Where the maximization of Social Security benefits is concerned, a bit of learning can go a very long way. Understanding options and making good choices can make a substantial difference in a number of benefits a person receives, and Retirement Planning in Yuba City CA becomes even more important for married couples. The suggestions below can provide a great boost to overall benefits levels.
Delaying Couples’ Benefits
The longer a person waits to file for Social Security, the more benefits that person will get later on. However, such a Retirement Planning rule may not make any sense to a married couple where one of the spouses makes more money, and it is important to time benefits correctly. For the average couple, it’s usually best to delay benefits for the high-earning spouse, and to start benefits for the lower earner as soon as possible. If a person knows their life expectancy is short, an early collection may be a good option even if benefits are reduced.
Another way to maximize Retirement Planning in Yuba City CA is to file the claim and then suspend it. If a spouse is at retirement age, they can claim their benefits but put off receipt until later. Meanwhile, the other spouse can receive benefits based on their partner’s work history if they are 62 or older. This approach works for couples with differing incomes, and it makes sense if the low earner wants to retire and the benefit exceeds what they’d receive.
Changing the way benefits are received can help a couple with similar finances maximize their Social Security. If a client’s life expectancy is average, and they have enough cash flow, such a withdrawal strategy can be a good idea. Once a spouse arrives at retirement, they can apply and suspend benefits. The other spouse could apply for restricted benefits, which they’d get until the age of 70. When the first spouse turns 70, they lift the suspension and receive their own benefits.
Maximizing Social Security benefits is a complex process, especially for a married couple. When a plan is being created, it is important for couples to examine all possibilities rather than relying on generic rules. Depending on the spouses’ ages, health and employment histories, couples can coordinate their benefits in many ways. A retirement planning advisor can look at the couple’s finances and recommend an appropriate course of action.