UPDATE: Social Security benefits for married couples are in the spotlight as new information reveals crucial details for those reaching full retirement age. With couples now able to collect their respective benefits, it is vital to understand how these decisions impact overall financial security.
A couple who has been married for 46 years is seeking clarity on how their Social Security benefits will be affected since both have reached their full retirement age (FRA). The wife, who turned eligible in June 2023, is considering filing for her benefits while her husband already collects his.
Experts confirm that both individuals can receive their full benefits without any reductions, provided they claim at their respective FRA. The wife is currently accumulating Delayed Retirement Credits (DRCs) at a rate of 0.667% for each month she delays her claim, enhancing her potential benefits significantly.
The key question arises regarding the possibility of a “spousal boost.” If the wife’s benefit at FRA is less than 50% of her husband’s, she will be entitled to an increase on top of her own benefit amount. Conversely, if her entitlement exceeds this threshold, only her individual benefit based on her earnings will apply.
Russell Gloor, a certified Social Security advisor from the Association of Mature American Citizens, advises couples to act quickly. “If you qualify for a spousal boost, it’s crucial to claim your benefits now to receive retroactive payments back to June,” he stated.
For couples exploring their options, Gloor highlights that the spousal boost ceases to grow once reaching FRA. Therefore, if eligible, couples should prioritize their claims to maximize their benefits before potentially missing out.
Additionally, individuals can earn DRCs up to age 70, which can elevate their monthly benefit to nearly 127% of their personal FRA amount. This strategy could be especially beneficial for those in good health who can afford to delay their claims.
As more couples navigate their Social Security options, understanding these dynamics is crucial for financial planning in retirement. For personalized advice, couples are encouraged to consult with a Social Security expert or visit the AMAC Foundation at amacfoundation.org/programs/social-security-advisory.
Stay informed as we continue to track updates on Social Security benefits and their implications for retirees. This evolving situation could significantly influence the financial futures of millions of Americans.