social security benefits (divorce, divorced, spouses, marriage)

[kelly237]

I am confused.

I was a stay at home mom and then divorced so I am entitled
to 1/2 of my husbands social security benefits at retirement.

His salary was 10 times what mine was when I did work but then I had
20 years of not working while his salary increased.

When I checked monthly benefits I was told his are only twice what mine are.
This means the 1/2 amount is about the same as mine would be on my own.

How could he have a salary over 10X's mine but benefits only 2x's mine??

[knoxgarden]

Social security taxes are capped at a certain amount every year. In 2009 it's $106,800. If you make $1 million this year, you only pay Social Security taxes on the first $106,800.
In turn, Social Security payments are capped. The maximum amount you can receive each from Social Security, retiring at full retirement age, for 2009 is $2,323.
It is based on earnings, but once you hit that point, it doesn't go any higher.
Answer

[texdav]

Remeber also it was this way for a reason;SS was only meant to be a suplplement to other retirement savings etc..

[nicet4]

Originally Posted by kelly237

I am confused.

I was a stay at home mom and then divorced so I am entitled
to 1/2 of my husbands social security benefits at retirement.

His salary was 10 times what mine was when I did work but then I had
20 years of not working while his salary increased.

When I checked monthly benefits I was told his are only twice what mine are.
This means the 1/2 amount is about the same as mine would be on my own.

How could he have a salary over 10X's mine but benefits only 2x's mine??

I believe your benefits are calculated to be based on your income over the years or exactly half of what his were.... whatever is more.

That's right, you are getting half of what he gets.

[TTTenor]

The formulas used to compute the amount of Social Security benefits are weighted. The actual amounts vary depending on the year one attains age 62, but the benefit is based on 90 percent of the average indexed earnings up to the first "bend point," plus 32 percent of the average earnings from that point up the next bend point, but only 15 percent of anything higher.

This means that someone with lower earnings receives a higher benefit relative to the amount of their earnings that does someone with higher earnings.

[Tesaje]

But if your marriage lasted 10 years or more, if he dies, you get the full amount he got as an ex-wife's benefit if it is more than yours. And this is true regardless of the number of exes or if he has a current wife.

[kelly237]

Originally Posted by Tesaje

But if your marriage lasted 10 years or more, if he dies, you get the full amount he got as an ex-wife's benefit if it is more than yours. And this is true regardless of the number of exes or if he has a current wife.

TEMPTING ...LOL

seriously..I have never heard that before.

[MadManofBethesda]

Originally Posted by kelly237

TEMPTING ...LOL

seriously..I have never heard that before.

That's because it is not true, lol.

Benefits for ex-spouses are not greater than benefits for current spouses. I'm not sure where Tesaje came up with that one.

While it is true than an ex-spouse who was married for at least 10 years is entitled to spousal benefits (and it doesn't matter how many exes there are), it is still based on the normal spousal formula of 1/2 of the worker's benefit. So the ex-spouse would be entitled to an amount equal to either 1/2 of the exes benefit, or the full amount of her own based on her own work history, whichever is higher.

[lenora]

An ex-spouse who was married to the worker for greater than ten years will receive the deceased worker's FULL benefits when the ex-spouse retires. See, If You're the Worker's Surviving Divorced Spouse

I once had an elderly client who lost her subsidized housing because her ex-husband suddenly died and she was eligible to receive his full retirement benefits. Wouldn't be a big deal to many of us, but she didn't want to leave her friends, etc. She was not allowed to waive the increased benefit because taxpayers would be unnecessarily subsidizing her home. It was really sad.

[MadManofBethesda]

Originally Posted by lenora

An ex-spouse who was married to the worker for greater than ten years will receive the deceased worker's FULL benefits when the ex-spouse retires. See, If You're the Worker's Surviving Divorced Spouse

My apologies to Tesaje. I guess I was still a little sleepy earlier this morning and missed the "if he dies" part of the statement. My answer applies to ex-spouses, not surviving ex-spouses.

Next time I'll splash some cold water on my face and drink more coffee before coming to the boards.

My apologies once again.