October, being National Retirement Security month, is a good time to look at Social Security, and how America’s premier retirement program protects seniors in their “golden years.”  But often overlooked is that Social Security also offers security for dependents of those eligible to collect Social Security benefits, including minor children. The following is a “real life” story about how Social Security provided “retirement security” for grandparents who became adoptive parents for their deceased daughter’s child, and how Social Security continues to provide financial security for the child after her grandparents (and adoptive parents) passed away.  This is “Cassidy’s Story;”

Cassidy’s story

Baby Cassidy was only 4 years old when her mother died. Cassidy’s mother had never worked so the toddler wasn’t entitled to a Social Security survivor benefit from her deceased mother. But more important than the Social Security benefit was that Cassidy’s maternal grandparents, Bill and Phyllis, fought for and were granted legal custody of the child. Soon thereafter, Bill and Phyllis legally adopted Cassidy – their deceased daughter’s beautiful little girl.

Obviously, Bill and Phyllis were now older “parents,” both collecting their individual Social Security benefits. Grandpa Bill’s Social Security benefit was highest so Cassidy, as a minor child and now, Bill’s dependent minor daughter, was able to receive SS benefits equal to half of Grandpa Bill’s Social Security “primary insurance amount” (PIA).

But little Cassidy’s life was soon disrupted again when, just a few years later, Grandpa Bill passed away. Cassidy’s grandma and adoptive mother Phyllis still cared for the child who, as Bill’s adoptive daughter and surviving minor dependent, was now entitled to 75% of Bill’s PIA, instead of the 50% she was receiving while her adoptive father was alive.

Life, however, wasn’t done yet with little Cassidy. Just a little over 2 years after Bill died, Grandma (and adoptive mother) Phyllis also died, leaving Cassidy, once again (and still a minor) without a responsible adult to care for her. 

Throughout Cassidy’s young life, her Aunt Alexis – her deceased mother’s sister – was a loving and caring presence. Alexis had been a part of Cassidy’s life since the child was born and, with both her parents now deceased, Alexis quickly sought and was granted legal guardianship of her young niece. Indeed, Alexis’ intent was to adopt Cassidy as her own, but before doing so she contacted the AMAC Foundation’s Social Security Advisory Service to investigate the potential impact on Cassidy’s Social Security income, needed to help raise the child.

Exploring what would happen if she adopted young Cassidy was prudent on Aunt Alexis’ part, however had she adopted the child, Cassidy would continue to receive her benefit as Grandpa Bill’s surviving adoptive daughter. For now, her Aunt Alexis remains Cassidy’s legal guardian, and Cassidy continues to receive benefits as Grandpa Bill’s adopted minor daughter. Cassidy can collect those survivor benefits until she is 18 years old (or, if she is still in high school, until she is 19).  Aunt Alexis is obligated, as Cassidy’s Representative Payee, to use the Social Security money only for Cassidy’s welfare which, in this case, includes saving some of it for Cassidy’s future. 

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The above is a true story (only the names have been changed) but it serves as a good example of how “retirement security” isn’t only for each individual senior in retirement. Rather, it extends to eligible dependents, in this case offering Social Security benefits to provide financial security until Cassidy is no longer a minor. This is “retirement security” in real life.