How are Social Security Benefits Calculated?
July 24, 2010
First, please note that you receive a Social Security retirement benefit estimate each year in the mail, usually around your birth date. There are also several calculators available on the Social Security website to help you estimate how much your retirement benefits will be, so you don’t need to know how to calculate the benefit yourself.
It’s still helpful to know how Social Security is calculated, however, so here are the basics:
Basically, your top 35 years of earnings are indexed for inflation, then averaged to determine the basis for your monthly benefit. If you worked less than 35 years, the missing years will be calculated as zero for purposes of determining your benefit amount.
Spousal Benefits: Applying for Social Security Benefits
March 5, 2010
Q: Can a spouse collect on her husband’s social security if she reaches retirement age before her husband?
A: No. In order for a wife to collect Social Security benefits on her husband’s earnings, the following requirements must be met:
- The wife must be at least age 62
- The husband must be eligible for benefits, so he must also be at least age 62. In addition, the husband must actually apply for Social Security retirement benefits in order for his wife to collect based on his earnings. The husband can then choose to delay collecting benefits. This strategy is referred to as “file and suspend”.
To give you an example, if the wife is 62 and the husband is 58, the wife can start collecting benefits based on her own earnings, but she can not collect based on her husband’s earnings until he turns 62 and applies for benefits.