URGENT UPDATE: Millions of couples are questioning how their Social Security (SS) benefits interact, especially as new data highlights the potential for significant financial impacts. For spouses who have both reached their full retirement age (FRA), understanding how to maximize benefits is crucial right now.
Today, a concerned wife wrote in seeking clarity about her situation. She reached her FRA in June and is contemplating claiming her SS benefits while her husband currently collects his. Notably, both partners can receive their full benefits without reductions, according to Russell Gloor, a certified social security advisor with the Association of Mature American Citizens.
As of now, the wife is accumulating Delayed Retirement Credits (DRCs) at a rate of 0.667% for each month she delays filing. This translates into a higher monthly benefit when she eventually claims her SS. If her benefit at FRA is less than 50% of her husband’s, she may be eligible for a “spousal boost,” which could significantly increase her payout.
Here’s how it works: If the wife’s benefit is lower than half of her husband’s FRA amount, she will receive the difference as a boost. Conversely, if her benefit is higher, she will only receive her own SS amount based on her earnings. The spousal boost stops growing at FRA, making it essential for her to consider filing now and retroactively claiming benefits back to June.
This situation is increasingly common, as couples often do not fully understand the implications of both partners collecting SS. Gloor emphasizes that each spouse’s benefits are calculated separately and do not negatively impact one another. With the average benefit at stake, this guidance is critical for many families.
Looking forward, couples must weigh the pros and cons of immediate filing versus further delaying for increased DRCs. Benefits can be earned until the age of 70, at which point the maximum possible Social Security benefit can reach about 127% of the personal FRA amount.
For those still unsure, Gloor encourages them to seek personalized advice. Individuals can submit questions to the AMAC Foundation Social Security Advisory or reach out via email at [email protected].
This information is vital, especially as more couples approach retirement and seek to secure their financial futures. Share this update with anyone who might benefit from understanding their Social Security options better!
