My wife can claim $900 at 62. Should she take it now — or wait for her spousal benefit?
“She was a teacher at a school district, so didn’t put much into Social Security.”
When considering Social Security benefits, timing is crucial, especially for those with multiple benefit options. In this case, the wife's situation is complicated by her limited contributions to Social Security, having worked as a teacher in a school district. This likely means her own benefit amount is relatively low, making her eligible for a spousal benefit.
The decision to claim her own benefit of $900 at age 62 or wait for a potential spousal benefit depends on several factors, including her husband's benefit amount, her own life expectancy, and their overall financial situation. If her husband's benefit amount is significantly higher, it might make sense for her to wait and claim a spousal benefit, which could provide a higher monthly payment. However, claiming her own benefit now would provide immediate income, which might be essential for their financial stability.
To watch next: The couple should consider running the numbers to determine which option provides the most financial security for their retirement. They should also keep in mind that delaying the start of benefits can result in an 8% increase in the monthly payment for each year they wait past their full retirement age, up to age 70. Additionally, they may want to consider factors like life expectancy, health insurance, and other sources of income when making their decision.
Originally reported by marketwatch.com. CurrencyNews adds analysis for finance & markets readers.