Only a few spouses I’ve met think of filing for Social Security benefits as a huge decision with significant ramifications. Some of my long-term consultants tell me that Social Security is simple and not worth getting the spouses together in the office to discuss.
It Takes More
You probably know that when you wait till 70 before filing, your Social Security benefit amount will be the highest. So, if they file for benefits immediately, you become eligible (62 for retirement benefits or 52 for disability claims), and your benefit will be the lowest.
However, it is not how married couples can maximize their Social Security benefits. Failure to plan on when to file for Social Security can result in the loss of thousands of dollars.
- Also Read: Why Survivor Benefits Are an Essential Safety Net for Federal Employees and Their Loved Ones
- Also Read: Five Medicare Facts That Federal Retirees Should Prioritize to Save Money and Improve Their Benefits
- Also Read: Four Retirement Moves Federal Employees Are Making to Stay Ahead in 2025
Social Security is not simple. Getting it wrong can hurt your retirement income. First, you should consult with a financial advisor who will assess your and your spouse’s situation from all sides, as no two situations are the same.
Varying work histories result in different primary insurance amounts (PIAs) at different FRAs for two people. The PIA is the benefit you get for postponing or not claiming benefits until you’re 70 years old.
How long do you think you’ll live?. You should be aware that your life expectancy will affect the overall amount of Social Security payments you and your spouse can get.
Here’s a Deep Dive into the Social Security Sea.
I recently worked with an advisor who had trouble with a couple’s case. In 2019, the husband applied for Social Security benefits. The wife, 64, had retired but had not applied for Social Security yet.
The question was whether she could take a spousal benefit for the next 3+ years based on her husband’s benefit. Then, when she reaches 70, switch to her own benefit, which will almost certainly be larger due to Delayed Retirement Credits.
A restricted application is the filing technique that the advisor believed was used. However, because she hadn’t turned 62 before January 1, 2016, the wife wasn’t entitled to file a restricted application under the Bipartisan Budget Act of 2015.
Her full retirement age (FRA) is two years away. To maximize the total benefits that she and her husband would receive, we suggested she take 24 months of lower benefits. If the woman outlives her husband, she will be entitled to survivor benefits based on her husband’s record.
Surprised?
Admittedly, this is one complicated illustration of a couple’s approach. This example emphasizes the need to take a broad view of all possibilities available under the over 2,700 Social Security rules.
Waiting until you’re 70 isn’t necessarily the best approach to get the most out of your Social Security income.
Contact Information:
Email: [email protected]
Phone: 3604642979
Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.
Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.
Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.
Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.
Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.
With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.
Aaron can help you and your family to create, preserve and protect your legacy.
That’s making a difference.
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.
