Posted on 05/12/2010 12:42:03 PM PDT by Kaslin
Dear Carrie: While I am still employed, can my nonworking wife retire and receive Social Security benefits? -- A Reader
Dear Reader: There's a lot of confusion about whether or not a nonworking spouse is entitled to Social Security benefits, so I'm glad you asked this question. The short answer is that a nonworking spouse who has reached age 62 can collect Social Security based on the working spouses earning's record, once the working spouse has filed for benefits.
You say that you're still employed, so I'm going to assume that you're not collecting Social Security yet. I'm also going to assume, for the sake of simplicity, that your wife doesn't qualify for her own benefits. (If she did, she could file in her own name regardless of your filing status once she turned 62.) If my assumptions are accurate, while your wife may be eligible for Social Security benefits, she can't collect until you file for benefits yourself.
This sounds clear enough, but as with so much that has to do with the government and money, there are a number of rules and exceptions to complicate things a bit.
WHAT AND WHEN A NONWORKING SPOUSE CAN COLLECT
The Social Security benefit of a nonworking spouse is 50 percent of the full benefit of the working spouse. So if your full benefit is $2,000, your wife would be able to collect $1,000. However, the age limits that apply to worker benefits also apply to spousal benefits. There are two choices. Your wife can:
-- Take Social Security at age 62. But the 50 percent spousal benefit would be further reduced by about 25 percent for the rest of her life.
-- Wait until what the IRS designates as her "full retirement age" (between 65 and 67, depending on when she was born) to receive the full spousal benefit. In this case, she will receive 50 percent of your full benefit.
Just for the record, there is an exception to the age requirement if your spouse is caring for your child who is under age 16.
WHY TIMING IS IMPORTANT
Both you and your wife should give a lot of thought to when to begin collecting Social Security. For instance, if you applied early at age 62, your benefit would be permanently reduced. If your wife also elected to take Social Security early, her 50 percent benefit would be permanently reduced. That could make a big hole in your monthly income.
While it might seem smart to begin taking benefits as soon as possible -- after all, you'll then collect checks for a longer period of time -- it's a good idea to look at your "break-even age" before making a final decision. This is how long you need to live to make sure choosing a later date will give you greater lifetime benefits. You can find a break-even calculator at IRS.gov. It's definitely worth a look. Chances are, the longer you can each wait, the better.
ANOTHER STRATEGY
You don't say how old you are, but if you've reached your full retirement age, you could file for benefits, even though you're still working, and your wife could then file for the spousal benefit. At full retirement age, there's no limit on the amount you can earn and still collect full benefits. However, if you prefer to delay taking your own benefits, there's another strategy to consider. The IRS lets you file for Social Security and then immediately suspend your benefits. This would allow your wife to begin collecting a spousal benefit based on your earnings while you continue to work. At the same time, your own future benefit would continue to grow. Another plus to this strategy is that the larger your eventual benefit, the larger your wife's survivor benefit. That's because, should you die first, your wife would collect 100 percent of your Social Security.
As you can see, there are a number of things to consider. I'd suggest you talk to your financial or tax adviser about the best strategy for both you and your wife. A little planning can help maximize the total benefit for your household. And why not? After all, you've earned it!
My wife and I file a joint return. My earnings are her earnings as well.
I work hard so she doesn’t have to have a job outside the home.
She damn well entitled to collect social security (when the time comes) from our joint income and taxes paid.
He’s an altar boy! WOW! So he is well behaved - he has his emotions in check. Not so with the two friends I mentioned. Totally all over the place - and not because of a lack of discipline but mentally they are unable. They cannot be left alone.
I don’t see it as a rant. You are faced with a difficult situation and when it concerns our children - it takes on another level entirely, IMO.
Someone was exaggerating a situation to suit their argument, that was the reason for that comment.
I’m rooting for Johnny, MrSpellingAce!
When it says nonworking wife, it means the wife had no paying job. That does not mean she laid on her couch all day doing nothing but eating Bonbons *rme*
Show me where you think I need that info? Did I imply that in any way? Or did I give that definition of a nonworking spouse? And was that my focus or not paying into the system? Don’t apply what others have said to me.
Get your facts straight instead of being quick to ‘act superior’ - and end up looking like a fool.
Seriously there sport, if mom’s were not staying home taking care of kids someone else would be getting paid to do it. So they are working they are just not getting paid. Now I don’t know what happened to you that makes you so bitter about it but would you rather have the state raise kids in return for the $$ the system will get from it?
Take it easy there sparky, your gonna hurt yourself. Have your wife fix you a cocktail and relax.... unless she’s just laying around the house....then it’s no wonder your so upset.
This is hysterical. I’ve always wondered the same thing.
Does welfare count as income? And can they also include those $7,000 Earned Income Tax Credits as income, too?
Be careful with your words. Even the title of this article, with "non-working spouse", is risky.
Women have screamed from the mountaintops for years that they have "the hardest job in the world."
I must have missed it this year, but every Mother's Day that ridiculous survey is released that says that women that don't have jobs should be paid something like $175,000/yr, because they are doctors, accountants, day care workers, maids, drivers, executive assistants, ad nauseum.
You see your error so your choice was not to admit it but to act childish with the same old blah, blah, have a drink, etc. Acting like just another chump - a dime a dozen and BORING!
WE work in this house - sorry to disappoint you little one!
btt
Its a joint tax return.
It is our joint income.
My wife is not directly employed, but without her support taking care of things on the home front, I could not make six figures where I work, so indirectly, she contributes because I pay more in (double, at least) as a result of her efforts.
It could be argued that the wife's duties at home (keeping house, raising children, etc., etc.) freed her husband to work more hours, earn more income, and contribute more into the system.
“I honestly have to say - FR has gone down the tubes.”
Don’t let the door hit you on the way out.
Sorry you feel insulted that you feel the need to be snippy.
But the truth is - FR had many sharp posters when I lurked.
And over time they dwindled away. You were here then, you must remember.
And my response wasn’t directed at you but many posters here - who couldn’t stay on topic. Your response was more on topic than the lot.
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