September 24, 2021

Ask Larry: Will this strategy maximize the benefits for our survivors?

Today’s column discusses the question of strategies for maximizing the welfare of the survivors, whether the SSA will recalculate the benefit rate based on the continuous income taxed by the SSA, and whether WEP is applicable to pensions based on aggregation agreements. Larry Kotlikoff is a professor of economics at Boston University and the founder and president of Economic Security Planning, Inc, a company that maximizes my social security and MaxiFi Planner sales.
See more Ask Larry’s answer here.
Do you have a question about social security that you want to answer? Ask Larry about social security here. Chapter
Will Such A Strategy Allow My Wife To Enjoy The Widow’s Best Interests Only?
Hi Larry, I will be turning 70 at the end of this summer and will be claiming my social security pension soon. My wife is 62 recently. I’ve read that couples can maximize their joint social security expenses by allowing low-income people to sign up as soon as they are 62, while high-income people postpone it to age 70.
As I pointed out, I have a shorter life expectancy than my wife, so with this strategy, she will receive a lower expense based on her retirement benefits, but when I die, she will receive higher survivor benefits. Does this sound like our best marriage strategy to increase total payments? Thank you,
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Hello, the application strategy you mentioned is of course your best choice, but it highly depends on the relative welfare rate of you and his wife. In addition, if your wife is still working, her ability to receive benefits now will depend on her income.
By the way, it doesn’t mention in which month your wife turns 62 or in which month you will reach 70, but if your wife applies for your benefits before you turn 70, you can get the date before that month. Receive spouse benefits within months instead of reaching 70 years of age.
I don’t have enough information to give you specific suggestions, but it seems that you and your wife might consider using my company software, maximizing my social security or MaxiFi plan, to fully analyze what you are doing and determine the maximum best strategy to optimize Your interests. Social security calculators provided by other businesses or nonprofits, if carefully constructed, can provide appropriate advice. Preferably, will Larry
Social Security recalculate my benefit amount to include income after I started receiving benefits?
Hi Larry, I started receiving social security retirement benefits many years ago, but after many years I am still getting social security tax income. Will SSA recalculate my benefits to include my income in subsequent years? Thanks, Celia
Hi Celia, yes, when beneficiaries have an additional year or years of income to increase their welfare rate, Social Security will automatically recalculate the Social Security retirement benefit rate.
However, social security retirement benefits are based on the average earnings of a person’s wage index over up to 35 years of social security coverage. Therefore, if the income is greater than one or more of these, the additional annual income will only increase the well-being of one. The 35-year rate is currently used to calculate the individual’s benefit rate. Better yet, does Larry
WEP apply to me?
Hello Larry, I will be eligible for full retirement in early 2022, at which point I will build a good income in the United States for 21 years. I have worked abroad for 18 years, there is no withholding of social security taxes and I will also use the American credit to receive the pension there.
Since I will also receive a pension in the United States, my general pension abroad will be reduced by 30. Does WEP apply to me, and if so, how will my insurance pension be affected? society? Thank you Sarah
Hi Sarah, if the only pension you receive outside of the U.S. Social Security retirement benefits is based on a summary agreement between the U.S. and a foreign country, the Special Income Elimination Clause (WEP) will not apply to you.
For foreign pensions to be excluded from WEP counting, if they are not credited to your US Social Security credit, you will not be eligible for foreign pensions. The combination of social security credits obtained in the United States and another country does not count towards uncovered pensions for WEP purposes. The best, Larry

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