Yes, but there are rules and restrictions.
Think tank proposes capping Social Security benefits at $100,000
A Washington think tank has proposed capping annual Social Security benefits for married couples at $100,000 as a way to reduce a looming deficit in retirement trust funds.
There may come a time when your child will need financial assistance as he or she grows into an adult. Whether you retired and received Social Security benefits based on your years of service, became disabled, or died, there are ways for your children to qualify for Social Security benefits based on the amount you paid into the plan.
Here’s what you need to know:
Who qualifies?
To receive benefits based on your parent’s income record, the following conditions must be met:
- Have a retired parent who is entitled to Social Security benefits;
- have a parent with a disability who is entitled to benefits, or
- I have a parent who died after working a long time at a job that paid Social Security taxes.
If you are unmarried, you can receive benefits based on your parent’s record if:
- they are under 18 years old.
- They are 18 to 19 years old and still in full-time elementary or middle school.
- Are over the age of 18 and have a disability that began before the age of 22
Under certain circumstances, stepchildren, adopted children, dependent grandchildren, or dependent step-grandchildren may also qualify.
How much are my children entitled to?
How much a child receives depends on whether the child receives benefits for retirement, disability, or death.
If you are retired or on disability.
Your child can receive up to half of the benefits you earned over your years of work. If your benefit is $2,000 per month when you claim at your full retirement age (FRA), your child is eligible for up to $1,000 per month. Or imagine you are disabled and receive $1,600 per month. Your child can receive up to $800.
if you die
If you die and your children are still eligible for survivor benefits, they are usually eligible to receive Social Security survivor benefits equal to 75% of your benefits. How much it costs is determined by a formula that takes into account your work history.
There is a limit
If your family collects Social Security benefits based on your work record, there are limits to how much the Social Security Administration will pay your family. The limit per family will be between 150% and 180% of your monthly benefit. So if you received $2,000 in FRA, the most your family can collect based on that record is between $3,000 and $3,600.
If the amount a family is scheduled to receive exceeds the limit, SSA will reduce each person’s monthly benefit proportionately.
Having children can make your retirement planning a little more urgent. You need to think about not only how your family will live after retirement, but also what will happen if you become disabled or die.
The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content partner providing financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
