• Chris Stein, CFP®

Question on Switching from Survivor Benefits

The advantages to claiming survivor benefits versus your own benefits can be confusing. We recently received the following question from a reader on just this topic.

“I am turning 66 and have been receiving survivor’s benefits from my late wife since age 60. Do I need to register for my own benefits and then suspend them until I’m 70, when I believe I must change over to my own benefits? Or can I just wait until age 70 to apply for my own benefits and still see the 7% yearly increase? Thanks.”

This question is best answered in a couple of parts.

Not Required

First off, you are never required to change from survivor benefits to your own benefits. You may want to switch over if your own benefit is higher, but you won’t be forced to switch.

Paperwork Mess

The reader asked if he should file and suspend his benefits until he’s age 70. Claiming and suspending his benefit will actually shut off his survivor’s benefit and create a huge paperwork mess. He’s better off just waiting to file his claim for his own benefit until he’s ready to actually collect.

Yearly Increase

If the reader leaves his own benefit unclaimed until age 70, the benefit will continue to grow. However, the benefit will grow at a rate of 8% (or 3/4 of 1% per month) annually, not the 7% the reader asked about.

For more information on this topic, please use the play button below.

http://s3.amazonaws.com/HelpWithMySocialSecurity.com/HWMSS-01-03-18.mp3

Podcast: Play in new window | Download

Subscribe: Android | RSS

Jim's best friend Mosby

Mnt%20Mo_edited.png
cfplogo.png
EliteLogo2011.jpg
FPA_ProudMember.jpg
SIGN UP FOR OUR NEWSLETTER!
  • Facebook
  • Twitter

Check out the background of firms and investment professionals on FINRA’s BrokerCheck.

Jim Saulnier and Associates | 970-530-0556 | 506 East Mulberry Street, Fort Collins, Colorado 80524
© 2020 Jim Saulnier, LLC. All rights reserved.

Ed Slott Advisor recognition requires an advisor to be well versed on the rules and regulations regarding IRAs.
The advisor must attend two live training sessions and pass two written exams annually to remain in the program.

Jim Saulnier, Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC to residents of: CO, IA, IN, MA, NY, TN, TX, WI and WY. No offers may be made to or accepted from any resident outside the specific states mentioned. Jim Saulnier, Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Financial Planning services offered through Jim Saulnier and Associates, LLC., a Registered Investment Advisor. Cambridge and Jim Saulnier & Associates, LLC are not affiliated.