Overview

Main Menu Name: Security

Calculates the present value of social security benefits for a surviving spouse and/or each child or children, and the total present value of all future social security payments.

In this article:

• Background
• Why should I use this calculator?
• Getting Started
• Entering Data
• Results

Background

Significant benefits are payable to the survivors of a deceased insured worker.

Monthly benefits may be payable to a surviving spouse as mother's or father's benefits. This payment is made to the widow or widower regardless of age, assuming that the person is caring for at least one child who is under age 16 or who was disabled prior to age 22. Note that benefits for children age 18-22 who attend college or post secondary school were completely phased out in April 1985.

• A child's benefit is payable monthly for each child who is under age 18 and for children over age 18 who were disabled prior to age 22.
• A widow(er) benefit is payable monthly to the surviving spouse (or surviving divorced spouse) of an insured worker when the survivor is age 60 or older.
• A disabled widow(er) benefit is payable monthly for disable surviving soused ages 50 to 60.

Up to one half of the social security benefit received by taxpayers whose incomes exceed certain base amounts is subject to income taxation.

Why should I use this calculator?

• To develop a private insurance program by determining the need for more or less coverage.
• To coordinate social security coverage with corporate fringe benefit plans.
• To review the timing of social security payments.

Getting Started

Significant benefits are payable to the survivors of a deceased insured worker:

Monthly benefits are payable to a surviving spouse as "mother's" or "father's" benefits. This payment is made to the widow or widower regardless of age, assuming that the person is caring for at least one child who is under age 16 or who was disabled prior to age 22. Note that benefits for children age 18-22 who attend college or post secondary school were completely phased out in April 1985.

• A "child's benefit" is payable monthly for each child who is under age 18 and for children over age 18 who were disabled prior to age 22.
• A "widow(er) benefit" is payable monthly to the surviving spouse (or surviving divorced spouse) of an insured worker when the survivor is age 60 or older.
• A "disabled widow(er) benefit" is payable monthly for disable surviving spouses ages 50 to 60.

Up to one half of the social security benefit received by taxpayers whose incomes exceed certain base amounts is subject to income taxation.

Entering Data

1. Name of Spouse:  Enter the name of the client's spouse.
2. Age:  Enter the age of the spouse.
3. Projected Interest Rate:  Enter the projected average interest rate.
4. First Year:  Enter the starting year of the analysis.
5. Number of Years:  Enter the number of years the analysis should cover.
6. Children:  Enter the number of children, if any, assumed to be survivors eligible for social security (valid inputs are 0-9). Remember: a child's benefit is payable monthly for each child who is under age 18 and for children over age 18 who were disabled prior to age 22.

Results

The program calculates the present value for each category of social security payment, and the total present value of all future social security payments.