, or does it go into an account for them? Does he ex-wife receive any benefits?
Hi, Michael, I was reading your wonderful info about how to maximize Social Security benefits but wasn’t able to understand how the Total Family Benefit apply. I’m planning to retire at 62 (1.5 years from now) At that time my 2 minor children will be just 9.5 and 4.5 years old, and my wife of 40 years old will be taking care of them. My retirement benefit at 66 is $963 and $710 at age 62. My Total Family Benefit is $1,467 (As of my 2014 SS statement) My question is: It is my own Retirement of $710 INCLUDED IN MY TOTAL FAMILY BENEFIT of $1,467? or my $710 is separate and apart of that $1,467 making a total of $2,177? In short: Will I be receiving $2,177 or just $1,467? I will be thankful for your orientation.
Both my spouse and I are approaching full retirement age. We have a dependent child that will qualify for SSA benefits. I am planning to file and suspend to provide a spousal benefit and our child would also draw benefits. My question is about the family maximum. Since I am not actually receiving any benefit, would the SSA exclude my suspended benefit when calculating our total family benefit for the family maximum determination?
I am 62 years old and have applied for SD retirement benefits. I have one son who is 15 years old and who has been living with his mother since his berth in a different state.
The SS agent working in my case advised me that possibly my son will not be entitled to the benefits of my retirement.
Could you possibly advise me on this matter?
Hi there, I am trying to figure out if my 8-year-old daughter is eligible for retroactive SS benefits based on my work record. I turned 66 in June 2014 but only filed for SS in August 2015, after finding out that my child and spouse would receive benefits as well. They are now receiving SS benefits, while I myself have suspended mine for the time being, in order to earn more credits. The SS letters we just received stated, however, that my filing is backdated now six months to February 2015 (6 months). Does that make my spouse and child eligible as of February as well? How do we go about getting the retrocactive payments?
Thanks!
If two siblings get survivor benifits and the oldest is a disabled adult resulting from birth and the other sibling turned 18, graduated from high school and got married. Would the married sibling lose their benifits and would disabled sibling get an increase if it does?
If a person is receiving Soc. Sec. Benefits and his children are receiving family benefits. If custody is taken away by the ex-spouse, can he stop the benefits for the children because they are no longer his custody.
I just got approved for ssdi. The award was 2359 a month. I have a wife and two minor children. Are the dependent checks payable directly to my three dependents? I would then have to establish accounts for my 12 year old and my 18 year old? If I did that then the money is not taxable to me based on the monies payable directly to them right? Any help I can get on this would be appreciated. Scott
Question….with all the details re: minor dependent child benefits and spouse child-in-care benefits for a spouse with a child under 16…what happens when the child turns 16 and the spouse is only 59.. Her child-in-care benefits end. Does she then file again for full spousal benefits 66 ? Is what she receives at 66 the same dollar amount she got for parental benefits – or is it adjusted related to the now full plus more retirement benefits amount of the 70 year old retiree – primary income earner?
This is for anyone who has already started receiving child and parent benefits. How long did it take you to actually start receiving payments? Our Sept. 2015 apps. all stated 45 days. My husband finally received his letter in early December, SS activated and suspended. We have heard nothing regarding myself or our 14 yr old son. Calling to try and get info has usually not been very helpful, the last time my husband tried he was told not to expect to here anything before February. Is this typical?
Here is our strategy under the recent changes made to the “file and suspend” rules. Our youngest, the caboose, will be 14 when I turn 62. The plan is for me to take my organization’s retirement and file for SS at that time, file for the child, have my wife or I be the representative payee, and have the benefit direct deposited into an account in the child’s name (like a supervised account) where it will remain as a college fund. My wife, several years younger than me, will continue in her profession. I hope to work enough each year to at least make the earnings test limit. Subsequently, when the child reaches 18 and graduates high school, their benefit stops. Then 66 years old, I will suspend my benefits for up to four years to realize the 8% annual increase in my benefit amount. Good luck and good health to all, nice to see there are other older parents out there enjoying their children and life!
I will be 62 in july 12 and still workinga with $56k income and i have a 3 1/2 year old daughter. Will i be able to file and suspend so she will start to get benefits?
No, file and suspend only applies at full retirement age of 66, and by the time you reach that age in 2020, the rules will long since have lapsed.
That aside, since you have significant employment income above the Earnings Test threshold, you would not be eligible for Social Security benefits anyway as long as you’re working. You can only receive employment income AND Social Security benefits after full retirement age (again, age 66).
– Michael
In December 2016, I will be 66 and at full retirement age, my wife will be 54. We have 2 children, age 11 and 17. Can I do file and suspend and allow my children to receive benefits up to age 18?
No, at this point if you suspend, you will suspend ALL benefits based on your work record, including your children. This would have worked in the past, but the file-and-suspend rules changed, effective April 29th. See https://www.kitces.com/blog/navigating-the-effective-date-deadlines-for-the-new-file-and-suspend-and-restricted-application-rules/
Sorry,
– Michael
Thank you so much for your response. The blog says: “For younger parents who won’t be full retirement age until after the effective date, the only option will be to either start all benefits – including both retirement, spousal, and dependent/disabled child – or delay all benefits.”
