Maximize Spousal Social Security Benefits With Start-Stop-Start
Retirement planning is a complex process . Besides retirement savings, you can also use Social Security benefits . If you and your spouse are eligible at the same time, you can use the start-stop-start method to easily maximize your Social Security benefits. This method works well if you need to start receiving benefits before you reach full retirement age.
If you need to start receiving Social Security benefits before you reach full retirement age, your benefits will be reduced for both you and your spouse. The government determines your full retirement age by the year you were born. It also affects the percentage of your benefits reduced. You can find more information about what is both for you here .
Philip Möller, writing about money, explains how the start-stop-start method works:
- One spouse starts receiving social security at about age 62. When that spouse turns 66 years old, he / she stops receiving benefits. This allows the benefit to be increased up to 70 years. You will maximize your benefits with so-called deferred retirement loans . Basically, you earn a certain percentage (depending on when you were born) that your benefits are increased by if you decide to postpone retirement.
- The other spouse will then claim matrimonial benefits at age 66. At age 70, this spouse will transfer to his own retirement benefits.
If you think this method will not work for you and your spouse, you can try the more traditional route described by Möller:
The classic approach is that both Patty and her husband wait until they reach 66, which is their full social security retirement age. During this time, the one with the higher retirement benefit would file and suspend their own retirement benefit, allowing the other spouse to apply for spousal benefit and receive half of the first spouse’s benefit. Then, at age 70, both will transfer to their own retirement benefit.
Whatever you choose, make sure it suits you and your spouse. For more information on how to maximize your Social Security benefits, check out the full post at the link below.