3 social security strategies for married couples retiring early
3 social security strategies for married couples retiring early

3 social security strategies for married couples retiring early

Early retirement is a goal many married couples work towards together. If you and your partner are on the verge of leaving the workforce early, it’s an exciting milestone to celebrate.

At the same time, it is important that you and your spouse work together to come up with the best plan for making claims. Social Security. Here are a few strategies you can consider using.

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Get the higher wage earner to claim social security early

If you are retiring early but need a great social security payday to keep up with your expenses, you may want to get the more deserving spouse to claim social security as early as possible. You can sign up for benefits from kl age 62.

Although applying for benefits before full retirement age (OFF) could result in a significant reduction in the monthly benefits. The benefit of going this route is getting more money to live on right away. If you want to maximize your first few years of early retirement while your health and energy levels are strong, this may be the best option – especially since you can also let the benefits of the lower-earning spouse continue to grow.

Get the lower wage earner to demand social security early

You may only need a modest Social Security paycheck to keep up with your bills early in retirement. And if your financial needs are minimal, it may pay to get the lower-earning spouse to claim benefits early. That way, the higher benefit you are entitled to can grow even more.

Delay social security together and live off savings or other sources of income

Many people who end up in a position to retire early do so because they have accumulated a fair amount savings. If you are in that boat, you and your spouse may not need to sign up for Social Security at all at the start of your early retirement. And if you can wait to claim benefits until OFF or even longer, you will lock in a higher series of payments for life.

Let’s say you sit on a nest egg worth $ 2 million. You may be able to make do with withdrawals from that plan alone for several years before worrying about supplementing your income with Social Security checks.

Even if your nest egg is not large, you may still have other sources of income at your disposal. Let’s say you own one or two rental homes. If these homes are mortgage-free and the monthly rent checks you collect are enough to maintain these properties and cover your own bills, you may not need to rush to file a Social Security application at all.

Work together to make a plan

No matter when you and your spouse decide to apply for Social Security, it is important to make that decision together. This applies regardless of whether you retire early or not.

There are both pros and cons to requiring social security at different ages. The key is to weigh these options together and find out what makes sense to you as a couple, keeping things like your respective ages, health status and life expectancy in mind.

It also pays to have those conversations well in advance of retirement. That way, as that milestone approaches, you will be able to end your career early with more confidence.

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