Social security in the US has been offering support to the residents for quite a long time. While the support has ensured to help the citizens during dire need and uncertain periods, social security planning is even more critical. The main benefit of social security is linked to retirement, but the benefit to the spouse cannot be left out in case of any mishap.
Social security benefit for spouse
It’s emotionally difficult to lose a partner at any age. Moreover, it has the potential to hit the economy hard. Life insurance can provide peace of mind for young couples while also mitigating the economic effect of losing the household’s primary breadwinner or caregiver.
Employing a wise Social Security plan can protect the spouse left behind for older couples concluding their careers.
Change in the family dynamics
Women have made significant advances in the workplace and are increasingly becoming the primary breadwinners in their households. But, unfortunately, motherhood sometimes entails lowering work hours or quitting the profession entirely. This is one reason that negatively influences career advancement and long-term wages.
As a result, men are more likely to have greater lifetime earnings. This is also why men are eligible for larger Social Security payments. This provides an essential lever for a husband approaching retirement to improve his wife’s level of life and retirement security if he dies first, as per Lowell Sun.
The benefit of delayed social security benefits
Between the ages of 62 and 70, a person can start receiving Social Security retirement payments. At full retirement age, you can collect 100% of your benefit. Before reaching full retirement age, collecting benefits decreases the benefit by around 7% per year, but waiting until age 70 raises it by about 8% per year.
If the higher earner dies first, an early claim by the higher earner decreases the survivor benefit payable to the remaining spouse.
In basic terms, people who file later will earn larger monthly checks to receive benefits for a shorter period. This benefit lasts as long as one of the spouses is alive.