58 KIPLINGER’S PERSONAL FINANCE^ 03/2020her own benefit. Because the higher
earner has reached full retirement
age, he or she gets half of the lower
earner’s primary insurance amount.
During this time, the higher earner
builds delayed-retirement credits
on his or her own benefit, and at age
70, the higher earner switches to the
boosted benefit. The lower earner
switches to a spousal benefit if it’s
higher than his or her own.What should divorcees know?
If you are divorced and were married
to your ex-spouse for at least 10 years,
you can claim spousal benefits based
on your ex’s record as long as you’re
single now and the benefit to which
you’re entitled based on your own
work history is less than the spousal
benefit. Even if your former spouse
hasn’t applied for or suspended his or
her own benefits, you can claim spou-
sal benefits if your ex is 62 or older and
you’ve been divorced for at least two
years. Be aware that if you remarry,
you’ll lose the spousal benefit—but
you can reapply for it if you and your
spouse divorce or he or she dies.
If you’re eligible for the spousal ben-
efit for divorcees and aren’t close to
retirement, don’t assume that it’s your
best bet. You may be able to boost your
own benefit higher than the spousal one
because Social Security bases your own
benefit on the 35 years that you earned
the most. Jeannette Bajalia, president
and founder of financial-planning firm
Woman’s Worth, encourages clients to
generate more income if their benefits
are on the cusp. “I’ve shown clients
that if they made, say, $18,000 a year,
that would throw out some zeros on
their earnings record” and tip their
benefit over the edge, says Bajalia.What about widows and widowers?
At age 60 (or as early as 50 for those
who are disabled), widows and widow-
ers may begin claiming survivor bene-
fits based on their deceased spouse’s
record. But, says Bajalia, “just becauseyou’re eligible at 60 doesn’t mean it’s
the right thing to do at 60.” If you wait
to take the survivor benefit at your
full retirement age, you’ll get the same
amount that your spouse was receiving
or was eligible to receive; claiming
earlier reduces the benefit.
The size of your survivor benefit
also depends on when your spouse
died and whether he or she started
claiming benefits during his or her
lifetime. If your spouse had started
claiming benefits, your maximum sur-
vivor benefit is the amount he or she
was collecting. If your spouse died
before full retirement age and had
not yet claimed benefits, the survivor
benefit is based on the amount your
spouse would have obtained at full re-
tirement age. And if your spouse died
after his or her full retirement age and
had not begun benefits, you’re eligible
for the amount your spouse would
have received at the age of death, in-
cluding delayed-retirement credits.
An additional perk for widows andwidowers: You can claim survivor
benefits while letting your own bene-
fit grow, then switch to receiving your
own benefit later—a smart move if
your benefit will exceed the survivor
benefit. Or you may choose to start
your own benefits at 62, then switch
to survivor benefits at your full retire-
ment age. Pursuing the optimal strat-
egy can mean “hundreds of thousands
of dollars of difference,” says Meyer.What happens if I sign up for Social
Security before full retirement age
and then go back to work?
If you work and collect Social Security
before you reach full retirement age,
the “earnings test” may decrease your
benefit payout, depending on how
much you earn. If you won’t reach full
retirement age in 2020, you can earn
up to $18,240 without affecting bene-
fits (the earnings limit adjusts each
year based on the national average
wage index). For amounts above thatRETIREMENT