Spring 2017 Issue of Horizons

My former spouse passed away. Am I entitled to a survivor’s benefit? Yes, if your former spouse passes away and you were married for at least 10 straight years, you are entitled to a survivor’s benefit as early as age 60, at a reduced benefit (if you wait until your full retirement age to collect the survivor benefit, there is no reduction). If you remarry before 60, you are not entitled to a survivor’s benefit on your former spouse unless your current marriage ends in divorce, death or annulment. If you reach full retirement age and are eligible for a survivor’s benefit, you have the option of collecting a survivor’s benefit and allowing your own retirement benefit to accrue. If your own retirement benefit exceeds your survivor’s benefit, you can switch to your own benefit. I have heard about strategies such as ‘File and Suspend’ and ‘File and Restrict’ to maximize benefits. Are these strategies still available? The Bipartisan Budget Act of 2015 eliminated the ability for couples to employ the file and suspend strategy effective April 30, 2016. If you were born on or before January 1, 1954, you still may have the option to employ the file and restrict strategy. When should I start taking my social security benefit? The decision of when to start taking benefits can have a dramatic impact on your ability to meet your needs in retirement. This decision should be made as part of a comprehensive financial plan. RubinBrown Wealth Advisors are happy to assist you with this process.