My daughter and I receive SS benefits based on my husbands record. He is currently collecting retirement benefits. I am 53 and my daughter is 11 and we have been receiving benefits for 14 months. I know we each receive a reduce amount because we exceeded the family maximum, but it was still considerably more than her benefit alone would have been, even taking in to consideration my SS is taxed and hers is not. When my benefits end as she turns 16, will her benefit increase at that time? I am thinking it might be recalculated automatically to allow for the maximum for one beneficiary.
Yes, if you and your daughter's benefit rates are being reduced due to the family maximum, her rate will increase when you drop off the record when she reaches age 16. Her rate before reduction for the family maximum would be 50% of your husband's full retirement age benefit rate (PIA), so that should become her new rate when you are no longer eligible.