Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

When Should a Married Couple Avoid Putting Off Social Security Benefits? Sponsored By:Aaron Steele

When one spouse starts receiving Social Security benefits, it can have a considerable impact on the benefits of the other.

Social Security is one of those subjects that elicits strong feelings on both sides of the debate.

One party believes that delaying benefits as long as possible is the best option, while the other believes submitting at age 62 is the best option. Both arguments are valid, but neither applies to everyone, particularly couples.

When you’re single, deciding when to take Social Security payments is relatively straightforward. All you have to do is make a decision based on your needs and life expectancy.

Couples, on the other hand, are faced with a far more difficult decision. So, it’s frequently advisable to take a hybrid strategy. Let’s get into the specifics.

Survivor Benefits

One of the main reasons couples should consider the Social Security issue is that when one spouse begins their benefits, it can directly impact the other spouse’s benefit while both are living, especially once one spouse is gone.

Let’s have a look at an example to understand how this works.

Here are the monthly FRA (full retirement age) payouts for our hypothetical couple:

Spouse 1: $2,000

Spouse 2: $1,000

While both are alive, both will get their own benefits totaling $3,000 a month.

When one spouse dies, the survivor begins to get their own or spouse’s benefit (whichever is greater). So the surviving spouse (whether spouse 1 or spouse 2) would receive $2,000 in this case since it’s the higher of the two benefits.

 

However, let’s suppose that spouse 1 (the higher earner) chooses to postpone her benefits until she is 70 years old, three years past her FRA. That would raise her benefit to $2,480, meaning the surviving spouse would receive extra money as well.

If spouse 2 chose to postpone benefits until age 70, the total benefits they received would grow while both were alive. However, since it’s the lower benefit, it would disappear when one of the spouses died.

That implies that if the higher-earning spouse decides to collect benefits, it will significantly impact the pair while they’re both alive and after one of them has died.

When to File?

And we’re back to the subject of when each spouse should apply for benefits.

Social Security is a compromise for every one of us. Should we forego current benefits in exchange for bigger future ones? And if we live until the point where we “break-even,” we’ll have more than made up for the lost benefits.

 

However, since the benefits of the better-earning spouse endure over both spouses’ lifetimes, the chances of at least one of them exceeding the break-even threshold are bigger than only one life expectancy.

That makes it more enticing for the higher-earning spouse to postpone benefits for as long as possible. In contrast, the lower-earning spouse takes benefits as soon as possible since, from a break-even aspect, it would only make sense for both spouses to postpone benefits if both lived well into their eighties and longer.

Further Thoughts

 

As you can expect, this might not be suitable for everyone. Everyone’s circumstance is unique, and you’ll need to do a lot of research to find the best option for you.

 

Many people’s retirement plans include a significant amount of Social Security, and deciding when they’ll submit will have long-term consequences.

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 withhelping 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:
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 filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.

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.

Contact Aaron Steele

Search for Public Sector Retirement Expert.

Receive the Best advice.

PSR Experts can help you determine if Public Sector Retirement is right for you or if you should look for alternatives.

The Best Advice creates
the best results.

Recent Articles

More Articles by Aaron Steele

Navigating the Final 1-3 Years of the Fed Life Cycle Before Retirement

Let's share some advice for federal workers who intend to leave their jobs in the next five years. These latter...

Putting off Social Security until you’re 70? Why You Might Miss Out on Money

Delaying your first Social Security check until you're 70 is commonly thought to be wise, but this isn't always the...

4 Life Insurance Mistakes to Avoid

Buying life insurance or adding to the amount you already have is always a sound financial decision. Regardless of your...

Search For Public Sector Retirement Expert

Receive the Best advice.

PSR Experts can help you determine if
Public Sector Retirement is right for you or if you should
look for alternatives.

The Best Advice creates

the best results.

Subscribe to our Newsletter

"*" indicates required fields

Our Readers Deserve The Best PSHB and USPS Health Benefits Guidance

Licensed insurance agents who understand PSHB, Medicare, and USPS Health Benefits Plan are encouraged to apply for a free listing.

This field is for validation purposes and should be left unchanged.

Book Phone Consultation

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Get In Touch

Stay up to date on the latest information about Public Sector Retirement.

The Best Advice Creates The Best