Senior Women May Qualify For A Social Security Boost

For senior women who divorce, there is some concern that the risk of living in poverty is much higher than it is for widows and other older Americans. In fact, roughly one in five women over the age of 65 who are divorce will find themselves living in poverty.  That’s significantly higher than for women who are single and/or widowed in this age group.  A lifeline for some divorcees is available through Social Security (SS), however.

Understanding Auxiliary Benefits 

Divorced women, after having been married previously to the same individual for a minimum of 10 years may be able to access auxiliary benefits available through Social Security. Generally speaking, women in this group are allowed a benefit based on either:

• Their own earnings over their lifetime of work;
• A benefit calculated as 50 percent of their former spouse’s earnings benefit, OR;
• A combination of the two.

To be clear, anything a woman receives through auxiliary benefits will have no impact on their former husbands’ entitlement.

Understanding The Calculation 

If a woman has had more than one previous marriage that lasted 10+ years, the Social Security Administration will determine the highest auxiliary benefit in order to calculate a woman’s eligibility for funding. This amount will be compared to the woman’s own earned SS benefit.

• In the event a woman is ineligible for any benefits because she has no paid own work history, she is authorized to receive the entire divorced-spouse benefit (which is half of her former spouse’s total benefit) or surviving divorced-spouse benefit (which is 100 percent of her former spouse’s total benefit).
• When a woman has earned a SS retirement benefit that is less than the amount available through the auxiliary benefit, she can collect the difference between the auxiliary benefit and her own benefit, bringing the total amount up to the value of the total auxiliary benefit.
• If a woman’s own SS earnings benefit surpasses that of the auxiliary benefit, she is entitled to her own retirement benefit only. 

Who Qualifies? 

Although women’s lifetime earnings have improved somewhat in recent years and the financial outlook for divorced women after retirement is improving, in many situations women’s earned SS benefit will not be close to their former husbands’, even at just a 50 percent benefit.  Indeed, it is expected that a sizable segment of this group of women would be in precarious financial form if they had to rely on just their own record of earnings.  Women who are authorized to collect auxiliary benefits based on a former spouse’s earnings have a sunnier financial future than their counterparts who have no access to this lifeline. The rundown projections of how many women will qualify for various benefits looks like this:

• About 25 percent of divorced women in this age range will have had a high enough lifetime earnings of their own to eliminate the need (and eligibility) for an auxiliary benefit based on a former spouse’s earnings.
• Just under 50 percent of divorced women who are 65+ will not have earned enough over a lifetime to claim their own Social Security benefits, or;
• They would have earned less from their own qualifying SS benefits than they would receive by collecting the auxiliary benefits that a former spouse’s benefit would provide;
• Just under 30 percent of these women will not have been married long enough to collect on their former spouse’s earnings, meaning they are likely to suffer greater rates of poverty as a result of their low post-retirement incomes.

Does the Auxiliary Benefit Continue if a Woman Remarries? 

One principal caveat that must be noted is that women who choose to remarry while their former spouse is still living will lose their divorced-spouse benefits in most cases.

The Legal Advocates You Need 

The experienced Baltimore family attorneys at The Law Office of Hasson D. Barnes know how confusing divorce and all the implications of it can be.  But we are committed to ensuring that you understand your options, and we always work toward the best possible outcomes for you.  To discuss, schedule a confidential consultation in our Baltimore office today.

Sources:

aarp.org/retirement/social-security/questions-answers/widowed-and-divorced-survivor-or-ex-spouse-benefit/?cmp=KNC-DSO-SAPLA-SavingsPlanning-SocialSecurityQuestions-NonBrand-Exact-44412-GOOG-SOCSEC-SurvivororExSpouseBenefits-Exact-NonBrand&gad_source=1&gbraid=0AAAAAD5VhzX4T3Yj_3fGW4B5ZQuu0_CgM&gclid=CjwKCAjwnei0BhB-EiwAA2xuBmyvGxTIngG_XFXpGe8XTVat3n2wnhibrnaDpkwcSvgkSKtUaahsyxoC-vwQAvD_BwE&gclsrc=aw.ds

ssa.gov/policy/docs/ssb/v72n1/v72n1p11.html