Social Security Decisions Are Permanent - Make Sure They’re Right.

A generation or two ago, receiving a guaranteed employer pension and social security benefits was not uncommon. Some individuals receive guaranteed pensions from unions and the government. However, according to the Bureau of Labor Statistics, only 15% of private industry workers had access to guaranteed pension benefits.

 Since the entire investment risk was transferred to most of the private sector, effectively managing investments is essential. The income received in retirement will be largely dependent on the financial decisions you make. One of those decisions will involve your Social Security benefits. Below is a list of common areas, including questions that may help you identify your issues and concerns. Even if you are receiving benefits currently, future situations will impact others – i.e., spouses, divorced spouses, survivor benefits, and dependent benefits.

What type of Social Security Benefits are Available?

Retirement Benefits
Disability Benefits
Spousal Benefits
Survivor Benefits
Ex-Spousal and Survivor Benefits
Dependent Benefits

Can I receive more than one benefit at the same time?
A person can be eligible for more than one type of benefit, but they will not receive separate payments. For example, a spouse's payment can consist of the spouse’s retirement plus an additional spousal benefit, but it will be combined into one payment.

Can I receive both benefits if I receive a CalPERS pension and have also worked in the private sector to qualify for Social Security benefits?

Prior to January 5, 2025, these members were subject to a federal law known as the Windfall Elimination Provision (WEP) that could reduce their Social Security benefits. The law limited benefits for anyone in a “non-covered” position unless they had 30 or more years of “substantial earnings” from a different job where Social Security taxes had been collected.

(No matter your work history, Social Security has no impact on your CalPERS pension).

The Social Security Fairness Act repealed the WEP, which President Biden signed into law on January 5, 2025. The new law is retroactive to benefits paid in 2024, but it is currently unclear how long the Social Security Administration will take to fully implement its provisions.

Early Filing

What is the minimum age to begin receiving Social Security Benefits?
It depends on the type of benefit. For example, at age 62, a person qualifies to receive individual or spousal benefits. Survivor Benefits can be obtained at age 60 for surviving spouses or former spouses, and Disability benefits at age 55. Please remember that an early filing penalty will apply if benefits are received before Full Retirement Age (except for Disability).

If I return to work, will my Social Security Payments be reduced?
Maybe. It depends on your age and how much you earn in the year you receive benefits. For someone with a Full Retirement Age of 67, the income limit from 62 to 66 is $. During the year you turn 67, you can earn $. After that, there is no limit to how much you can make before benefits are reduced. It is important to note that the amount subtracted from your benefits due to excess earnings will be eventually paid back to you through payments beginning at your Full Retirement Age of 67. See …….

How much more Social Security benefit can I receive if I wait past my Full Retirement Age until age 70?
Once you reach your FRA (age 67 for everyone born after 1959), you can increase your benefit by 8% annually (.067% per month) until age 70. For instance, a monthly benefit of $2,500 at FRA (age 67) will increase by $200 ($2,500 x .08) each year up to age 70 ($3,100 monthly benefit). Note that the interest is calculated using a simplified method (not compounded).

Spousal Benefits

If my spouse files for benefits, will my benefits be reduced?
No. Spousal or ex-spousal benefits will not impact the other spouse or ex-spouse’s retirement benefits. Divorced spouses do not need to know that each other may have filed for spousal benefits on each other.

How long must I be married to my ex-spouse to be eligible for spousal benefits?
You must have been married to your ex-spouse for at least 10 years to be eligible for spousal benefits. You also must not have been married, and you must be at least 62 years old.

Can I be remarried and still receive spousal benefits from my ex-spouse?
No. You may be eligible for spousal benefits on your new husband’s record but not on your former spouse's record.

Can I receive spousal benefits and switch to my retirement benefit later?
No. You will receive the highest benefit available to you when you file.

Can my spouse file for spousal benefits even though I have not begun receiving benefits yet?
No. You must be receiving benefits to have your spouse eligible to receive benefits. However, a divorced spouse who is otherwise eligible need not have to wait for their ex-spouse to begin receiving benefits.

Survivor Benefits

If my spouse dies, how old must I be to begin receiving Survivor Benefits?
A surviving spouse can file for survivor benefits as early as age 60, but will be subject to the reductions from the same situations as retirement benefits - early filing before your Full Retirement Age (FRA) and benefit reduction due to excess earned income before reaching FRA.

How much Survivor Benefits will I be eligible for if my spouse dies?
Survivor benefits are based on the amount the deceased spouse was receiving or entitled to receive at the time of their death – the surviving spouse “steps into the shoes” of the deceased. However, the earnings and excess income penalties will apply to surviving spouses who have not reached their Full Retirement Age.

Can I begin receiving survivor benefits from my spouse and then switch to my retirement benefit amount?
Yes. Because survivor benefits differ from retirement benefits, a surviving spouse can file for survivor benefits as early as possible (age 60) to receive income (although discounted for early filing) and allow their retirement benefit to increase up to age 70 and then take the higher payment.  

I am divorced. I was married for eight years. Am I eligible for survivor benefits on my ex-spouse if they predecease me?
No.

Dependent Benefits

When are dependent children eligible to receive Social Security Benefits?
When a parent receives Social Security retirement or disability benefits or dies, their child may also receive benefits. Under certain circumstances, a stepchild, adopted child, dependent grandchild, or step-grandchild may also qualify. To receive benefits, the child must be unmarried and younger than 18.

Can A spouse (under 62) who cares for minor children receive retirement benefits from the retired spouse’s account?
Yes, as long as the younger spouse cares for a qualifying child. A qualifying child means a child under age 16 or who receives Social Security disability benefits.

Receiving excellent financial advice should be more than assuming a fiduciary role for managing investments (although most planners are not qualified fiduciaries to begin with). Having a dependable and trustworthy source of financial information and expertise is essential, and maximizing social security benefits is becoming increasingly important for the retirees representing an entire generation. Please call us at (925) 484-1671 or email us to ask questions or schedule a no-charge consultation.

Thank you.