subject: The spousal benefits and social security planning for the married couples [print this page] The spousal benefits and social security planning for the married couples
The economic crises through which the Americans have lived have made them bold enough to think about better strategies in managing their finances. The toughness of debts and the hassles of managing the same through the debt consolidation companies have left them nowhere. Therefore, the consumers would like to try every single effort in making their finances better including the social security benefits. Ideally, these benefits will prove as the major source of funds after retirement. In order to move ahead with social security benefits, it is important that we should know about the following terms:
Spousal Benefits: It is meant to work out an option for the spouse who is earning less or the one who is earning more. The claim can be for oneself and also for the other spouse to a maximum of 50%. In order to be eligible to receive the benefits, the spouse who is earning more should start collecting the benefits. On the other hand, if the benefits have been taken for the spouse who has not yet reached the age of retirement, the amount of benefits may get reduced.
Surviving Spouse: The spouse who has lived through the age of retirement will be receiving the full benefits of retirement on attaining that age. If one of the spouses has a congruent retirement plan, the other spouse is no more; the surviving spouse will get more benefits. They will then get their own advantage, along with the differential between their own benefits and those of the deceased.
If a spouse will wait longer until the age of retirement to collect the benefits, the amount will be greater. For the best planned strategy of receiving the social security benefits, the age inconsistency is what will matter the most. For those couples with a greater age difference, waiting to get the benefits may not be a feasible option. Another basis point for collecting the benefits is to consider other options in cases when one of the spouses cannot wait for long to receive the additional benefits. One of the better known strategies of the social security is to collect the full benefits before the retirement age is attained which is referred to as the Voluntary Suspension. The spouse, who is earning more benefits can avail this option and the other spouse may continue to collect the benefits. It will eventually bring in more benefits with the pension amount of the other growing larger. Another way of receiving the benefits is to wait until one of the spouses has attained the age of 70 while the other one is already prepared to receive the benefits. The one who is eligible can start collecting the benefits. Now, when the other spouse will attain the age of 70, he may transform the social security amount into higher benefits, and his spouse can file for the spousal benefits. These are just a few ways to increase the benefits of social security. Ideally, the couples should explore all the opportunities that can help them to achieve the same.
In addition to these possibilities, there are other factors such as life expectancy, financial needs and the amount of money saved for the purpose of retirement. These factors should definitely be taken into account before deciding on the best strategies of the social security benefits.
