Married couples approaching retirement have some options to consider on social security spousal benefits. Maximizing social security adult financial education. How are social security spousal benefits calculated. First, it can eventually add up to a larger lifetime benefit. Heres how to maximize your social security benefit. And second, it can mean an increased benefit for a surviving spouse. Your 2019 social security spousal benefits guide the. Selecting the right strategy for when to claim social security will pay off for years to come.
Ken moraif, cfp, is ceo and senior adviser at retirement planners of america, a. Benefits for spouses social security administration. For example, a highearning spouse in poor health may elect to defer taking payments past normal retirement age in order to maximize the widow or widower benefit. Approach social security armed with knowledge about how the system works, and youll be more likely to maximize your benefits. Assuming good health and the prospect for a long life, this has two advantages. How to maximize social security with spousal benefits understand how social security spousal benefits work to make the most of your retirement funds. How are spousal benefits calculated for social security. Strategies for maximizing your social security benefits. If your spouse is already receiving benefits when you apply, or if you and your spouse apply at the same time, we will also check your eligibility for benefits as a spouse. The social security administration offers a calculator that can help you figure your spousal benefit. Thus, you can claim a spousal benefit now at the full retirement age, and then claim a larger retirement benefit later.
Social security spousal benefits are probably the most confusing benefit because they are considered a family benefit. Heres how to maximize your social security payments. But if you have a retirement benefit of your own, visit a social security office to sort out your. If your own social security benefit is less than half of your spouses full retirement benefit, a spousal benefit will kick in to make up the difference. Lowerearning spouses who claim their own social security benefit before full retirement age take a cut of as much as 25%. The spousal benefit can be as much as half of the workers primary insurance amount, depending on the spouses age at retirement. My wife of 26 years will turn 62 this year and would like to file for spousal benefits on my record. Access a wealth of useful information by visiting our benefits planners. Deciding which social security benefits to take and when to take them is one of the most important and complex decisions you must make.
W hats one of the most generous benefits available to retirees. The first and most obvious strategy for maximizing your social security benefit is to simply wait to reach age 70 before beginning to take benefits. It will always be based on your mates primary insurance amount. How to maximize social security with spousal benefits.
Married couples have 81 ways to claim social security. But even if theres no death, you can collect a social security spousal benefit equal to half of what your spouse gets, if. How to maximize your social security benefits the motley. Knowing how your finances affect your spouse s can help both of you avoid future impacts on your incomes. Be aware of an important change in social security law that affects how you can collect spousal benefits.
The most frequent cause for confusion comes from one small difference between benefits for a spouse versus an ex spouse. Understanding spouses benefits social security matters. If you are or were married in the past, you may be eligible for spousal social security benefits. Your 2018 guide to social security spousal benefits the. Heres how it works when you file for spousal benefits. In some cases, it makes sense for both spouses to claim on the same spouses. Can i switch from my social security benefit to a spousal. If you are eligible for benefits this year and are still working, you can use our earnings test calculator to see how those earnings would affect your benefit payments. Maximize my social security was developed by boston economics professor larry kotlikoff. Benefits for you as a spouse social security administration. Married couples can increase the social security benefit the surviving spouse. With survivor benefits, if your late spouse boosted his or her social security payment by waiting past fra to file, your survivor benefit would also increase. If youre serious about your retirement plan, you need to understand how this program works. Your 2019 guide to social security benefits the motley fool.
If youre currently collecting spousal benefits on a retired workers account and theyre low, youll probably be switched to the higher benefit automatically. With just a little planning, you and your spouse can make the most of your social security benefits. In the meantime, the couple can still enjoy receiving the social security benefits of the lowerearning spouse. Top 5 social security books social security intelligence.
Your spousal benefit is not affected by the age at which your husband or wife claimed social security benefits. They can boost the payout when they collect a spousal. Social security benefits continue until the month after the death of the recipient. By a qualifying child, we mean a child who is under age 16 or who receives social security disability benefits. If you will also receive a pension based on work not covered by social security, such as government work, your social security benefit on your ex spouses record may be affected. Your 2019 social security spousal benefits guide heres what you need to know about using spousal benefits to maximize your households social security benefits. Coordinating your benefits with your spouses benefits can help you both get the most out of your social security payments. When it comes to information, we have over 80 years of experience. The social security administration first pays out benefits on. I am 66 years old and started drawing a reduced social security benefit when i turned 62. This is the benefit paid to the surviving spouse, which is paid at a rate equal to the greater of his or her own current benefit, or the deceased spouse s current benefit. Online use our social security retirementmedicare benefit application to apply for retirement, spouses, divorced spouses or medicare benefits.
These benefits are some of the most important, too. It covers just about any social security claiming scenario you might encounter, from child benefits to whether youre a divorcee, parent, retiree, spouse, or survivor. Maximizing social security is a course designed for those looking for options in when and how to take their social security. Social security will not pay the sum of your retirement and spousal benefits. When applying for social security spousal benefits, we recommend using a social securit checklist and going step by step, but below is a summary. My colleagues and i have developed pathbreaking and widely acclaimed software tools to dramatically improve personal financial planning. Benefits generally start from the time you apply, not the time your spouse died. This entry was posted in retirement and tagged benefits from spouse, retirement, social security. How to maximize your social security benefits aarp. T oday were talking about my favorite books on social security. Understand how social security spousal benefits work to make the most of your retirement funds.
If you were married for at least 10 years, you can also claim social security benefits based on an ex spouse s work record. How to claim social security survivor benefits social. Two calculators, social security choices and maximize my social security. Poor health of one or both spouses should affect your decision about when to begin benefits. How married couples can maximize their social security.
Maximize my social security when should i take social. Additional confusion comes from trying to decipher what happens with spousal benefits if you claim before versus after full. If your spouse is already getting social security when you claim benefits, you are subject to the deemed filing rule. Because the spousal benefit can give your household income a big boost if you know all the rules about how to use it. The ultimate guide to social security spousal benefits in. Social security spousal benefits are confusing, and among the most common thing readers ask about. Social security is one of the most valuable and least understood benefits. Spouses that raise families and perform other valuable societal tasks are entitled to a spousal. Many nonretirees downplay the importance of social security because of its. How to maximize social security spousal benefits rules. How to maximize your social security benefits consumer. Social security is the key source of income for most retirees, and that will continue to be the case for a long time.