Tweet
So my dad passed a couple of weeks ago. And now I have a cautionary tale of social security. My mom was always expecting to get my dad's social security when he passed because it was more. But it turns out she was wrong. She is going to keep her lower amount because it turns out it's more than if she collected from my dad. The problem?
She did everything WRONG and took INCORRECT advice from the people at social security. My parents were never financially literate and got really lucky to work a long time and outearn their spending. But what happened?
My mom took social security at 62. Not a big deal for someone born in 1951. She unfortunately took her own reduced social security because it was more than half my dad's social security. The problem? She could have delayed hers to 70 and collected half off my dad because he was already collecting. But the person at social security told her instead to take her 25% reduced social security because it was more. They were only looking at the "momentary" value of her social security. Now 10 years later my mom can't take my dad's SS because she would be taking a haircut on his social security which would turn into less than she's able to collect on hers because she has to apply the haircut.
She was fortunate to be in the category of women who could have file and suspended her social security to 70 but collect off my dad. That ended with people born in 1953. But the spouse has to be collecting as well. So she was in the doughnut hole of social security recipients. But this past 10 years she's been expecting when he died she'd have his and get rid of her lower income.
Unfortuantely she's got to keep hers now because it's more than 75% of his. He also made the mistake of collecting at 65 instead of waiting till 70 even though they were both working!
Like I said my parents were not financially literate.
So don't just take someone who works at social security opinion. Do your own research and ask and read.
She did everything WRONG and took INCORRECT advice from the people at social security. My parents were never financially literate and got really lucky to work a long time and outearn their spending. But what happened?
My mom took social security at 62. Not a big deal for someone born in 1951. She unfortunately took her own reduced social security because it was more than half my dad's social security. The problem? She could have delayed hers to 70 and collected half off my dad because he was already collecting. But the person at social security told her instead to take her 25% reduced social security because it was more. They were only looking at the "momentary" value of her social security. Now 10 years later my mom can't take my dad's SS because she would be taking a haircut on his social security which would turn into less than she's able to collect on hers because she has to apply the haircut.
She was fortunate to be in the category of women who could have file and suspended her social security to 70 but collect off my dad. That ended with people born in 1953. But the spouse has to be collecting as well. So she was in the doughnut hole of social security recipients. But this past 10 years she's been expecting when he died she'd have his and get rid of her lower income.
Unfortuantely she's got to keep hers now because it's more than 75% of his. He also made the mistake of collecting at 65 instead of waiting till 70 even though they were both working!
Like I said my parents were not financially literate.
So don't just take someone who works at social security opinion. Do your own research and ask and read.
they actually thought he made a lot less than he did. They thought they were "separated or divorced not widowed" so the benefit was spousal not survivor's benefit.
Comment