Friday, February 11, 2011

Auxilliary Social Security Benefits

While working at one of my part time jobs, a colleague mentioned to me that Social Security can be paid to minor children of Social Security recipients. This was new information to me and I decided to check with the Social Security administration, since our daughter is only six years old.

Here's what I learned. When I start collecting Social Security payments the following people can also qualify for additional payments from Social Security:

  • My spouse who earns less than $14,000 and is caring for a child under 16. She can collect 50% of my full retirement benefit.

  • My daughter until she turns 18 (19 and 2 months while in high school). She can collect 75% of my full retirement benefit.

  • Total family benefits are limited by the calculated maximum benefit amount.

  • Due to the auxiliary benefits, it is financially beneficial for me to start my Social Security payments when I'm 62, instead of waiting for full retirement age. Even though my payments will be reduced, the additional auxilliary payments will make the break even point for waiting be several years older.

    For more on Reaping the Rewards, check back every Friday for a new segment.

    This is not financial or retirement advice. Please consult a professional advisor.

    Copyright © 2011 Achievement Catalyst, LLC

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