How do I determine exactly what benefits I can receive this December when I turn 66 for me, my spouse and children? That way I can see based on the children’s ages if it makes sense to take it then or wait until 70.
The small % you will gain by waiting about four years will probably never catch up to what you lose by not taking early SS plus losing four years’ worth of your kids’ dependent benefits. I just found (with one kid) that it would take me 19 years to make up for early SS (taking it at 62 instead of 66yr 4mo) because of what I’d lose from not collecting my son’s benefits nor my own albeit reduced amount for four years.
I will be 62 this November (2016) and have two children aged 14 and 11. My May SS statement estimates my payment at 62 will be $2,030, or at 66 = $2,786. If I file for benefits at 62, then I will receive the $2.030 and each son would be eligible for ~50% of my full retirement benefit = $1,393/each. However, this would be a total family payment = $4,816, which will likely be reduced because the May statement showed a family maximum of $4,770. Does this look correct?
Also, I claim both children on my tax returns as dependents. Will their receipt of SS Benefits have any impact on their eligibility as my dependents for income tax purposes? I do not expect to continue to have significant earned income after 62.
I can’t answer your second question but as to your first, yes, they will reduce your payments to stay within the family maximum. But bear in mind that it’s crazy to wait to full retirement age in your position. You will give up over four years of SS payments for your kids PLUS for yourself. will be 62 in 2018 and my son will be 7 years old. If I retire then (at 62) and also get benefits for my son, it would take me 19 years to get back the difference by waiting til 66 yr 4 mo (my full retmt age) – if I live that long. I fully intend to take early SS and claim benefits for my son at the same time.
They would be eligible for 50% of your FRA retirement benefit, combined. They would share the $1393, they would each get half, $696 each. (SS rounds down) Than when the older child no longer qualifies, the younger child will receive the full amount.
why is it because there are more than 1 child they have to split the amount of 50% of the FRA when the family ma amount is still with in the limit>
Is it not correct that each child collects 50% of the FRA as long as the Family max is not exceeded??I have no wife that is eligible to receive but i do have 2 children ages 1 and 3 with ssn”s and US passports
It is a very great joy and blessing to my life, i and my husband have begin childless for 8years now due to my inability for me to give birth and it has resolves to problems everyday in my home,so i visited a female friend in Florida,and she came up with an idea of adopting a child which i never had in mind,and now i got no choice than to apply for a child and to my surprises everything went easily and today i am happy with the Hansom little boy(Wisdom)i adopted from the Inter country child adoption center.in case anyone may need the same help you can E-mail the office directly on [email protected]
I have two sons receiving SSI and a daughter (the youngest) who is 7. All three will be minors when I will retire at age 62 in 3 years (with a 45 year old wife). Who is eligible for part of the SSA? Does the boys SSI count toward the family maximum?
Nice to know I’m paying for a bunch of welfare queens, Wh not pay for them yourself? Tell your wife to ge a damn job.
I am 65. Will my over-the-limit income affect the benefits of my underage son and benefits of my spouse who does not work and cares for him. Will their benefits be suspended as well until I’m in my 66th year and pass the earnings test?
Short answer, yes.
Michael, can a disabled adult child start collecting SS benefits based on his 58 year old mother’s $500 SSDI benefit, then switch to a higher benefit when his 62 year old father starts collecting his own retirement benefit?
The answer is yes. My disabled daughter was collecting on her father, but I recently retired, and my social security amount was higher than his. She will be collecting off of my social security amount. Make sure you call social security and tell them you want to make the switch.
Hi I will be 62 in April of 2018 ,my 2 twin girls will be 9 years old ,my wife will be 40.I am currently working and make in excess of 100k .Here is my question if I file at 62 and my wife also files for spouse benefits under my benefit and my 2- 9 year old children also file and the 3 of them do not have any income, if I continue to work and earn the 100k does it effect just my benefit as far as the earnings test goes or does it effect the whole families benefits thanks
My understanding is that it does affect the family benefit since they are drawing based on you. It is pretty clear if you read the SS website, though a bit confusing at first glance. You will far over the current $15,720 earnings limit. What a joke that is. I’m 60 with a 12 yr old, so face a similar dilemna in two years. You may as well keep working, and enjoy your family!!
I want to retire at 62 in 2017 to Thailand and stop working in August. I made about $46,000 in 2015 and have been working overseas since 2007. I have a 5 year old daughter who is an American citizen. My noncitizen spouse does not qualify. I read in the article above that my daughter would receive 50% of my full retirement benefits. Is that 50% a hard figure?
My disabled adult child is on Social Security (Disability), SSI (Disability), Medicare. Since she has been disabled since she was 9 years old and I’m retiring she qualifies for the child benefit by Social Security (Retirement). Does she lose her Social Security (Disability) and
SSI (Disability) check?
