Hi Larry, I’ve read your book and have used your software - -thanks for both! My question has to do with the family maximum benefit and the benefit for a parent caring for an adult disabled child. I have enough credits to file for SS benefits but my spouse does not, and we care for an adult severely disabled child (who now gets SSI). If I file at 62, and my spouse (who will be 59) and child also file then, based on my earning’s record, my understanding is that my daughter and spouse would each receive a benefit equal to 50% of my PIA. My SSA statement says my PIA @ FRA is $2972, and my retirement benefit at 62 would be 2069. The family max is 5121. Adding the 3 benefits, I get 5041 (which is below the family max). Does this sound correct? And would any of our benefits change when my wife or I turn 67 (FRA), assuming we are all living? Thank you!

Hi,

No. The family maximum benefit (FMB) is a benefit ceiling but there is no guarantee that the full maximum will be paid. For example, using the amounts shown above if you filed at age 62 your full PIA (primary insurance amount) of $2972 would be subtracted from your FMB before calculating the amount that could be paid to your family members. It sounds like both your wife and daughter would likely qualify on your record when you start drawing, and they'd each be eligible the lesser of a) 50% of your PIA or b) an equal share of the amount available to be paid under the FMB. So, using the amounts you mentioned your wife and child would each receive $1074, which is half of the amount available under the FMB after subtracting your PIA (i.e. $5121 - $2972).

Therefore, if you filed at age 62 you and your family could only be paid total monthly benefits of $4,217 (i.e. $2069 + $1074 + $1074) assuming that your amounts are accurate and you don't have earnings that would require withholding of your benefits (https://www.ssa.gov/planners/retire/whileworking.html). Furthermore, assuming that your daughter's SSI payments are less than her Social Security benefit rate, her SSI payments will stop when she begins receiving Social Security.

Nothing would change when you and your wife reach full retirement age (FRA). However, if you opted to wait until FRA to file instead of at age 62 you would then receive your full PIA instead of your reduced rate. It wouldn't change your wife and daughter's rates, though.

Best, Jerry