btw if your annuity is from a job where u didn't pay SS taxes like some gov jobs (my sister works for county) then WEP might reduce ur SS... happened to my brother in law who was a teacher in Texas... his SS was cut by almost half! check if WEP applies to u

Thanks everyone for all the helpful responses! Just to summarize what I've learned: 1. My private sector annuity won't reduce my actual SS benefit amount 2. However, it will count as income for tax purposes and might make my SS benefits taxable 3. I should consider tax withholding from my SS checks to avoid surprises 4. Since I'll be claiming at my FRA, the earnings test won't apply 5. I definitely need to consult with a tax professional before I retire This forum has been so helpful - much clearer information than I got from my financial advisor!

btw if ur doing online applications and get stuck the website is TERRIBLE lol. i tried 3 differnt browsers before it worked. use Chrome not Safari thats what finally worked for me

I want to thank everyone for the incredibly helpful advice. I've gathered all our documents (birth certificates, marriage certificate, my wife's medical records) and plan to start my application online tomorrow using Chrome as suggested. I'll clearly note my wife's terminal condition in the remarks section and hope it gets flagged for the TERI program. After I get my application submitted, I'll help my wife apply for her benefits and clearly indicate she's applying for both her retirement and spousal benefits. Based on the calculations shared, she should receive around $1,350 total between the two, which will really help with our expenses. I'm also going to check out that Claimyr service since it sounds like I'll need to speak with SSA at some point about the spousal benefits. Being able to avoid long wait times would be a huge relief given my caregiving responsibilities. You've all been so supportive and informative - it's made a stressful situation much more manageable. I'll update on how things go after we submit our applications.

I want to address the math issue you mentioned. You said the $6,000 overpayment doesn't make sense for someone receiving $1,000/month over 6 months. This actually provides a clue. If your sister was receiving approximately $1,000/month in combined benefits (her own plus divorced spouse benefits), and SSA is now claiming an overpayment of around $6,000 for 6 months, that suggests they're treating about $1,000/month of her payment as incorrect. This likely means the system is erroneously treating ALL of her ex-spouse-related benefits as improper, rather than just calculating the difference between divorced spouse benefits (which were correct) and survivor benefits (which wouldn't apply until after his death). This pattern is consistent with a known systems issue where the beneficiary code was improperly changed retroactively. When she appeals, she should specifically request they review the "beneficiary identification code" (BIC) used for her benefits before and after the death.

This exact thing happened to my neighbor and she was about to start making payments until her daughter stepped in! She had to make THREE trips to the SSA office before finding someone who actually understood the rules for divorced survivor benefits. She kept getting shuffled between different people who all told her something different. The person who finally helped her was a Technical Expert who specialized in survivor cases. Your sister should specifically ask for someone with that expertise. And definitely bring multiple copies of EVERYTHING because they somehow kept "losing" my neighbor's paperwork between visits. The whole system is a mess right now with staffing shortages.

Just to clarify some misinformation in this thread: COLA adjustments are applied to your regular monthly benefit amount, not as separate payments. And they're announced in October and take effect in January each year. Since we're not in that timeframe, this is almost certainly an underpayment correction. The fact that it's exactly $150 suggests it might be related to a specific program adjustment rather than a calculation based on your individual record. You should definitely keep calling SSA for an explanation, and check your mail carefully for notices in the coming days.

UPDATE: I finally got through to someone at SSA! The $150 was indeed a one-time adjustment related to my earnings record from 2023. Apparently when they processed my tax return information, they found I was eligible for a slightly higher benefit for part of the year. My husband didn't get one because his benefit amount wasn't affected by the earnings update. Mystery solved! And yes, my regular payment came through on schedule too. Thanks everyone for your help!

You might want to run some numbers on what happens if you both wait until FRA or even 70. My financial advisor showed me that my wife and I would get almost $100,000 more in lifetime benefits if I waited until 70 and she claimed at her FRA. The survivor benefit aspect is really important to consider too - whoever lives longer will inherit the higher benefit amount.

