Can my family collect Social Security retirement benefits?
Yes!
A little known fact is that benefits are available to the children of a retiree who is collecting Social Security.
Normally, I recommend waiting to claim benefits, but if you have minor children, it may make sense to claim earlier.
For example, George is 61 and Jane, his wife, is 43. They have two children, ages 7 and 4.
At full retirement age (FRA) of 66, George can collect $2,500 per month, his primary insurance amount (PIA). If George starts at 62, his benefit is reduced to $1,850; BUT his family can also claim benefits.
Each of his two children could receive a payment. Children can receive benefits up to age 18 (or 19 if they’re still in high school.) Jane can also collect a benefit until the youngest child turns 16.
There is an upper limit on this option; known as the Maximum Family Benefit.
If George stops working at 62, claiming early could be a smart move for his family.
But with a wife nearly 20 years his junior, the couple should also be concerned about Jane’s survivor benefit. Collecting benefits early leaves her with a reduced survivor benefit, if George should die.
There are options and strategies for dealing with this challenge. If this situation fits your family or someone you know, we suggest you get help from a financial professional who understands Social Security.
It is complicated. You don’t want to make this decision without all the facts.
As always we are here to help create your best 2nd Half.
Contact us by email or call the office at (719) 630-0600 to set up an appointment.
See the index showing all of our Social Security Strategies and Tips.
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1-420619 9/16/2015
