There are several new challengestodayâ€™s retiring generation is facing, with the volatility of Congress and theuptick of healthcare costs. You can also add â€œdivorceâ€ to those challenges, andthose retirees are experiencing some surprises in regards to their SocialSecurity benefits.
If you have been divorced, it iscritical that you understand how Social Security benefits take divorce intoaccount. Demographically speaking, this is even more essential for retiring women.
The role of Social Securitybenefits in the retired life of a divorcee can be crucial, as discussed in arecent Reuters article titled â€œColumn: Knowing Social Security rules canhelp divorced spouses.â€
Basically, Social Securitypayments are related to your paid work during your working years. As a result,many ex-spouses simply have not built up sufficient â€œnumbersâ€ because of howhousehold incomes were split back in the day. Interestingly, you may beeligible for many of the same benefits as if you had remained married to yourex.
But it is not automatic. Hereare some threshold requirements:
- You must be currently single,
- You must have been married to your ex for atleast 10 years,
- Your divorce must be â€œfinalâ€ for at least twoyears,
- You must have reached the minimum SocialSecurity eligibility age (62), and
- You must not be currently collecting a benefitamount greater than that of your ex.
Note: Your eligibility is completely independent of the benefits collectedby your ex, but you will lose the benefits if you remarry. I recommend readingthe original article for additional tips and traps.
Call or visit your local Social Security officeregarding the folder of paperwork you will need to gather for qualification.
At Idaho Estate Planning,we can help you find the resources you need to put your estate plan together.We have the experience and expertise to help you maintain your options andprotect yourself as well as your loved ones now and into the future. Remember, goodplanning is no accident.