How Divorce Affects Your Social Security Benefits

Because Social Security is the No. 1 income source for retirees in our country, a divorcing person should consider how his or her benefits will be affected. 10-17-16-divorce-socialsecuritybenefits-andersenlawpc

Before diving into the effects of divorce on these benefits, it makes sense to do a quick review on the basics of the benefits themselves.

YOUR WORK BENEFITS: Your benefits will depend on how much you earned over your working career and the age at which you apply for benefits. At age 62, each year’s earnings are tallied and indexed for inflation. The highest 35 years of earnings are totaled and indexed for inflation then averaged to compute your “AIME.” This amount is divided by bend points to determine your PIA (primary insurance amount) which you will receive and adjust with a cost of living adjustment over time. If you apply early, you will receive a percentage of your PIA depending on the month of retirement. To calculate your benefits, you can go here and click on “estimate your retirement benefits” or click here. Continue reading “How Divorce Affects Your Social Security Benefits”