Taking early Social Security retirement could mean financial benefits for minor children

The business desk at The News Tribune sometimes receives calls asking for advice on matters related to retirement and investing.

Occasionally, readers offer advice of their own. Here’s an example.

Reader Steven Lay of Everett wrote to say he is considering retiring at age 62 and has discussed the matter with financial advisers — who are not keen on suggesting that clients take Social Security benefits before full retirement age.

Lay writes: “I will receive $1,750 in Social Security when I turn 62. My daughter will also receive $1,150 in Social Security. There is a little-known clause in Social Security whereby if I retire at age 62 and my daughter is still in lower education, she will receive Social Security until age 18 or when she completes high school. My daughter is 14, so for 4 years she will receive $1,150 a month.”

According to the Social Security Administration, minor children are, in some circumstances, eligible for benefits if a parent who is eligible for Social Security benefits retires. There are tax implications, however, such as if the son or daughter has a certain level of wages or earnings.

There are other strategies you might consider, including “file-and-suspend” or applying for spousal benefits. For further information, check with your financial adviser. More information about benefits for minors is available at ssa.gov/pubs/EN-05-10085.pdf.

This story was originally published September 16, 2015 at 8:26 AM with the headline "Taking early Social Security retirement could mean financial benefits for minor children."