One of the benefits of being single is not having to consider another person's needs in the course of making financial decisions. Want to spend $65,000 on a sports car? There's no one you share a bank account with to tell you no. Want to take a sudden trip? You don't need to ask anyone's permission.
Similarly, being single can work to your advantage in a very big way when it comes to claiming Social Security. That's because when you're single, you only need to consider your personal needs in the course of choosing a filing age.
When you're married and are gearing up to claim Social Security, the stakes can be higher. That's because your filing choice might not only impact you financially, but your spouse as well. And that's why it's essential to talk things through with your partner before signing up to take benefits.
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A decision you really don't want to botch
You may be inclined to file for Social Security early so you can get your money sooner. Or, you may want to delay your filing for the highest monthly benefit you can snag based on your income history. Either way, it's important to consider your spouse's needs before signing up for benefits.
A delayed Social Security filing, for example, could become problematic if your spouse is waiting on you to collect spousal benefits. This is an option commonly exercised by spouses who don't have a work history of their own and therefore aren't eligible for Social Security based on their own earnings.
It may also be an option your spouse wants to pursue if they were a lower earner during their career and you were a higher one. In that case, a spousal benefit might put more money in your partner's pocket than the benefit they're eligible for based on their work record alone.
On the flipside, an early Social Security filing could become problematic if your spouse expects to outlive you by many years. Claiming Social Security ahead of full retirement age means accepting a reduced benefit for life. It also means leaving a spouse with a reduced survivors benefit upon your passing. And if you and your spouse don't have much in the way of combined savings, that could be really problematic.
Have that important conversation
Whether you decide to file for Social Security early, on time, or late, it's important to discuss your options with your spouse and get them on board. It's also essential that you understand what different filing ages mean for each you of individually and collectively.
Getting married means making not just an emotional commitment, but a financial one. And if you've managed to stay married through retirement age, it means you've probably done a pretty good job of communicating with your spouse through the years. Now you just need to put those skills to good use by discussing your Social Security filing options and landing on a choice that's likely to work out well for both of you.
