Many individuals wonder if it’s possible to receive both retirement benefits simultaneously. The answer is yes, and here’s how it works. Well, it’s possible, yes, but a pack of circumstances must converge in order for an individual to be entitled to both payments at the same time. Take some minutes of your time and read this article, which is easy to understand, actually.
When eligible for both retirement and spouse’s benefits, Social Security ensures that you receive your retirement benefits first. It’s a prioritized system that guarantees you the maximum amount owed to you. If your spouse’s benefit surpasses your retirement benefit, you’ll receive a combination of the two, equaling the higher amount.
Can I Receive Both Social Security Spouse’s Benefits and My Own Retirement Benefits?
The intersection of retirement and spouse’s benefits might seem complex, but it presents an opportunity for financial optimization. By strategically combining these benefits, individuals can unlock a higher total payout, enhancing their financial well-being during retirement. According to the Social Security Administration, the concept of “deemed filing” applies from age 62 to full retirement age and beyond.
When applying for either retirement or spousal benefits, individuals are automatically considered to have filed for the other benefit as well. Exceptions to deemed filing exist, such as for those receiving spousal benefits while entitled to disability or caring for the retired worker’s child.
Now, here’s a catch: applying for Social Security retirement benefits triggers consideration for spousal benefits, with the higher of the two benefits being granted. However, you gotta know the correct timing to activate both spousal and retirement benefits simultaneously. Importantly, spousal benefits are capped at a maximum of 50% of the spouse’s benefits at their full retirement age, emphasizing the need for strategic decision-making based on individual circumstances.
The Best Time to Claim Both Social Security Payments
Determining the optimal time to activate both your individual Social Security benefits and spousal benefits requires careful consideration of a bunch of factors. First, there’s the Full Retirement Age (FRA). Your Full Retirement Age is the age at which you can receive your full Social Security benefits. For those born between 1943 and 1954, the FRA is 66. Delaying benefits until FRA ensures you receive your full entitled amount.
While you can start claiming benefits as early as age 62, doing so comes with a reduction in monthly payments. If financial necessity dictates an early claim, carefully assess the long-term impact on your overall retirement income.
Now, the point of this article: Spousal benefits are based on your spouse’s earnings. If your spouse has a higher earning history, you may be eligible for a spousal benefit, generally amounting to 50% of your spouse’s FRA benefit. Coordinating the timing of your spousal benefit with your own can maximize your combined income.