Does Ssdi Have Anything To Do With Your Retirement Money
Q: I am 61 years old and receiving Social Security disability benefits. What happens when I reach my retirement age of 67 and two months? Does the amount I receive just stay the same and I just motility from disability to Social Security? I also have the option to draw on my ex-married man's Social Security, I believe. — Becky Terrell
A: First answer: Social Security disability benefits automatically change to retirement benefits when yous go full retirement age, and the benefit amount does not decrease, says Darren Lutz, a spokesman for the Social Security Assistants. Read "What You Demand to Know When Yous Become Social Security Disability Benefits."
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2nd respond: Depending on the amount of your own benefits at full retirement age, you may exist eligible to receive an additional benefit from your ex-husband's record, says Lutz. "You would also demand to be unmarried, and your marriage to your ex-husband would need to have lasted 10 years or longer." Read "Retirement Planner: If Yous Are Divorced."
Q: My wife has but worked for the federal government, but she's had a somewhat unique career. She started working for the federal government in 1979 as a two-year summer high school educatee. Later high school, she went on to college then became a federal employee again in 1984 and was nether the Civil Service Retirement Arrangement (CSRS).
For some reason in 2004, when she didn't self-switch to Federal Employees Retirement System (FERS), they switched her to CSRS Offset, citing a break in service from 1980-84. Since beingness switched to CSRS Get-go, they began putting nearly of her pension withholdings in the Social Security system.
I accept only worked for the private sector, and I will be able to collect my full Social Security benefits a few years earlier my wife retires. Our concerns are whether my married woman will take to be subject to the Windfall Elimination Provision (WEP) and/or the Government Pension Offset (GPO) when she retires and collects her Social Security benefits and whether she will be able to collect spousal Social Security benefits and widower benefits. — Bruce Bothuel, Romulus, Mich.
A: Offset, it's worth reiterating how complex the rules are when it comes to federal retirement pensions and Social Security, and how yous actually ought to talk to a qualified and competent professional person long before your wife and you lot apply for benefits.
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That said, Jim Blankenship, a certified financial planner and author of A Social Security Owner's Manual: Your Guide to Social Security Retirement, Dependent's, and Survivor's Benefits, offered the following thoughts on your question:
"Since your wife is classified as a CSRS Starting time employee, as long as she remains employed nether that classification during the 60 months prior to her retirement she is considered exempt from GPO touch. This means that she could be eligible for an unreduced spousal or survivor benefit based upon your tape."
Similarly, says Blankenship, given that your wife'due south earnings accept been field of study to Social Security taxation, her own benefit should not accept WEP impact when she retires too.
For more about GPO, read "Government Pension Commencement." For more than about WEP, read "Windfall Elimination Provision."
Robert Powell is editor of Retirement Weekly, contributes regularly to USA TODAY, The Wall Street Journal and MarketWatch. Got questions about money? E-mail rpowell@allthingsretirement.com .
Source: https://www.usatoday.com/story/money/columnist/powell/2016/09/10/how-retirement-affects-social-security-disability-benefit/89539880/
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