Planning Retirement As A Couple
Many couples plan on combining their Social Security benefits to create a steady income stream. But unexpected events, such as the loss of a spouse, can disrupt those plans.
The Dilemma Of When To Claim Benefits
While many experts advise delaying Social Security to maximize payments, the right decision depends heavily on personal and family circumstances.
Early Considerations At Age 62
One retiree faced the decision at 62 but chose to keep working and wait for a higher payout later. Her husband, slightly older, also delayed claiming at first.
How Waiting Promised Bigger Checks
The couple believed that holding off would increase their monthly benefits – from about $900 at 62 to an expected $1,700 by full retirement age.
A Sudden Loss Changes Everything
Tragically, the husband passed away three years later, leaving the surviving spouse without the combined benefits they had counted on.
Survivor Benefits Work Differently
Social Security allows a surviving spouse to collect either their own benefit or their late spouse’s – whichever is higher – but not both.
Missed Payments Add Up Over Time
Had she started collecting at 62, the survivor would have received several years of payments before the loss, providing savings or investment opportunities.
The Importance Of Planning For Worst-Case Scenarios
Retirees should consider the possibility of losing a spouse when deciding when to claim Social Security. It’s not pessimistic – it’s practical.
Doing The Math Matters
Running different scenarios and calculating how early benefits compare to delayed payouts can help families avoid costly mistakes.
Knowing The Rules Protects Your Future
Understanding Social Security and Medicare rules is crucial. A single decision can have long-term financial consequences, especially for surviving spouses.