Potential Errors in Social Security Benefits that Lurk for Married Couples
In the complex world of Social Security benefits, navigating the intricacies as a married couple can be challenging. Here's a breakdown of some key points to help you make informed decisions.
Firstly, it's essential to note that delaying Social Security past full retirement age does not increase spousal benefits. Each year a person delays their claim, their checks receive an 8% boost, up until age 70, for benefits based on their own earnings record. However, this boost does not extend to spousal benefits.
It's crucial for spouses to discuss and plan their Social Security strategies together. One strategy that could potentially yield more benefits is for the higher earner to delay claiming until age 70, especially if there's a significant age gap and the lower earner is likely to outlive the higher earner by many years. This could result in more generous survivor benefits for the lower earner.
Another important aspect to consider is that spouses cannot collect spousal benefits until their partner has claimed Social Security. The maximum spousal benefit a person can collect is 50% of their spouse's monthly check at their full retirement age. In the case of married couples, if the lower-earning spouse's benefit is less than the maximum spousal benefit, they can collect up to $1,600 a month in spousal benefits if their partner is eligible for $3,200 a month.
Lastly, consulting a financial advisor can help spouses come up with a plan to maximise their benefits as a married couple. It's always beneficial to have a professional perspective when making decisions that could significantly impact your financial future.
Remember, this article is intended to provide a general understanding of Social Security benefits for spouses. For personalised advice, it's recommended to consult with a financial advisor or the Social Security Administration directly.
