Podcast Episode 316: Social Security Spousal Benefits
When we talk about having a strategy for Social Security, it’s because the SSA isn’t going to point you toward the option that will pay you the most. It’s on every individual to understand the benefit options available and find the path that will help you get the most out of your retirement income. One of those options is the spousal benefit so let’s talk about what it is and who is eligible.
Most retirees will rely on Social Security to provide a substantial chunk of income in retirement, but not everyone is aware of the spousal benefits that exist. This would obviously apply to both spouses and they need to know about, but we’ve found that it’s often more important that the wife is aware of how this works.
So let’s start with the details. Spousal benefits allow you to collect half of your husband or wife’s full retirement age benefit. That means you’re eligible for 50% of your spouse’s amount, and that full retirement age is between 66 and 67 years.
This can be a huge benefit for people that have left the workforce for any reason, which is pretty common for one spouse in a marriage because it allows you to maximize the amount of money that you’re getting from Social Security. Oftentimes, someone might take a reduced amount of their own benefit as early as 62 and then transition to that spousal benefit at 66 or 67.
The podcast will provide a few examples of how the numbers would work but the main takeaway is that spousal benefits can end up providing more income than you were expecting. Work with your financial professional to figure out the best Social Security claiming strategy for you and your spouse.
If this is something you’re ready to explore with us, take advantage of our complimentary Money Map review and we’ll start the conversation and learn more about your goals.
Here’s what you can expect to learn in this episode:
• How spousal benefits work and how much you receive.
• What happens to the benefits when a spouse passes away?
• Options for paying for emergency medical expenses.
• What specialties should you expect from an advisor?