Waiting to be uncovered are three Social Security secrets that remain well hidden but may very well affect you. Since you understand how important your monthly Social Security check is, you are better off uncovering these secrets and implementing the right strategies to create the perfect Social Security picture for you. Perhaps with these secrets, you will be able to make your Social Security checks work for you. For the approximately 64 million citizens receiving their Social Security checks, this could be the important information that they need to discover to make their Social Security checks work for them.
Secret 1: Divorcees may still be entitled to their ex-spouses’ benefits
The first secret affects divorcees who may still be deemed eligible to collect Social Security according to their ex-spouse’s record. To be deemed eligible, retirees had to:
- Have been married for at least 10 years.
- Not remarrying to be eligible for this option.
- Be 62 years or older.
Citizens with exes who earned more than they did are eligible to claim up to approximately 50% of their spouse’s full retirement benefit without reducing their benefit. This is a great option for citizens whose work records show that they are eligible for lower monthly payments than their breadwinner ex-spouses.
Divorcees who make use of this option must not be remarried, however, their ex can be remarried. Divorcees need not have to permit their ex-spouses to apply for this option. Widows have somewhat of a separate rule to follow whereby they can collect survivor benefits from 60 years of age, and they can receive about 100% of their late spouse’s benefits if it exceeds their own.
Secret 2: Claims can be undone (just once)
Although many retirees seem to believe that if they start receiving their Social Security benefits, they are locked in for life, this is not the case. Social Security retirees are allowed one do-over, however, while adhering to strict conditions.
For many retirees who regret starting to collect their Social Security benefits earlier, they might have heard what a big mistake it is to claim Social Security benefits earlier than full retirement age. Citizens who have already applied for this benefit earlier and have come to realize the value of waiting have the option of withdrawing their application. All Social Security beneficiaries who applied to claim their Social Security benefits earlier can withdraw their application within 12 months of starting to collect their benefits. The catch is that retirees who withdraw their application must repay every dollar that they received from the Social Security Administration.
Once the 12-month window has passed, citizens who are not yet 70 years of age can choose to suspend their benefits. When suspending benefits, beneficiaries allow their monthly payouts to grow until they reach 70 years. Thus, they increase their benefits by 8% yearly.
The secret as to why knowing this helps
Citizens who have already made the mistake of claiming Social Security benefits too early have two other options available to redeem themselves and allow their Social Security to grow yet again. The biggest secret that most beneficiaries should note is that when it comes to Social Security benefits, timing is everything. Applying for benefits at the right time means making retirement for you.
Secret 3: Working and receiving benefits
For many Americans, they will need to work whilst collecting benefits from the Social Security Administration (SSA). It is permissible for citizens to work while receiving their Social Security benefits provided that they take heed of their income limit if they are of full retirement age (FRA).
Retirees not yet at the full retirement age (aged about 66 or 67) could earn up to $23,400 and not have their benefits affected. Citizens who earn more than $23,400 at FRA will have $1 deducted for every $3 they earn above the limit.
Social Security secrets are great to uncover as they can prevent you from making costly mistakes and may even help you to avoid running out of money during retirement.
