I receive Social Security Disability Benefits based on my own earnings record. Prior to receiving SSDI, I retired due to a disability (Parkinson’s Disease, an SSDI “listed condition”), and used a private disability insurance policy to retire. My disability insurance policy required that I apply for SSDI after two years of receiving policy benefits. I applied for SSDI, as required by my disability policy, and was determined to be disabled by the SSA on August 1, 2015. My birth date is 7/30/1956.
I am also divorced and meet the SSA regulations for an ex-spouse to receive one-half (50%) of an ex-spouse’s retirement benefits: married for more than 10 years; not currently married; ex-spouse older than age 62; divorced for more than two years. My ex-spouse is a high-earner and should be eligible for the highest Social Security retirement benefits. My Social Security retirement benefits are not at the highest level. Using available calculators, I determined that my excess spousal benefit would be about $174 per month.
It is my understanding that the month before the month I attain my full retirement age of 66 years and four months, my disability benefits will automatically be changed to old-age benefits, unless I take some action. I have read about “withdrawing” and “suspending” of SS benefits, but am unsure if either of these options is relevant to my situation. Here are my questions:
How can I maximize my Social Security benefits as a disabled, divorced ex-spouse?
Instead of automatically collecting old-age benefits when my Social Security Disability ends, can I collect benefits based on my ex-spouse’s work record, while allowing my own benefits to grow, and then take my own benefits at age 70? Would it be in my financial interest to do so? I think this is called “Deemed Filing” and although Deemed Filing Rules changed in 2015 and impacted the rules regarding spousal benefits, some exceptions were granted to Deemed Filing for widows, widowers, and the disabled. Do I qualify for an exception to deeming due to my disability?
Hi. No. The only way that you could prevent your Social Security disability (SSDI) benefits from being automatically converted to Social Security retirement benefits when you reach full retirement age (FRA) would be to withdraw your original claim for SSDI benefits. That would mean refunding all of the SSDI benefits you've received since your original entitlement date.
Furthermore, even if you withdrew your SSDI application and you refunded all of the SSDI benefits you've received, you wouldn't be allowed to apply for divorced spousal benefits without also being deemed to be applying for your own Social Security retirement benefits at the same time. Only people who were born prior to January 2 1954 can potentially apply for spousal or divorced spousal benefits without being required to apply for their own benefits at the same time. So, in other words, there is no way that you could collect divorced spousal benefits while allowing your own benefit rate to grow.
Therefore, assuming that you're eligible for divorced spousal benefits, the only decision you need to make is when to apply. Divorced spousal benefits are reduced for age if you start drawing them prior to your FRA even if you're disabled, so you would need to wait until your FRA if you want to receive the highest possible monthly divorced spousal rate. On the other hand, though, if your ex-spouse dies before you and if you are at least FRA when you claim survivor benefits then your surviving divorced spousal rate would not be reduced for age even if you started drawing divorced spousal benefits prior to FRA.
Your best overall strategy depends on a number of different factors, so you may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze all of your options so that you can determine your best strategy for maximizing your benefits.
Best, Jerry