This is a complex topic, but I think I can help clarify this for you. When your wife claims her own benefits at 62, they will be permanently reduced by approximately 30% from her PIA ($1,250). When you later claim at 65, she becomes eligible for spousal benefits. At that point, SSA will calculate: 1. Her PIA ($1,250) 2. 50% of your PIA ($2,900 ÷ 2 = $1,450) 3. The difference between them ($1,450 - $1,250 = $200) However, because she claimed at 62, this $200 difference will be reduced based on the spousal benefit reduction factor for claiming 60 months early (approximately 35% reduction). So her spousal add-on would be roughly $130 after reduction. Her total benefit would be her reduced own benefit (approximately $875) plus the reduced spousal add-on (approximately $130), totaling about $1,005. This is significantly less than the $1,450 she would receive if she had waited until her FRA to claim any benefits. The early claiming penalty affects both portions of her benefit.

Do u have any other income besides the dog sitting and survivors benefits? My mom does something similar and she also substitue teaches sometimes and SSA counts ALL of it together for the earnings limit thing

After talking with SSA (took FOREVER to reach someone), I found out something that might help you. Once you've reported your self-employment to them, they'll send you a form called "Report of Work Activity" where you have to estimate your hours and earnings. After you file taxes, they'll adjust based on your actual net earnings. The key is REPORTING PROACTIVELY! Don't wait for them to discover your work activity later - that's how people end up with huge overpayment notices!!

When I was researching my options, I found that the BEST strategy depends a lot on life expectancy and immediate cash needs. If you think you'll live well into your 80s and don't desperately need the money now, waiting until 70 to file for your own benefits will maximize your lifetime payout (plus it provides inflation protection). But if you need income now OR have health concerns that might affect longevity, taking reduced benefits earlier could make more sense. Also remember that once either of you passes away, the surviving spouse will receive the higher of the two benefit amounts you were receiving. So maximizing at least one benefit (usually the higher earner's) can be a good survivor planning strategy.

Thank you all so much for the helpful responses! Based on everything here, I think my best option is to: 1. Get the exact benefit amounts for both of us 2. Use that Claimyr service to actually speak with someone at SSA about our specific situation 3. Probably delay taking any benefits until at least my FRA (67) if not 70, since my benefit would be significantly higher than any spousal benefit I'm disappointed that I can't use the strategy I was hoping for, but I'm glad I asked before making a mistake! This forum has been so much more helpful than the confusing SSA website.

My mom applied at FRA last year and her application got stuck in processing for almost 3 months! When she finally got through to someone, they said there was a flag on her account because she had worked overseas for a few years in the 90s. The system got confused even though she'd been back working in the US for 25+ years after that. So if you've ever worked outside the US, you might want to proactively call them.

One additional point: since you're applying right at your FRA (66 and 8 months), double-check that the SSA correctly notes your FRA date in your application status. Sometimes their automated system can miscalculate by a month if you're right at the cutoff. Your benefit amount should be 100% of your Primary Insurance Amount (PIA) since you're claiming exactly at FRA - not reduced for early claiming or increased for delayed credits. Also, in May when you get your first payment, take a moment to verify that the amount matches what was shown on your Social Security statement. If there's a discrepancy, contact them right away. It's much easier to fix payment issues in the first few months than trying to correct them years later.

She asked her accountant for a recommendation. Be careful though - make sure they're a fiduciary (legally obligated to act in your best interest) and not just someone selling retirement products!

One more thing to consider - if you're still working, you might want to delay claiming until you fully retire or reach your FRA. Benefits claimed at 62 are reduced by about 30% permanently compared to claiming at 67 (your FRA). However, if you wait until 70, you get an 8% increase for each year after FRA. That's a potential range from 70% of your full benefit (claiming at 62) to 124% (claiming at 70). This is why getting a personalized analysis is so important. For some people, claiming early makes sense; for others, waiting is better. It depends on your health, longevity in your family, other income sources, and immediate financial needs.

One other consideration: since you mentioned you're still self-employed, be aware that if you claim any Social Security benefits before your Full Retirement Age, you'll be subject to the earnings test. For 2025, if you earn more than $22,320, your benefits will be reduced by $1 for every $2 you earn above that limit. At your FRA, this earnings test goes away completely and you can earn any amount without reduction. This is another reason many self-employed individuals choose to wait until at least their FRA to claim benefits.

have u checked if ur eligible for divorced spouse benefits from any ex husbands? if u were married 10+ yrs and didn't remarry before 60 u might be able to claim on their record instead. just another option to look into!