Triston Martin
Oct 06, 2023
Though it's only one part of the retirement puzzle for a married couple, Social Security is often confusing. The age at which you begin receiving your benefits is a common concern among individuals approaching retirement. Only some questions have a cut-and-dry solution.
It's essential to consider your age, your full Social Security retirement age, your professional earnings, your retirement savings, and your health status when planning how to maximize your Social Security benefits as a couple. Taking Social Security too early might mean forgoing thousands of dollars in payments throughout your lifetime.
Planning for retirement should include Social Security, which provides a guaranteed income for life when you retire. The term "longevity insurance" comes to mind. Social Security may become increasingly important to you if you have a lengthy life expectancy and plan to exhaust your other retirement assets.
The monthly deposits will continue no matter where you are, even in a nursing facility. Couples must deliberate about when to retire; each partner should begin collecting Social Security.
When is the best time to begin collecting Social Security? After getting hitched, this question takes on new significance. You and your spouse could make the best choice if you look at some examples of how other married people have handled similar situations.
You'll get the maximum amount possible if you delay collecting Social Security payments until you reach full retirement age. The amount you receive will decrease if you make an early claim. Social Security payments can be started as early as age 62.
Still, married couples can maximize their benefits by waiting to receive them until both spouses have reached full retirement age. Additional advantages accrue throughout a person's life if they can wait. Your Social Security payments will increase by 0.84% annually, or 0.67 percent monthly, for every year you wait to receive them after you reach full retirement age.
In retirement, this can add up to a substantial windfall. Your Social Security payments will be reduced if you receive them before your full retirement age.
Although the reward may be less, this choice may be preferable if you need the money quickly due to health problems or another emergency. Claiming early on Social Security may be the best option if you need the cash flow it offers soon after retirement.
Claiming as soon as possible may be of significant assistance, even if receiving less than 100% of the benefits if one or both of you are experiencing chronic health difficulties and may not survive long enough to warrant waiting.
If your lower-earning spouse has never worked employment that would have resulted in Social Security taxes being withheld, filing for benefits on the higher-record earners may be the best option to maximize survivor benefits.
Using a "split approach," in which the higher-earning spouse waits to claim benefits until the other spouse has been receiving them for a certain number of years, is usually the best option for deciding which spouse will begin collecting Social Security first.
Delaying Social Security benefits can result in a substantial increase in retirement income if you and your spouse are both healthy and content to continue working or if you have other sources of retirement income that can cover your expenses for a few more years.
Consider delaying Social Security benefits for both couples to accrue delayed retirement credits if you and your spouse have sufficient retirement assets. To be at this spot right now is fantastic: Benefits can be increased by up to 13%, giving you more leeway in your retirement.
What is the "best" choice for married couples regarding Social Security? Regarding Social Security, there needs to be a correct strategy for married couples to follow. Many variables are at play, including but not limited to age, income, retirement savings, estimated Social Security benefits, health, and life objectives.
If they have a successful career and are in excellent health, some people may remain working until age 70 to maximize their retirement benefits. In contrast, others may choose to retire earlier.
Some people may have to start drawing their Social Security benefits early because they're caring for a sick spouse or elderly relative. Some others may find themselves unemployed and eligible to receive Social Security.
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