How to maximize social security benefits for married couples

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The situation is as follows: You and your spouse are about the same age, and you and your financial officer inquire about social security benefits. The first question in your mind is how to maximize social security benefits for married couples.

When you need to make a decision about the payment of social security payments, you are already close to age. None of you need to accept this type of payment at any age, but of course you can use one of the monthly payments to cover your expenses.

this is Quite common sense Among people who are close to or have started receiving social security payments, the longer they wait, the more income they will receive each month. In your case, you may know which spouse gets the most income. That will be one of you who makes more money and thus contributes more.

So, suppose you two decide that one of you needs to start enjoying social security benefits immediately. But which one of you? Do you now accept the benefits of higher-income earners and then add less income, or do you allow the larger income to grow and now accept less income? How can you maximize the social security benefits of married couples?

Guide to receiving social security for couples

This question is very complicated, and the answer is also very complicated. Before deciding whose benefit is required first, there are a few points to consider.

The most beautiful part of social security

As the federal entitlement program proceeds, social security is one of the most successful and popular programs. Many seniors rely on social security payments as their sole income, while others use it to supplement their income from investment and savings.Design one Retirement budget, Taking into account all the funds you will have and the funds you will spend.

However, the place where social security services can best serve U.S. citizens is the treatment of married couples, who may have to consider two social security accounts.

Due to the creation of spouse benefits, married couples can use some fairly complex mathematical equations to determine how to best maximize their benefits over time. Spouses who intend to reach full retirement age at the same time will find it easier to use complex mathematical equations because they are comparing oranges with oranges. This article will explain spouse benefits later.

Term: reminder

There will be multiple references “Full retirement age” It was 65 years old at first, but with the passage of time, workers born in 1960 or later have increased to 67 years old. The full retirement age for people born between 1955 and 1959 is 66 years and 10 months, and for people born before 1955 is 66 years old.

Once you are 62 years old, you can start to receive social security benefits, but once you start, you can Lock in that amount Although you have 12 months to change your mind and suspend payments. The longer you wait to start receiving benefits until you turn 70, the more money you can get each month.

Therefore, let us now start to calculate which couple should receive social security benefits first when both spouses are approximately the same age.

Decisive factor: health

If one spouse earns much more professionally than the other, then their monthly social security payments will be greatly increased. But a couple must decide whether they need a higher cost of living, because as long as you don’t receive the subsidy early, this high pension will only grow to 70 years old.

If your budget can wait, there are two other key determinants to consider when deciding who should receive social security first: the personal health of each spouse and each spouse’s desire to continue working beyond the age of 62.

This is the function of health: if the spouse dies before he reaches the full retirement age and has not yet started receiving SS benefits, the surviving spouse will receive the benefits that the deceased’s spouse received during his full retirement age.

If the spouse dies after the full retirement age without receiving any benefits, the surviving spouse will receive the full pension plus a lump sum Deferred pension. If the spouse receives the pension before their full retirement age and then dies, the surviving spouse will receive a lower monthly amount instead of a larger full retirement amount.

This effectively prompts citizens who have reached the age of 62 to postpone their SS benefits, which is their first opportunity. This also makes the couple play a form of Russian roulette. A spouse who may be considered most likely to die before reaching full retirement age should not receive social security payments early. (This will make the dinner conversation enjoyable.)

Decisive factor: work intention

Now let us consider the work intent. If a spouse wishes to continue working beyond the age of 62, he or she should not receive social security benefits, because every dollar of a certain amount earned each month reduces his or her social security benefits. The amount you can earn each month depends on when (or exactly) when your working spouse reaches their full retirement age.

However, if the spouse wants to continue working without receiving social security payments, they will still pay taxes to their social security accounts, and eventually the monthly social security payments will be much larger.

(As men’s life expectancy increases, this rule becomes more and more important. Some people in need of social security don’t want to retire completely, so they are allowed to make up a certain amount each month without cutting their monthly allowances.)

Now, about the benefits of those spouses

Marriage is often touted as a major financial decision (two people can live as cheaply as one; married people can apply for taxes), but it does come in handy when social security benefits are required.

Many factors are involved, but the basic advantage is that when one spouse makes a request, the other spouse may also receive up to half of the first spouse’s benefits. Spouse benefits only apply to spouses who are also at least 62 years old and apply to the plan based on this article.

If the first spouse receives his benefits before the full retirement age, the spouse benefits will also be reduced.

Federal website Social Security Administration Has a wealth of information and Earnings calculator. There are also more than 1,200 field offices across the country, and their knowledgeable staff can help you determine your social security decisions and focus on maximizing your benefits.

At least in terms of social security, the federal government really wants citizens to get the American labor force that they deserve for a long time.

Kent McDill is a long-term journalist who has been focusing on personal finance topics since 2013. He is the writer of “The Penny Hoarder” (The Penny Hoarder).



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