Older couple

The popular opinion about Social Security is to wait as long as possible before beginning to collect. However, some couples might benefit from a “split strategy”. This means that one couple claims a payout at age 62, while the other one waits as long as possible before collecting.

The size of your benefit increases 8% with each year you delay, from your retirement age until the age of 70. Recently,however, 80% of Americans have filed for their benefits before their retirement age.

Married couple usually go one of two ways in terms of strategy. Either both spouses grab their benefits at age 62, or both wait until age 70 to “cash” out. A split strategy however, can help couples preserve the biggest chunk of their retirement assets in the early years of retirement. Ideally the lower earner begins to grab social security at age 62, while the higher earner begins collecting a spousal benefit at age 66 and then switches to his or her own benefit at age 70.

This would ensure that couples would withdraw less from their retirement accounts, and with markets going down, front-loading retirement withdrawals is not the safest thing to do.

Read more about social security benefits for married couples at Market Watch.

 

Kenneth G. Marks has been practicing personal injury law since he was admitted to the California Bar in 1981. www.KmarksLaw.com