05 Jul Tips for Women to Claim Social Security
Social Security is a benefit many of us look forward to when we near retirement. We can’t wait to start collecting monthly payments to help us retire comfortably after we’ve finished working. But claiming Social Security for women can be tricky, and whether you’re married, divorced, or widowed, it’s important to understand the ins and outs of the process, so you can maximize your cash flow.
Thinking about Social Security
Think it’s too early to think about Social Security? Think it will somehow work out on its own? Think again. Social Security can play a big part in your overall retirement plan and financial future, so don’t leave it to chance.
Regardless of your marital status, when you’re nearing retirement, you’ll be glad that you took the time to learn about it and understand your options so that your financial outlook is the best it can be.
What Is Social Security?
Social Security provides older Americans and disabled people with part of the financial funding they will need to pay important retirement costs. Among the benefits are:
- Lifetime retirement income (starting at age 62)
- Payments adjusted for inflation
- Some spousal and survivor benefits (as early as age 60)
- Special tax treatment
Of course, there are limitations too, so it’s important to get your facts straight and to correct any misinformation you may have. What’s great about Social Security is that family members other than your spouse (like your dependent children, disabled people, or dependent parents) can also take advantage of benefits. Realize that there is a family maximum limit formula used to calculate these payments.
Additionally, remember that sometimes family members who are helping women claim Social Security may have the best intentions but might not have a full understanding of concepts, such as full retirement age requirements, benefits and drawback of filing early, and Social Security widow benefits. Well-meaning family members also may not fully understand how taxes and pensions affect Social Security. Instead, consulting with a reputable financial planner can ensure you are doing what’s best for you and your financial goals.
Practical Tips
#1 Timing Is Everything
When you file for Social Security benefits matters. How much you receive depends on when you claim your benefits. For instance, if you file when you’re 62 years old, your Social Security payments will be lower compared to if you had waited until your full retirement age (between age 65 and 67). The longer you wait to file, the larger your checks (up to 76% more!), so if you can wait until you’re 70 years old, you’re golden! Actually, you could be set up for the rest of your life.
However, not everyone can wait until they’re 70 years old to start receiving Social Security benefits. So, if you’d prefer to begin receiving your benefits right away, you can file 3 months before your eligible birthday for Social Security benefits. Since it takes about 3 months for your paperwork to process, it will be complete by the time you’re age eligible, and you can start receiving your benefits.
As you can see, timing matters, so be sure to consult with your financial planner to determine what’s best for you, your situation, and your long-term financial goals.
#2 Get Your Documents in Order
Applying online at Social Security Administration’s website is the fastest and easiest way or women to claim Social Security benefits. However, if you aren’t tech-savvy and would prefer a more traditional method, you can always apply the old-fashioned way by submitting documents in person directly to the Social Security Administration.
Here’s what you’ll need to complete the process:
- Your application
- Original birth certificate
- Citizenship or naturalization papers
- S. military service papers
- Last year’s W-2 form
You’ll also need:
- Your date and place of birth
- Banking information, including routing number and account number
- Names and addresses for recent employers
- Dates of military service
- Spouse’s (or former spouse’s) name, Social Security number, and date of birth/age
- Social Security statement
- Divorce papers (if applicable)
Gathering the proper paperwork ahead of time will only help to move things along more quickly for you, so take the time to locate them.
#3 Consider Your Marital Status
- If you’re single (never married), then claiming your Social Security is a pretty straight-forward process.
- If you’re married, it depends on if your husband is still alive or if you’ve been widowed. First, understand that just because your husband files doesn’t mean it’s the right time for you to file (especially if you’re younger) because you will probably collect much less than you could if you wait a few more years.
If you’re a widow, you need to familiarize yourself with the Social Security widow benefit. This can be complicated, but basically, the amount of your widow benefit will depend on whether your husband died before or after he applied for Social Security benefits. Consult with your financial planner to determine your status here.
- If you’re divorced, you may be able to collect some of your ex-husband’s Social Security benefits as long as:
- You’re age 62 or older
- You were married to your ex-spouse for at least 10 years and you’ve been divorced for at least 2 years
- You’re not remarried
- Your Social Security benefits are less than his
If you said “yes” to all of the above, then you may be entitled to up to 50% of your ex-husband’s Social Security payment even if he’s remarried. If your ex-husband is deceased and you said “yes” to all of the above, then you may be able to collect 100% of his benefit beginning at age 60 (though the amount you collect will be significantly less than if you wait until you’re older).
If you’ve been married multiple times, you can choose which ex-husband you’d like to collect from. If you’re still working and your Social Security is higher than your ex-spouse’s, you can even choose to delay collecting on your own benefits (allowing them to increase) while collecting on his.
There are some other special circumstances and situations when claiming Social Security from ex-spouses, so be sure to contact your local Social Security office so you’re clear about how much you can actually expect.
Here’s the bottom line: don’t go it alone. If you’re feeling like claiming Social Security and navigating retirement options is overwhelming, contact www.russellandcompany.com today, and let them help you figure out the best strategies for your personal situation. It could make a huge difference between having more than enough to live on versus barely scraping by.
This newsletter was prepared by a third party company to be used on the Russell & Company and Simple Money Tips for Women websites.
