Social Security: Will a Past Divorce Come Back to Haunt You With Lower Family Benefits?
If you're divorced and you've read about the Social Security program, then you likely know that your ex-spouse may be entitled to benefits stemming from your work history. But will this affect how much your current family receives? Fortunately, the answer is "no."
Under the Social Security system, a retired worker's family isn't only entitled to the worker's monthly benefits; they're also entitled to benefits of their own.
In the first case, a current spouse can receive up to 50% of the primary beneficiary's benefits depending on when he or she decides to receive them. On top of this, a retired worker's children may also qualify, assuming they're unmarried and under age 18.
The catch in all of this is that the Social Security Administration caps the amount a household can receive at between 150% and 180% of the retired worker's primary insurance amount (this is the amount you get at 66).
With this in mind, you'd be excused for concluding that an ex-spouse's benefits will be factored into this analysis. But as Motley Fool contributor John Maxfield explains in the following video, this fortunately isn't the case.
How to get even more income during retirement
Social Security plays a key role in your financial security, but it's not the only way to boost your retirement income. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today.
The article Social Security: Will a Past Divorce Come Back to Haunt You With Lower Family Benefits? originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.