Karen: I have a client who is collecting Social Security spousal benefits on her husband’s earning record. She turned 70 this week. Does she need to contact the Social Security Administration to change her benefit claim to her own record, where she will receive a larger benefit, or is does this happen automatically?
MBF: Because your client was born before the Jan. 1, 1954, deadline, she was able to file “a restricted claim for spousal benefits” and collect half of her husband’s full retirement age benefit amount while her own retirement benefit continued to earn delayed retirement credits of 8% per year up to age 70. She must contact SSA to switch from spousal benefits to her own maximum retirement benefit.
Because she is already receiving Social Security benefits on someone else’s earnings record, she cannot apply for her own Social Security benefits online. Normally, she would have to visit her local Social Security office in person, but that’s is not possible during the COVID pandemic. SSA field
offices have been closed since March 17 and there is no indication of when they will reopen. Your client can use this link to find the number of her local SSA office based on her zip code: https//secure.ssa.gov/ICON/main.jsp.
When she calls, she should be prepared to be on hold for quite a while. This advice also applies to widows and widowers who usually need to apply for survivor benefits in person.
After giving similar advice to another financial adviser, he replied to me with this helpful update:
Gordon: I found a solution for the Social Security offices being closed for in-person meetings. Once you get the toll-free number for your local office, you call and wade through all the announcements and continue to push through to reach a live agent. A live agent answers and then you make a phone appointment for matters that cannot be done online. Any documentation will have to be mailed in.
Mary Beth Franklin, a certified financial planner, is a contributing editor for InvestmentNews.
Also, Orion has added BlackRock, Fidelity, and Vanguard to its custom portfolios suite, and RedBlack has set up a new headquarters after crossing a trillion-dollar milestone.
Also, New York-based Legacy Edge Advisors names its first-ever CEO, while Novare Capital Management hires a Vanguard veteran with a multigenerational planning focus.
Asset managers are racing to bring private market products to retirement plans, but cost and liquidity concerns linger.
Treasury's latest tax-exemption crackdown on private schools lands in the wake of a separate push to restrict refundable credits for some immigrant filers.
Workforce trust measures predicted which companies came out ahead during COVID-19. The same dynamic may now be playing out across the AI transition — and the data suggests the spread could be just as wide.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
