When it comes to claiming Social Security retirement benefits, the decision seems straightforward if you’re a single adult with no dependents. However, if you’re married or have children, particularly minor or disabled ones, your claiming age can have a significant impact on your family’s benefits.
Understanding how your choices affect your spouse and children is crucial to maximizing your household’s Social Security benefits.
1. How Your Claiming Age Affects Your Spouse
Your claiming age directly influences the size of your own retirement benefits, but it also affects your spouse’s benefits, especially the survivor benefit.
The full retirement age (FRA) for Social Security is 67 for those born in 1960 or later, though it may vary for those born earlier. You must wait until your FRA to claim your full benefit amount.
Claiming Early (Age 62): Claiming benefits early reduces your monthly payments by up to 30%. For instance, a $2,000 monthly benefit could drop to $1,400. This reduction is typically permanent.
Moreover, claiming early reduces the survivor benefits your spouse will receive after you pass away, which could be a concern if your spouse is heavily reliant on Social Security.
Claiming Late (Age 70): Delaying your claim increases your monthly benefit. However, this also means fewer checks overall. The upside is a higher lifetime benefit if you live into your 80s or longer.
One downside is that your spouse cannot apply for a spousal benefit until you sign up for Social Security. If your spouse qualifies for their own benefit, they can claim that in the meantime.
If you’re eligible for both your retirement benefit and a spousal benefit, the Social Security Administration will only pay you the larger of the two. You cannot claim both simultaneously. Therefore, it’s important to discuss the best claiming strategy with your spouse.
2. How Your Children Could Qualify for Benefits on Your Work Record
In addition to benefits for your spouse, Social Security also offers benefits to children of qualifying workers if they are under age 18 (or 19 if still a full-time student in secondary school). Disabled children who were disabled before age 22 can also claim benefits based on your work record.
However, like spouses, children cannot claim on your record until you start receiving Social Security benefits. This could motivate you to apply for benefits earlier than you might have planned. To prove your children’s eligibility, you’ll need to submit documentation such as their birth certificate.
Survivor Benefits: Minor and disabled children may also be eligible for survivor benefits after your death. Keep in mind that if you claim early, it will reduce the survivor benefits they receive, which might impact their financial security.
If you have a shorter life expectancy and believe your family doesn’t need extra financial support right away, delaying your Social Security benefits could result in a larger survivor benefit for your children after you pass away.
Key Considerations for Your Family
Choosing the right claiming age for Social Security is a personal decision that requires balancing your own needs with the needs of your spouse and children. The timing of your claim affects your monthly benefits, the survivor benefits your spouse will receive, and any benefits your children may qualify for.
To ensure that you’re making the best decision for your family’s financial future, it’s essential to discuss your claiming strategy with your spouse. Additionally, if you have any uncertainties about how claiming at different ages might impact your benefits, it’s wise to contact the Social Security Administration (SSA).
You can reach them by phone or schedule an in-person appointment at your local SSA office to get personalized advice.
Additional Social Security Tips
Many retirees overlook important Social Security strategies that could provide a $23,760 bonus over the course of their retirement. By avoiding common mistakes and leveraging specific claiming tactics, you can ensure a more secure financial future for you and your family.
Always be proactive in planning your Social Security claiming strategy and ensure you’re making the most of the benefits available to you.
