Claiming Social Security at age 70? You will lose a lot of time in this situation | Smart Change: Personal Finance
There’s a reason older people often delay getting Social Security until they’re 70. You are entitled to what the government considers your “full” monthly benefit based on your full retirement age earnings history (FRA), which anyone who has not yet retired can either be 66, 67, or somewhere in between, depending on your birth year. But for every month after your FRA ends you defer to claim Social Security, you’ll get a deferred retirement credit that eventually gives your monthly benefits a permanent boost.
Once you reach the age of 70, you hit your limit when it comes to late retirement credits. Waiting no longer increases the volume of verification of your benefits. This is why 70 is generally considered the latest age to be introduced. And if you think you’ll live a reasonably long life, you may eventually receive enough of those larger monthly checks you get financially from claiming benefits at 70 and no sooner.
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But while this makes sense to many people, there is one scenario in which it doesn’t explicitly push. And if you delay registering in this case, you may lose money without a valid reason.
Marital benefits cannot grow
Most people claim Social Security based on their earnings history. If you go this route, you can get deferred retirement credits to postpone the day you apply for Social Security. But if you are claiming a marital benefit, the rules are different.
Some people don’t earn enough work credits in their lifetime to qualify for Social Security on their own. But if you are married to someone who qualifies for Social Security, you can claim a spousal benefit based on their earnings history once they file for benefits themselves. You can also claim spousal benefits based on your ex-spouse’s history, provided you have been married to that person for 10 years or more.
Spousal benefits are 50% of what your current or former spouse collects, provided you wait until your FRA registers for it. But there’s one thing you don’t want to do if you’re claiming spousal benefits and that’s delay past this point.
the reason? You can only increase your monthly allowance in this way when you claim it against your earnings history. You can’t do that with marital benefits.
So, let’s say your spouse collects $2,000 a month in Social Security, and you sign up for your FRA’s Spouse Benefit of 67. You’ll get checks for $1,000 a month. Waiting to claim until you’re 70 won’t boost these payments, so if you delay your filing, you’ll lose years of receiving money you would otherwise have been entitled to.
Know the rules
Deciding when to claim Social Security can be difficult in many cases. But when you talk about marital benefits, it’s not that difficult because your timing doesn’t make much difference.
Whether you are applying for a spousal benefit or not, it is important to know the rules for claiming your retirement benefits. Reading about Social Security can help you find ways to get the most out of the program, so spend some time learning more about its ins and outs long before you have to make your decisions.
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