Financial plans with only one client will have the option to add the Spouse Social Security income card. This card can be used to model benefits based on a divorced or deceased spouse’s record. To add the Spouse Social Security income card, navigate to the Profile > Income section, and then click Add Income > Other > Spouse Social Security:
The Spouse Social Security card will allow you to capture the essential information required to illustrate Spousal Social Security benefits that the client may be entitled to. This benefit will be calculated using the rules for either a divorced spouse or a deceased spouse. The data inputs will adjust based on the relationship selected and whether the spouse was already receiving Social Security income. Benefits can be seen in the Retirement > Cash Flows > Summary tab, within the Income Inflows > Social Security column.
Ex-spouse married for 10+ yrs
Clients may be entitled to a spousal benefit based on the earnings record of their previous spouse after being married for ten or more years. The Divorced Spouse benefit is based on half of the ex-spouse’s full retirement benefit (PIA). If that amount exceeds the client’s own retirement benefit, the client will receive the difference as a spousal benefit. Select ‘Ex-spouse married for 10+ yrs’ within the Relationship field to reflect a benefit from a divorced spouse:
- If the ex-spouse is already receiving Social Security Income, the client’s benefit will be based on the ex-spouse's Social Security Income and when the ex-spouse filed for benefits.
- If the ex-spouse is not already receiving, the client’s benefit is based on the ex-spouse’s monthly benefit value (PIA).
- If the ex-spouse is not already receiving, they must be divorced for over two years before the client starts to receive benefits.
Clients may also receive a survivor benefit after the ex-spouse is assumed to have passed away, based on their birthday and life expectancy as entered in the Spouse Social Security card.
Deceased Spouse
Clients may be entitled to a survivor benefit based on the earnings record of their deceased spouse. The amount the client will receive is based on the benefit amount the ex-spouse was receiving, or the ex-spouse’s Primary Insurance Amount (PIA) value if they had not started to receive benefits. If that amount exceeds the client’s own retirement benefit, the client will receive the difference as a survivor benefit. Select ‘Deceased Spouse’ within the Relationship field to reflect a benefit from a deceased spouse:
To calculate the survivor benefit, enter the ex-spouse’s PIA (if not Already Receiving) or their benefit amount & filing age (if Already Receiving). In addition, we need to know the ex-spouse’s birthday and age at death.
Benefit amounts may be reduced if clients start receiving the survivor benefit prior to their full retirement age.
We assume clients begin receiving survivor benefits as soon as they are available. Benefits are only available once the client reaches age 60 and the ex-spouse would have been eligible to file (age 62).
Note on Spousal & Survivor Benefits in Joint Plans
In financial plans that include a co-client, spousal and survivor benefits will be automatically calculated from the default Social Security income cards. The Spouse Social Security income card is only used when a single client needs to document spousal/survivor benefits from a previous relationship. The Spouse Social Security card will be automatically removed if a co-client is added to the plan.
