"When you are married, you must talk with your spouse to decide on a plan together to maximize your lifetime income. That's because the decisions one spouse makes can affect the other. For example: If a higher-earning spouse waits to claim, this could result in a higher survivor benefit for the lower earner. On the flip side, though, it could also mean that the lower earner must wait longer to claim spousal benefits, which aren't unlocked if the person whose work record they are based on hasn't retired yet."
"Couples should understand all of the implications of each person's decision to start benefits so they can make a fully informed choice about what's best for both of them."
"When one spouse dies, this can have a very profound impact on the financial situation of the person who has been left behind. The big issue is that, in most cases, both spouses were receiving Social Security benefits, so two payments are coming into the household. The death of one spouse ends one of those payments entirely, leaving the widow or widower with one check when once there were two."
Social Security claiming involves many choices, and married couples face added complexity because decisions by one spouse can affect the other. Couples must coordinate benefit start dates to maximize combined lifetime household income. A higher-earning spouse delaying benefits can increase the survivor benefit for the lower earner, but it can also require the lower earner to wait longer for spousal benefits that depend on the other spouse’s retirement status. Couples also need planning for the death of a spouse because the household may lose one of two benefit checks, leaving only a single payment. Proper strategy can help preserve financial security in retirement and prevent claiming errors that reduce income.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]