It all depends on the type of benefit you want to claim.
Think tank proposes capping Social Security benefits at $100,000
A Washington think tank has proposed capping annual Social Security benefits for married couples at $100,000 as a way to reduce a looming deficit in retirement trust funds.
Your Social Security benefits won’t cover all of your expenses in retirement, but understanding how the program works and the tools that affect your check can help you save even more. One of the most important things for couples to do is adjust their advocacy strategies.
If your spouse decides to enroll before you, you should know how that will affect your future benefits. That way, you can estimate how much you’ll have to pay for your retirement yourself. The answer depends on what kind of benefits you plan to earn in the long term.
Does not affect social security benefits
When your spouse first enrolls in Social Security, he or she will receive the retirement benefits he or she received based on his or her work history. This depends on how much Social Security payroll taxes you paid over your career and your age when you enrolled.
Their retirement benefits have nothing to do with your retirement benefits. You will be selected based on your work history. If your partner decides to make a claim, your retirement benefits will not change. However, it is possible if you apply.
You can claim from age 62, but if you register at that point, the check you’ll receive will be much smaller. Each time you wait to apply, your benefits increase until you qualify for the maximum check at age 70.
Opens the way for you to claim spousal benefits
Couples can also receive spousal Social Security benefits if their partner qualifies for retirement benefits. This equates to up to one-half of the benefits to which your spouse is entitled at Full Retirement Age (FRA). That’s 67 years old for most workers today, those born after 1960.
You cannot claim spousal benefit until your partner registers. If your spouse has already claimed, the Social Security Administration will automatically determine whether your retirement benefits or spousal benefits are larger when you finally file. You can only get one or the other.
If your spouse applies first and you want to switch to spousal benefits based on your work history, you will have to wait until you are ready to apply for benefits. Next, you’ll need to contact the Social Security Administration to find out if this move will get you more money than you’re currently receiving. If that happens, they will now begin receiving spousal benefits.
it locks your survivor benefits
Survivor benefits are benefits you receive after your partner dies. In some cases, it can equal up to 100% of the benefits your spouse received or was eligible for at the time of death. But again, if you’ve already claimed retirement benefits that exceed the survivor benefit you’re entitled to, you’ll keep your retirement benefits instead.
Although your spouse filing for Social Security early will not affect the amount of your spousal benefit, it may permanently reduce the survivor benefit you are entitled to after your spouse dies. This is worth considering in situations where one partner has a terminal illness and may rely heavily on Social Security after the other dies. An ill spouse may choose not to claim Social Security at all to increase the survivor benefits his or her family receives after his or her death.
There is nothing wrong with one spouse insisting before the other, as long as you and your partner are on the same page and understand the consequences of this action. Make sure you have time to discuss all your options and keep each other informed if either of you decides to change your plans in the future.
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