How do stay-at-home parents collect Social Security?

How does a couple collect benefits when one spouse hasnt worked outside the home? Photo by Flicker user Ed Yourdon.

Larry Kotlikoffs Social Security original 34 secrets, his additional secrets, his Social Security mistakes and his Social Security gotchas have prompted so many of you to write in that we now feature Ask Larry every Monday. Find a complete list of his columns here. We are determined to continue it until the queries stop or we run through the particular problems of all 78 million Baby Boomers, whichever comes first. Let us know your Social Security questions. Kotlikoffs state-of-the-art retirement software is available here, for free, in its basic version.

William New York, N.Y.: My wife and I are the same age (64 this July and October). I intend on waiting until age 70 to start collecting Social Security benefits. I was thinking of filing and suspending benefits when I turn 66 (my full retirement age). My wife could then start collecting her spousal benefits. Would we be ahead in the long run if she started collecting her own benefits now (at 64), and then collected spousal benefits when I file and suspend when we are 66? She barely qualifies for her own benefits since she was a homemaker raising five sons for over 30 years.

Larry Kotlikoff: Your wifes benefit at full retirement age will be her permanently reduced retirement benefit, plus her excess spousal benefit since she would have dropped into excess benefit status by filing for her full retirement benefit.

The excess spousal benefit is half of your full retirement benefit less 100 percent of your full retirement benefit. If X is her own full retirement benefit, shell get the amounts A) X times R, which is the reduction factor shell permanently face for filing at 64; plus B) 50 percent of your full retirement benefit less X. Her benefit after full retirement age will then be 50 percent of your full retirement benefit, plus (R-1) times X. Since R is less than 1, if you do what you are considering doing, shell end up receiving a smaller total check after full retirement age through the end of her life. So, no, I wouldnt necessarily recommend your proposed course of action.

Mary Elizabeth Massachusetts: I am 66 and applied for Social security in June 2014. I have only 25 credits since I stayed home to take care of my children. Social Security denied me and said I am short and need 15 more credits. They told my husband last year when he applied that I could apply under his name. What should I do, and who is telling me the truth? I am getting the run around.

Larry Kotlikoff: You do need 40 credits to qualify for your own retirement benefit. But you dont have to work another 15 quarters to get those extra 15 credits. If you earn enough in a given quarter, you can garner multiple coverage credits.

You do, it seems, now qualify for a spousal benefit. Your total check will be half of your husbands full retirement benefit (not necessarily what hes now collecting) for the rest of your life (but adjusted for inflation). There is no gain to waiting to collect your spousal benefit. And dont apply for retroactive benefits for any months prior to full retirement age because you will have your spousal benefit permanently reduced.

Jacqueline Illinois: I started taking Social Security at age 62 and continued working. I am now 66 and still working. My ex-husband passed away last year and had been on Social Security disability since 2010. We were married for 20 years. Am I able to draw my Social Security and draw from my ex-husbands Social Security? I have not remarried.

Larry Kotlikoff: You are eligible to collect the larger of either your current reduced retirement benefit or your widows benefit based on your husbands work record. This can also be described as collecting your own reduced retirement benefit plus your excess widows benefit, where the excess widows benefit is just the positive excess of your widows benefit over your own reduced retirement benefit. Your widows benefit will be calculated based on a special RIB-LIM formula for widows of disabled workers.

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How do stay-at-home parents collect Social Security?