Employee Education: Social Security
Retirement Services
Should You Wait Until 70 to Claim Social Security?
Did you know that how and when you claim Social Security is different depending on your marital status? There are a series of rules you must meet to claim your benefits and they are slightly different whether you are married, single, widowed or divorced.
If you wait until age 70 to claim Social Security, you will be entitled to the largest decision. It is important to build a complete retirement income plan that considers all. Our team can help you plan for retirement and make the best decision for when circumstances and create a personalized plan for you.
CLAIMING SOCIAL SECURITY IF YOU ARE:
It’s tempting to claim at 62, but is that the best decision for you and your spouse?
If you’re the higher-earning spouse, your age when you claim can lower or raise your monthly payments – and your spouse’s benefit:
- Claim at age 62 and get a lot less – 25% to 30% less.
- Wait until age 70 and get a lot more – 24% to 32% more.
Your lower-earning spouse will receive your payments if you die first so, protecting them is a key consideration before you claim.
Benefits are based on your own work history. You highest 35 years of earnings go into the calculation of your monthly benefit payments. If your spouse’s highest benefit is the “spousal” benefit, he or she will receive a maximum of 50% of your Full Retirement Age (FRA) benefit.
Think twice about when to stop working and when to claim. Your decisions may well affect your spouse, too.
First, make sure the Social Security Administration (SSA) classifies you as “Single”.
To claim as a “single” individual, the SSA requires the following
statements to be true:
- You are not currently married.
- You were never widowed.
- If divorced, your marriage lasted fewer than 10 years.
If you cannot claim on someone else’s work record, your benefit is calculated on your highest 35 years of earnings over your career and the age you claim.
Your age and any minor children will be key factors.
The age you become a surviving spouse determines the benefit:
- Age 60 is the earliest to claim survivor spouse retirement benefits.
- Any age under 60 if raising your deceased spouse’s or ex-spouse’s minor children to receive family benefits.
To claim survivor spouse retirement benefits, you must have been currently married to the deceased or married for at least 10 consecutive years to an ex-spouse.
For family benefits, generally, the funeral director will contact the Social Security Administration (SSA) to start the benefits process. Calculating family benefits for you and any minor children is complicated. You will need to talk directly with the SSA about your personal situation.
You might get more by claiming on your ex-spouse.
There are a series of rules you must meet to claim on your ex-spouse:
- The marriage lasted 10 consecutive years or longer.
- The divorce was at least 2 years ago, or your ex is already claiming Social Security.
- You have not remarried.
- Both you and your ex are at least age 62.
And, most importantly, you are the lower-wage earner. You can only claim on your ex if it will boost your monthly benefit.
The maximum amount you can receive on your ex’s work history is 50% of his/her full benefit. You must reach your Full Retirement Age (generally between 6 and 67) to receive that amount.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
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