2002 Volunteer Leader Training Guide
What a Spouse Needs to Know About Family Finances
What Women Should Know About Social Security
Handout 5
Because many women’s work patterns are different from men, there are some
rules that women need to be aware of in order to protect their rights under
Social Security as workers, widows, mothers, and spouses.
Social Security provides benefits to the spouse and children of a retired,
disabled, or deceased worker. The annual earnings test in the law for workers
under 65 years limits the amount of earnings a person can have and still receive
Social Security benefits.
Recent studies show that 60 percent of married women who retire are insured
for benefits as workers in their own right.
As a worker, a woman may be eligible for retirement benefits at 62. If
she stops work before she earns enough Social Security credits, no benefits will
be payable on her own Social Security record. However, the credits she earns
stay on her record. She can always go back to work and accumulate the necessary
credits for benefits.
The amount of credit she needs for disability benefits ranges from at least 5
out of the last 10 years at age 31 and older, down to as little as 1 1/2 years
during the last 3 years if disabled before age 24. She will need credit for at
least 10 years of work for retirement benefits.
A wife can receive a retirement benefit at any age if she is caring
for the worker’s child who is under 18 or a full-time high school student under
19, or disabled and entitled to benefits. Otherwise, she may receive benefits at
62 when her husband retires or becomes disabled. A wife’s benefit amounts to 50
percent of the worker’s benefit if she gets benefits at 65, less if she gets
benefits earlier.
A widow can get a widow’s benefit at any age if she is caring for the
worker’s child who is under 18 or a full-time student, or disabled and entitled
to benefits. Otherwise, she can receive a widow’s benefit at age 60. Widow’s
benefits range from 41 1/2 percent of the deceased husband’s benefit amount if
they begin at age 60, to 100 percent if they begin at 65. If she becomes
disabled, she can get widow’s benefits as early as 50 (71 1/2 percent of the
deceased worker’s benefit).
Ordinarily, a widow loses her Social Security rights when she remarries. But,
benefits may continue without reduction for a widow who remarries after 60, or a
disabled widow who remarries after 50.
A divorcee is entitled to the same benefits she would be entitled to
as a wife or widow if the marriage lasted 10 years or more immediately prior to
her divorce from the worker. This is true even if the worker has remarried.
However, she may lose those rights if she remarries.
A divorcee can receive benefits when her ex-husband starts collecting
retirement or disability payments if she is (1) remarried, (2) 62 or older, (3)
not entitled to a retirement or disability benefit based on her own earnings
which equals or exceeds one-half of the worker’s full amount, and (4) was
married to her ex-husband at least 10 years – even if her ex-husband is not
actually receiving payments at age 62 provided her ex-husband is eligible for
benefits and she has been divorced from the worker for at least 2 years.
A woman should also be familiar with the government pension offset if she
gets a pension based on work in public employment not covered by Social Security
and expects to get a Social Security benefit as the wife or widow of a worker
covered by Social Security. The Social Security benefit payable may be reduced.
There are a number of exceptions to this rule.
You can obtain an estimate of your benefits and earnings by submitting Form
SSA-7004. Contact your Social Security office by phone to ask them to send you a
form, or use the web site,
www.ssa.gov, or
telephone, 1-800-772-1213.
All of the above rules are the same for men as workers, spouses, widowers,
and divorced husbands. You can get estimates about your specific situation by
calling the toll-free number to make an appointment with a service
representative.
Source: Social Security Administration
2002. Originally prepared by Dr. B.J. Sundling, Retired Extension Family
Economics Specialist. Revised by Dr. Judith R. Urich, CFP, Family Resource
Management Specialist.
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