"When a retired worker claims Social Security, an unmarried minor child generally qualifies for an auxiliary benefit equal to 50% of the parent's PIA. The check is paid in the child's name, usually to the parent as representative payee, and it continues until the child turns 18, or 19 if still in high school full time. If the child became disabled before age 22, it can continue for life."
"The back-of-napkin math is striking. Half of $2,800 is $1,400 per month. Paid from age 12 to 18, that works out to $100,800 of additional household income over six years. None of it comes out of the father's own retirement check. The worker's own benefit is untouched. A child collecting on the record does not reduce the parent's PIA."
"Two details tend to surprise people: The Family Maximum Benefit caps the total Social Security can pay on one worker's record, including auxiliary checks to a child or spouse. For a PIA of about $2,800, the family max lands at roughly $5,000 per month, which leaves room for both a child and spousal check in most cases."
A father raising an elementary or middle school child may reach full retirement age while still working and wondering how long he wants to continue. Social Security benefits that support the worker in retirement can also generate a separate monthly payment for a child. When a retired worker claims, an unmarried minor child generally qualifies for an auxiliary benefit equal to 50% of the worker’s Primary Insurance Amount. The payment is made in the child’s name, usually to the parent as representative payee, and continues until the child turns 18 or 19 if still in high school full time. If the child became disabled before age 22, benefits can continue for life. Family maximum rules can cap total payments on one record, but for many PIAs there is room for both child and spousal checks.
Read at 24/7 Wall St.
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