Summary:
1. Many retirees rely heavily on Social Security for income, which can be challenging to live on alone.
2. Married couples with both spouses eligible for benefits have more flexibility in retirement.
3. Three strategies include having the higher earner delay benefits, having the lower earner delay benefits, or having both earners delay benefits to maximize Social Security income.
Article:
When it comes to retirement, many individuals find themselves heavily dependent on Social Security for income. However, living solely on these benefits can present financial challenges. For married couples where both partners are eligible for benefits based on their own work history, there is a silver lining. While relying solely on Social Security may not be ideal, having access to two sets of benefits can provide more financial flexibility in retirement.
One strategy to consider is having the higher earner delay their benefits. By waiting until age 70 to claim Social Security, the monthly benefit amount increases by 8% for each year of delay. This can result in larger monthly checks, especially if the higher earner is expected to outlive the lower earner. In the event of the higher earner’s passing, the lower earner may receive a survivor benefit, further boosting monthly income.
Alternatively, couples can opt for the lower earner to delay their benefits instead. This allows for a steady stream of income from the higher earner’s earlier or on-time filing, while the lower earner’s delayed claim could potentially surpass the higher earner’s benefit over time. This approach can be beneficial for couples looking to maximize joint income while maintaining good health in their younger years.
For those aiming for a more substantial Social Security payout, both spouses may choose to delay their claims until age 70. This strategy is particularly advantageous for couples looking to stretch their savings or those with a family history of longevity and good health. By delaying benefits, couples secure a larger guaranteed household income for life, providing peace of mind in retirement.
While these three strategies offer a starting point, couples eligible for Social Security have various options to explore. It is essential to discuss and consider different ideas together to determine the most suitable approach for your unique situation. By strategizing and making informed decisions, couples can make the most of their Social Security benefits and secure a comfortable retirement.
