Key Points
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Your Social Security filing age plays a role in the amount of money you get each month.
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When you only have to consider your own needs, the choice can be more clear cut.
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When you’re married, it’s a whole different ballgame.
Your Social Security benefits may end up playing a more important role in your retirement than you’d expect. Not only can they supplement your savings, but Social Security benefits are eligible for an annual cost-of-living adjustment (COLA) that offers protection against inflation.
Plus, your monthly Social Security checks are guaranteed for the rest of your life. If you manage your retirement savings well, that money hopefully won’t run out on you. But it technically could. So it’s important to file for Social Security at the right time, since your claiming age has a direct impact on how much the program pays you every month.
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Filing for benefits at full retirement age, for example, means you get your monthly checks without a reduction. That age is 67 for anyone born in 1960 or after.
You can also boost your monthly benefits by 8% for each year you wait beyond full retirement age to file, until you turn 70. And while you can claim Social Security once you turn 62, your benefits are reduced for each month you take them ahead of full retirement age.
The decision to claim Social Security is tricky enough when you only have your personal financial needs to consider. But if you’re married, it could introduce a world of complications.
Why do married couples face a different Social Security decision?
When you’re filing for Social Security, and you’re single, there are certain factors you need to account for in that decision. You should consider how much savings you have, whether you’re still able to work, and how badly you want to bring your career to a close.
Your health should also play an important role in the decision. And the better it is, the more inclined you may be to file for Social Security at full retirement age or later.
On the flip side, poor health could drive you to claim Social Security sooner. If you don’t expect to live very long, starting those monthly checks earlier could yield a larger lifetime payout.
But being married changes the equation. If you’re the higher earner in your household, once you pass away, your spouse will generally be entitled to survivor benefits from Social Security. Those benefits should equal the monthly benefits you’re eligible to collect.
If you file for Social Security early and reduce your monthly checks, you’ll also reduce your spouse’s survivor benefits. That could put your spouse in a tough spot if you don’t have much savings and they need those benefits to stay afloat.
Remember, too, that if your spouse outlives you, they may end up needing long-term care that Medicare won’t pay for. They could also end up with large medical bills as they age. So the more Social Security you’re able to leave them with, the more stable their later years might be.
That, however, could put you in a tough spot. If you delay Social Security or even force yourself to wait for full retirement age to file, you could deny yourself money you want sooner. So it’s really not an easy decision.
It’s all about communication and balance
You don’t necessarily need to base your Social Security filing decision solely on what’s best for your spouse. But it’s definitely something you should take into account.
It’s also important to talk to your spouse about claiming benefits to hear their thoughts on an optimal filing age. They may, for example, encourage you to file a bit sooner so you can enjoy that money while your health is still in good shape, even if it means getting smaller survivor benefits down the line.
Plus, if you and your spouse are each entitled to Social Security because you both worked for many years, it’s crucial to coordinate your claims. And that might allow for a nice compromise where, say, the lower earner in your household files for benefits early while the higher earner delays.
If you’re married, your Social Security filing age is no longer an individual decision. Rather, it’s one that could have a huge impact on your spouse, both while you’re alive and if you pass. So it’s important to take your spouse’s needs as well as your own into account and to communicate openly about what’s best for you both.
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