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Maximize Your Benefits: When Should Couples Claim Social Security Together?

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Should you claim Social Security at the same time as your spouse? Here's how to know.

Being married during your retirement years comes with several advantages. It not only provides companionship during a phase when daily work no longer occupies your time, but it also allows you and your spouse to combine savings and reduce costs by sharing expenses such as housing and transportation.

Another benefit of being married in retirement is the potential to each receive a monthly Social Security benefit, enhancing your income and financial flexibility.

When it comes to Social Security, you have several options for when you can start claiming benefits. You’re eligible to begin receiving payments as early as age 62. However, claiming before reaching full retirement age will result in permanently reduced monthly benefits.

Alternatively, you can delay claiming past your full retirement age to increase your monthly benefit. But keep in mind that after you reach age 70, your benefits will no longer increase.

If you’re married, it’s crucial to synchronize your Social Security claiming strategies with your spouse. You might be contemplating whether it’s beneficial for both of you to start receiving Social Security at the same time. It might be advantageous, but it’s not guaranteed, so it’s important to carefully evaluate your options before making a decision. Here are some strategies you might consider.

1. Claim Early to Access Funds Sooner

If you and your spouse have accumulated a substantial amount of savings, you might choose to start receiving Social Security benefits at age 62. If you’re the same age, this would mean both of you would begin your benefits simultaneously.

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This approach has its advantages. For instance, if you can manage your living expenses with your combined benefits, you might be able to leave your savings untouched for a few more years, potentially increasing your wealth, especially if your savings are in a Roth IRA or 401(k), which could benefit from more years of tax-free growth.

However, there’s a downside to consider. Claiming early means that both of your monthly benefits will be reduced for the rest of your lives. If your savings aren’t as robust as you’d like, this might not be the best strategy for you.

2. Claim Together at Full Retirement Age

If both you and your spouse share the same full retirement age, you might decide to claim Social Security at that time. By doing so, you avoid any reductions to your monthly benefits, which could mean a higher combined income throughout retirement.

However, the size of your savings should play a role in this decision. If your savings are smaller than expected, it might be wise for at least one of you to delay claiming Social Security past full retirement age to secure a larger monthly benefit.

3. Stagger Your Social Security Claims

Another effective strategy could be for the spouse with the lower Social Security benefit to claim first, while the spouse with the higher benefit delays their claim.

This approach offers several financial benefits. It provides immediate access to some income, reducing the pressure on your savings, and allows the benefits for the higher earner to increase during the delay, guaranteeing a larger payout. This is common because the higher earner’s benefits will increase more significantly than the lower earner’s during the postponement.

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Nevertheless, you might choose to claim the higher benefit early to bring more money into your household sooner, and delay the lower benefit to potentially equalize the benefits after delayed retirement credits are applied.

Ultimately, there are numerous strategies for claiming Social Security benefits when you’re married. The best approach is to analyze different scenarios to see what works best for you and your spouse.

It’s also advisable to consult a financial advisor about when to claim benefits. They can provide valuable insights that lead to a more secure financial decision.

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