Retirement is an exciting milestone in life but requires loads of planning. Long before you retire, you'll need to be able to answer questions like how much you should have saved, the age at which you expect to retire, and how many years your savings will need to last.
One other important factor to consider is how Social Security will fit into your retirement plans. A whopping 60% of current retirees say their benefits are a major source of income, according to a 2024 poll from Gallup, so it's wise to start creating a strategy sooner rather than later.
Before you and your spouse retire, it's a good idea to have a conversation around what types of benefits you'll each be eligible for, the age at which you expect to file, and the type of contingency plan you'll have if one of you passes away.
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1. Do you or your spouse qualify for spousal benefits?
Retirement benefits are the most common type of Social Security, and you generally qualify for these once you've worked and paid taxes for at least 10 years. But married retirees -- particularly those who have little-to-no work histories -- are also sometimes eligible for spousal benefits.
To qualify for spousal benefits, you must be married to someone who's entitled to either retirement or disability Social Security. You'll generally need to be at least 62 years old to file, but you can often file at any age if you're caring for a child who is either under age 16 or disabled.
The most you can receive in spousal benefits is 50% of your partner's full benefit amount, or the amount they'll collect at their full retirement age. If you're also entitled to retirement benefits based on your own work history, you'll only receive the higher of the two amounts -- not both.
The average spouse of a retired worker collects around $909 per month in benefits, according to November 2024 data from the Social Security Administration, so if you qualify for spousal benefits, it's wise to take full advantage of them.
2. At what age will you begin claiming?
The age at which you begin taking Social Security is one of the most important retirement decisions you'll make, as it will affect your monthly income for the rest of your life.
Filing before your full retirement age will permanently reduce your payments, and your checks could be slashed by up to 30% by filing as early as possible at age 62. If you're collecting retirement benefits, delaying past your FRA up to age 70 will earn you a bonus of at least 24% on top of your full payments.
Having a plan for when you and your spouse will file for Social Security can help maximize your lifetime income. You may decide to file at the same time, regardless of your ages. Or you may plan on having one person file early while the other delays. Maybe you'll both file at your full retirement ages as a compromise between claiming early and delaying.
Regardless of your decision, having this conversation now will make it easier to plan for your future. When you both know how your ages will affect your benefit amounts, you can ensure you're saving accordingly.
3. How will survivors benefits affect your plans?
While nobody wants to think about their spouse potentially passing away, it can be wise to consider how you'll both manage financially in that unthinkable scenario.
If you're receiving spousal benefits in retirement, you'll no longer qualify for them if your spouse passes away. However, you may qualify for survivors benefits, instead. Widows and widowers can receive up to 100% of their spouse's benefit amount, which can go a long way for surviving partners.
Again, nobody necessarily wants to start making these plans, but having at least an idea of how your finances might change after a spouse's death can save you some stress down the road.
Social Security is an integral part of retirement for many Americans, and strategizing with your spouse can help you make the most of it. By having these conversations now, you can ensure you're covering all your bases heading into retirement.
