Claiming Social Security is always complicated. If you are married, this decision becomes next-level complicated. Many couples don’t understand how to optimize combined Social Security benefits and, as a result, they end up leaving a substantial amount of money on the table.
So, why is it so hard for couples to make the optimum Social Security claiming choice?
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Here are some of the key reasons why married couples often fail to get the most monthly or lifetime income from Social Security, despite the fact that these benefits are an important source of inflation-proof income.
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Couples often end up struggling to make sound choices when it comes to their Social Security benefits claims because:
While it is understandable that many people struggle to optimize combined Social Security benefits, it’s also a problem since these benefits are so important in helping you make ends meet without draining your retirement plans too quickly.
If you want to leave more money in your 401(k) or IRA so you can reduce the chance of your accounts running out, be sure to create a strategy with your spouse regarding how to make the most of your combined benefits.
One common strategy involves the lower-earning partner claiming benefits first, bringing in some Social Security income, and allowing the higher earner to delay and grow a bigger Social Security check. This strategy is worth looking into.
You can also work with a financial professional to understand all the different options for claiming as a married couple, so you can find the best one to meet your needs.
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