Benefits for younger children with older parents

September 18, 2014

A commonly overlooked aspect of Social Security is that it can go beyond what just an individual can draw.  Most people are aware that there are spousal benefits, death benefits and disability benefits.  Most people probably haven't heard about the benefits available to younger people (children with older parents) up to the age 18 or 19 if still in high school.

 An older parent claiming Social Security at his or her FRA (Full Retirement Age) allows the younger child a benefit of 1/2 the parent's PIA (Primary Insurance Amount) per month.  This is available to each child of the older parent but subject to a Maximum Family Benefit (MFB), which is generally 150%-180% of the worker's PIA.

Children adopted by their grandparents may be entitled to Social Security if their grandparents are currently drawing benefits.

The parent or grandparent (if they have adopted grandchildren) must have filed for benefits in order for children or grandchildren to draw benefits.  If a parent wants to delay his or her benefits in order to earn delayed credits, he or she may file and suspend at their FRA and start the children's benefits while they accrue delayed credits up to age 70. 

Learn more about Social Security, filing strategies and much, much more at one of our upcoming seminars in Oct.


                            Brandon M. Smith, LPL Investment Advisor Representative
                            Lifetime Planning, Inc.
                            Securities offered through LPL Financial, member FINRA/SIPC