Jean Chatzky has blunt warning on Social Security, Medicare todayheadline

Most Americans know they will begin collecting Social Security benefits and enrolling in Medicare when they retire. But many wonder about certain specifics regarding eligibility, depending on their different life situations. 

Jean Chatzky, the former NBC Today Show financial editor and AARP (American Association of Retired Persons) ambassador, has some words of advice on Social Security and Medicare, and a warning about some of the details involved.

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Some of the more intricate specifics about Social Security benefits are often encountered as formerly married people wonder about how their eligibility works — and this applies to both people who are divorced and those whose spouses have died.

For example, Chatzky acknowledges that she gets asked frequently about Social Security benefits and what happens when one’s spouse passes away suddenly.

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Chatzky lays out a few scenarios and explains the eligibility requirements for Social Security in each instance.

Jean Chatzky warns Americans about Social Security if a spouse dies

Social Security survivor benefits require some effort to fully understand.

“It all can be overwhelming,” Chatzky warned, before getting into the details about whether one can receive survivor benefits if their spouse dies before collecting Social Security monthly paychecks.

“The good news is you could be eligible for 71.5% to 100% of your spouse’s benefit,” Chatzky explained.  “Even if you’re divorced, you may be eligible to collect a spousal benefit as long as you were married for at least 10 years.”

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Chatzky clarifies that for divorced people, there more rules that apply depending on whether the ex-spouse is living and whether one has remarried.

• If your ex is still living, you can collect divorce spouse benefits if you’re 62 or older and have not remarried. That is true even if your ex has not yet started collecting Social Security. 
• If your ex has died, you can claim survivor benefits if you’re 60 or older or 50 if you’re disabled. 
• If you remarry before you turn 60, or again 50 if you’re disabled, you can’t claim your ex’s benefits. 

“Social Security can be complicated,” Chatzky said.

Another layer of complexity to qualifying for Social Security involves situations where one is stay-at-home spouse.

“Let me tell you how it works,” Chatzky said. “You’ll need to be 62 or older and your spouse must be collecting benefits already. You and your spouse generally must be married for at least a year.” 

“And when it comes to your benefit, you’ll get about a third to a half of your spouse’s full monthly benefit,” she added. “It is important to know that you can’t collect both your own benefit and the spousal benefit. Social Security will pay the amount that’s higher.”

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Jean Chatzky explains Medicare factors to consider

Chatzky turned her attention to Medicare enrollment scenarios — first, whether income received from a part-time job might affect Medicare premiums.

“The bottom line is ‘maybe,'” she said. “If you’re on Medicare and decide to work part-time, the money you earn could trigger an increase in your premium.” 

“It all depends on your overall income from work and investments and other sources. Let me tell you how it works,” she continued. “The Social Security Administration uses your tax information from the year before last to determine whether you have to pay higher premiums. The income threshold changes each year. But bottom line: If you earn more, you’ll pay more.”

Chatzky takes on the question of whether it’s a good idea to collect Social Security benefits early because of medical issues.

“The general rule of thumb is that people should wait to claim Social Security until at least their full retirement age because their benefit will be larger,” she said. “But when it comes to medical issues, everyone’s situation is different. 

“If you have a serious medical condition or a family history of chronic illness and don’t expect to live long after retirement, it might be beneficial to take your Social Security early and collect what you can,” she added. “You can start collecting retirement benefits at age 62, but you’ll be locked into a lower payment for the rest of your life.”

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