How to Plan when to Apply for Social Security when You Are Married

Step-by-Step Guide

1. 1

   Step 1: The first thing anybody should do is make sure your earnings record is correct with Social Security.

   The next thing to pay attention to is how Social Security determines your Primary Insurance Amount.
   
   It's important to know that Social Security looks at your annual earnings over your lifetime, indexes them for inflation, and picks the 35 highest years earnings to include in the formula.
   
   The indexed earnings are totaled, divided by 35 and they come up with an average.
   
   Missing years will be filled in with zero's.
   
   So if you or your spouse have missing years...and you have time to add to them or make them up, by all means get started and fill in those missing years! Social Security then applies a formula to your average indexed monthly earnings to determine your Primary Insurance Amount (the amount you would receive at full retirement age).
   
   If you were born between 1943 and 1954 your full retirement age is 66, after 1955 is
   67.
2. 2

   Step 2: What happens when you apply for early benefits?

   Here is what happens, you can apply as early as age
   62.
   
   At age 62 your benefit will only be 75% of what the amount would be if you waited until your full retirement age of 66, at age 63 it would be 80% and so on. , If you apply after you turn 66 you will earn delayed credits of 8% for each year of delay.
   
   So at 67 you would receive 108% of your full retirement amount, 68 / 116%, 69 / 124%, and the last year you can receive delayed credits is age 70 when you will get 132% of your full retirement amount. , They can be changed but they do have the impact of magnifying your choice between early or delayed elections. , Go to www.socialsecurity.gov and click on "estimate your retirement benefits"
   
   check your annual Social Security Statement if they still offer them. , It is especially important for the lower earning spouse.
   
   You see if the higher earning spouse elects early, at age 62 and their benefit is $1400 and the lower earning spouse is at least 62 and their benefit (based on their own record) is $600 they would then qualify for 1/2 of the higher earning spouse's record since it would be higher, $750 instead.
   
   It's important to note there are no delayed credits on spousal benefits after age
   66.
   
   It's also important to note that you can receive Social Security based on an ex-spouse's work record providing the marriage lasted 10 or more years and you are not currently married. , Well, when one spouse dies, the surviving spouse will receive the higher of their two benefits.
   
   So if in the case above, the higher earning spouse was receiving $1400 and the lower earning spouse was receiving $750, the surviving spouse would receive the higher of the two or $14 , Your health status, your life expectancy, your need for income, whether or not you plan to continue working and survivor needs.
   
   It's important to remember Social Security depends on many factors that are all unique to your own personal situation.
   
   As a couple you really need to take into account the above issues.
   
   Obviously, if you can't afford to live right now, you may not have a choice of when to take Social Security.
   
   Your going to take it as soon as possible.
   
   If you have the means you may want to consider delaying your benefits, the difference can be significant especially if one of you has longevity on your side.
   
   The difference between a Baby Boomer born in 1946 taking and early election of benefits and one taking delayed benefits if they waited until age 70 is over 76% higher and that is without COLA increases.
   
   Now if you have longevity on your side, this could mean a lot of money over your lifetime.
3. 3

   Step 3: What happens when you apply after full retirement age?

4. 4

   Step 4: What could magnify your results are COLA's or cost of living adjustments that are included in Social Security.

5. 5

   Step 5: Where can you find an estimate of your benefits?

6. 6

   Step 6: Why are spousal benefits important?

7. 7

   Step 7: Why are Survivor Benefits important to married people?

8. 8

   Step 8: When to apply can be tricky

9. 9

   Step 9: but here are some things to consider.

Detailed Guide

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