I am 66, started drawing social security 4 years ago…. 2 years ago I married my 37 year old Peruvian wife… The two of us have been renting an apartment in Lima and both supporting the family – which included me, my wife and my 3 stepchildren all under 15 years old – with her small income from her job there in Lima and with my social security. My question is, of course, can my wife and stepchildren qualify for benefits up to the maximum family benefit allowed? My wife now has received her Green Card and has a social security number, the kids have no social security numbers and their petitions for visas are in process. The kids’ biological father does not contribute to their support, just their mother and I do….
I was born in Apr 1954 and began receiving early retirement (age 62) in 2016 of $1,832.00 a month. I married in 2015 to a much younger woman with a 7 year old child. They are in the process of immigrating to the US from Philippines and should be here in 2017. I understand I can file for benefits for my step-son once he arrives and receives a SS# and there is also benefits available for my wife. I plan to start a p/t job this year which will pay $25K annually. Two questions 1) Is it more advantageous to file for just the child benefit or a combination of the child and spouse benefit? 2) I understand my benefit will be reduced by approximately $4,000.00 because of my employment but will the family benefit also be reduced? Thank you so much.
Hello. Did you ever get your questions answered? I am kind of in the same boat as you.
Wayne
I am planning on retiring in January at 63 years old. My wife is 71 and has been collecting ss since she was 62. She doesn’t get much. My daughter will be 10 years old and she is collecting on my wife’S SS. When I retire I assume my wife can get half of my ss at the early retirement payment and my daughter can get half of my full retirement payment. Is that correct? Also do I add my daughters SS to our income when I file a joint tax return or do I file an income tax return separately for my daughter?
I see that this is an old article… Does this still apply today? I know that some of the rules have changed. My husband is 64 1/2. I am 45. We have two children 12 & 14. The plan was to file & suspend at 66, but then I read that was no longer an option. Can anyone help? Should he just file now??
I am planning to file an early retirement benefit at 62 years old. I have a disable kid (18 yrs old) and 2 twin daughters (7 yrs old). My wife (50 yrs old) is getting some money from IHSS (In-Home Supportive Service, California) for my disable son. Question: Is this IHSS income counted as earned income for my family retirement benefits? Noted that this IHSS income is exempted from IRS income tax. Please help! Thank you very much to whoever can help.
I am planning on retiring at 62 in June of 2018. The retirement estimator says I will draw $1050 a month based on last years income. I have 3 dependent children ages 7,9,and 10. Is my SS based on just last year or on my past employment history. I made a lot more in previous years than last year. Their mother passed last year but didn’t have enough in her SS account for me to apply for survivor benefits for them, so I had to take a lower paying job to stay home with them during the night. I understand if I draw $1050 a month, they would each draw $525. This would give us a total of $2625 a month. But it seem as if they would base it on my total income over the years it would be higher. Is that the way it works or not. I need to start staying home to do a better job of parenting as the grow older. Someone please advise. Thanks.
Your dependants are eligible for social security benefits on your behalf. If you have taken early retirement then your child will start receiving the benefits earlier. You need to make social security card applications to apply for these benefits
Spouse benefits are always complicated to understand. You cannot make an estimate about the payments you will receive on your ward’s behalf. This is somehow is the best article on the topic available on the web. Thanks for this.
I am receiving SSDI for a brain injury. I receive 3 direct deposits each month. 1 is the amount for myself, then I receive 2
other deposits for each of my teenage children. They each receive $456.00 per month in their
own names. My own disability amount and
the two separate amounts for my children total to make our “maximum family
benefit”. My question is that since my
son (oldest) is turning 18 AND graduating high school next spring, will his
benefit be added to what his younger sister receives since she will only be 16?
Will her current amount double? Also,
would these changes be automatic, or would I have to re-apply, in some way, for
my daughter to receive her older brother’s benefit once he “ages out”? Thank you very much.
I have not seen my exact situation on here so I will ask some specific question. I have 3 years before turning 62 and I need to know exactly what I will be dealing with at that time. I have 4 adopted children who get a post adoption subsidy. They will be 7,7,9 and 11 when I turn 62. I am divorced and have never had a very large income. I have read that I can file on my ex husband’s income (we were married for almost 13 years). He always made the bulk of the income. Probably 3 to 4 times or more than what I made. I don’t know what I will qualify for but I have read it is 1/2 what the ex should be able to get and less than that if I file at 62. I don’t know what I can expect to get for my children. Will the adoption subsidy lower or wipe out what I can get for them? I currently work and make between $1,500 and $1,600 monthly. How can I find out exactly what I and my children can expect to receive and whether I should file early or wait until I reach full retirement? I really don’t know how long I can hope to continue working, but I expect that I will have to until it isn’t physically possible to any more. Do you have any suggestions or answers for me?
When I turn our son will be 12. Can I apply for me suspend that payment while he gets half of what i would have received at FRA? then I delay again at age 66 wait until 70 to start my SS.
How does the impending (2033) SS benefit cut of 24% affect this calculation?