Social Security Options For Divorced Women

Older single women have been on policymakers’ radar for some time. The concern is that women who are divorced are at greater risk of living in poverty than widows and other older Americans. The truth is, about 20 percent of women over the age of 65 who are divorced find themselves living in poverty, which is several percentage points higher than for other single and/or widowed women in the same age range.  Social Security (SS), however, offers a lifeline for some divorcees.

SS Auxiliary Benefits

 For divorced women who were previously married to the same individual for at least 10 years, auxiliary benefits are available through Social Security (SS). In general, women in this group are permitted a benefit based on their own earnings, a benefit assessed at one-half of their former spouse’s earnings benefit, or a combination of the two.  Nothing a woman collects through auxiliary benefits impacts their former husbands’ entitlement.

Eligibility 

The Social Security Administration (SSA) determines the highest auxiliary benefit based on any previous marriages meeting the 10-year requirements. They then compare this benefit to the woman’s own SS benefit.

1. If a woman is ineligible for any benefits based on her own work history, she is entitled to receive the entire divorced-spouse benefit (which is 50 percent of her former spouse’s total benefit) or surviving divorced-spouse benefit (which is 100 percent of her former spouse’s total benefit).
2. In the event a woman has her own SS retirement benefit, but it 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 eligibility equal to the total auxiliary benefit.
3. If a woman’s own SS earnings benefit exceeds that of the auxiliary benefit, she is eligible for only her own retirement benefit.

 Worth Knowing 

Because women’s lifetime earnings have improved in recent years, the expectations for divorced women after retirement are improving.  Even so, it is anticipated that a large segment of this group of women would not be in good financial shape if they had to rely on only their own record of earnings.  Women who are entitled to auxiliary benefits based on a former spouse’s earnings have a brighter outlook than do women with no access to this lifeline. The breakdown projections of who will qualify for what looks like this:

1. Just under half of divorced women will fall not have earned enough over a lifetime to claim their own Social Security benefits or;
2. Earn less from their own SS benefits than the auxiliary benefits from a former spouse would provide.
3. One-third of divorced women will not have been married long enough to collect on their former spouse’s earnings and are likely to experience higher rates of poverty due to low post-retirement incomes.
4. A quarter of divorced women will have high enough lifetime earnings on their own that they will not be entitled to any auxiliary benefit.

Remarriage Impacts Benefits 

One critical caveat worth knowing is that women who decide to remarry while their former spouse is still living will most likely lose their divorced-spouse benefits.

The Legal Advocates You Need

The experienced Boca Raton divorce lawyers at WiseLieberman 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 Boca Raton office today.

Source:

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