subject: Boosting Spousal Benefits From Social Security [print this page] Married seniors can further augment their retirement income by boosting spousal benefits from Social Security. If you're one of these seniors, you'll find that with a few steps, you can increase your retirement income.
An obvious strategy to increase your income from spousal benefits is to delay taking Social Security payments until you reach the age of 70. If your spouse is in good physical shape, you should really consider delaying distributions, as each year postponed gives you extra income of about 7% to the total, which can add up considerably.
One relatively unknown strategy would be the Social Security "do-over." This can be accomplished even if you've withdrawn your benefits earlier than normal retirement age, and regret the move. Why? Most of us know that you'll get bigger monthly Social Security paychecks if you wait longer until you collect.
The "do-over" starts when you pay back everything you received in Supplemental Security Income, or SSI, although it's good to know that you don't have to shell out extra for penalties or interest. You'll need to do the research and calculate how long your life span is to identify if this move will work for you or not. However, the deal can pay off well if one person in your marriage lives a long life.
Another obscure strategy would be what's called the "File and Suspend." This works best if one person makes a lot more money than the partner. Assume that you're the one who's the family breadwinner.
You'll have to file for Social Security once you reach the age that qualifies you for full retirement benefits, and after that, your partner files to get spousal benefits. Then, you'll file for benefits suspension while your partner keeps receiving benefits. After some years, you'll start receiving much bigger paychecks because the money in your account had more time to grow.
Thinking and acting strategically can help you compound your retirement income, especially when it comes to your retirement accounts. With Social Security, using your spousal benefits to the maximum is just one way to make more money that you expected to receive from the retirement system.
