Maximizing Social Security Benefits at 67: Survivor and Your Own Earnings
As of age 67, you're already past your full retirement age for Social Security benefits. This means you can continue working and earning without impacting your benefits. However, many retirees wonder if they can switch to their spouse's full Social Security benefit instead. Let's explore the options and guidelines you should follow.
Survivor Benefits Explained
Your current Social Security benefit is half of your late spouse's. If you are receiving survivors' benefits, it's important to understand that these benefits are calculated differently. Survivors' benefits are not simply half of the deceased spouse's benefit. Instead, the percentage is determined by your age when you applied for the survivors' benefit and it's always at least 70% of your spouse's full benefit rate.
Once you receive survivors' benefits, the amount you receive will not change unless there is a Cost of Living Adjustment (COLA). Therefore, any past working or earning activities do not affect your current survivors' benefit.
Option to Switch to Your Own Full Benefits
Depending on the size of your own Social Security benefit compared to your survivors' benefit, you might be eligible to switch to your own full benefit. However, this can only be done when you decide to retire and apply for Social Security based on your own work history. There are no limitations on how much you can earn while receiving survivors' benefits as long as you are above your full retirement age.
If your current survivors' benefit is not the highest you could receive, you might want to take advantage of your full retirement age or even wait until age 70 to maximize your Social Security benefit amount. This is because the maximum benefit amount is typically reached at age 70, based on your highest earnings record.
Decision Making and Retirement Planning
The decision to switch to your own full benefit is a personal one that requires careful consideration. You have the option to apply for Social Security based on your earnings at any point from your full retirement age until age 70. If you had waited until your full retirement age before applying, you would have the option to receive 100% of your deceased spouse's Social Security check. However, since you chose to take your survivors' benefit earlier, you now only have the option to take the larger of the two benefits.
When you are ready to retire, it's crucial to notify the Social Security Administration a couple of months in advance. They can guide you on which benefits you should receive based on your earnings and those of your deceased spouse. Their formula takes into consideration your highest earnings versus your spouse's, ensuring you make the most of your benefits. Never rely on unverified information from sources outside of Social Security Administration.
Conclusion
At 67, you have the opportunity to maximize your Social Security benefits. Whether you switch from survivors' benefits to your own full Social Security based on your earnings depends on which option yields a higher benefit. It's always best to seek advice from a Social Security Administration representative to ensure you are making an informed decision. Remember, every step you take in managing your Social Security benefits can significantly impact your retirement income.