Page 45 - Investment Advisor - December 2021

tive years or longer. If so, the divorce WHEN DO SOCIAL SECURITY per month. In Tammy’s case, her top-up
must be final for two years or longer and BENEFITS STOP AFTER REMARRIAGE? is calculated as follows: $1,400 (maxi-
the receiving ex cannot be remarried. It’s correct that benefits stop if a divorced mum spousal benefit) — $1,130 (her own
Tammy checks the first three boxes. person remarries. But that’s not the whole PIA) = $270. Because she’s past her FRA,
In her case, the glitch comes with the story. Remarriage causes an ex-spouse to she would get the full top-up amount of
age rule. For either ex to collect on the lose their benefit — but only if it is based $270 added to her existing reduced ben-
other, each of them must be at least age 62. on the other ex’s work record. This rule efit. Therefore, her new benefit amount
Tammy’s ex is 10 years younger, so when applies whether it’s the ex-wife or the ex- after remarriage would be about $1,120.
she turns 70, he’ll be 60. There is no option husband who remarries. Social Security Her payment amount will be based on
for Tammy to collect on his record. Yet. is gender agnostic with these rules. her new husband’s actual PIA and cost-
The fifth rule is that the ex-spousal Connecting the dots in Tammy’s case, of-living increases over the years.
benefit must be higher than your own we need to understand that the benefit
benefit. The maximum ex-spousal pay- she currently receives ($850 per month, CAN TAMMY EVER COLLECT
ment is 50% of the other’s PIA. In ANYTHING ON HER FIRST
Tammy’s case, her ex’s PIA must It’s correct that benefits HUSBAND’S RECORD?
be higher than $2,260 (her PIA of stop if a divorced person Tammy’s last question was about
$1,130 x 2). getting more on her ex’s work
remarries. But that’s not history. She wrote, “His benefits
TAMMY’S POSSIBLE OPTION FOR the whole story. Remarriage should be quite large since he’s had
THE FUTURE good-paying jobs since he was 24
In 2024, Tammy’s ex will reach 62. causes an ex-spouse to lose years old. Can’t I collect a better
At that point, she can meet with rate off him?”
Social Security to see if there is a their benefit — but only if The only way to get a top-up on
possible ex-spousal top-up available it is based on the other ex’s an ex-spouse is to remain unmar-
to her. Let’s say his PIA is $2,600. ried. If she does not remarry, when
Tammy’s calculated benefit would work record. her ex reaches 62, she could then
be $1,300 per month. But she won’t ask Social Security for a recalcula-
receive that much. Her ex-spousal top- reduced from her $1,130 full benefit for tion of her benefits and get any appli-
up is $170 ($1,300 – $1,130). The top-up claiming early) is based on her own indi- cable ex-spousal top-up.
will be added to her reduced benefit vidual work history. No one loses their However, Tammy may eventually
($850 + $170 = $1,020) and her total is own benefit when they remarry. “step into his shoes” and collect his ben-
substantially less than it could have been. If she were collecting an ex-spousal efit if she becomes the only surviving
That additional $170 top-up will off- benefit based on her ex-husband’s work spouse. If she does not remarry, and her
set some of her Part B premiums for history (as a dependent ex-spouse), she ex dies first, and he was receiving more
many years. would forfeit that benefit upon remar- than her $850 per month, she can claim
riage. In this case, Tammy can indeed as a surviving ex-spouse. Whatever
WHAT HAPPENS IF TAMMY remarry and keep her own Social amount he was receiving will become
REMARRIES? Security benefit. her survivor benefit.
Rumors and misinformation abound If she remarries, as it sounds like she
when it comes to Social Security. One of CAN TAMMY COLLECT MORE IN prefers, and both her new husband and
the questions Tammy asked was: SOCIAL SECURITY BENEFITS AFTER her ex die before she does, she will receive
I have been told that since I started REMARRIAGE? one benefit. It will be the higher benefit
to collect Social Security at 62, I cannot Perhaps, but not on her ex-husband. between the two men. It may be that her
remarry and still receive my payment
ex was collecting $2,950 per month and
Once she’s married for 12 months to
Jim Frazier/theispot.com but we would need my Social Security. gible for any spousal top-up benefits In that case, her survivor benefit would in
her new husband, Tammy will be eli-
each month. I would like to remarry,
her second husband was getting $2,800.
on his record.
Why doesn’t the man lose his check
fact be based on her ex’s benefit.
Let’s say her new husband’s PIA is
when he remarries?
There’s quite a bit to unpack with
$2,800 per month. The maximum spou-
Marcia Mantell is founder and president of
her questions.
sal benefit is 50% of his PIA, or $1,400
Mantell Retirement Consulting.
DECEMBER 2021 INVESTMENT ADVISOR 43