For many Americans, Social Security serves as a financial lifeline during retirement. And whether you're single or married, those benefits may provide a large chunk of your income later in life. There are certain Social Security rules that married couples in particular need to be aware of. Here are three that may help you better plan for your retirement. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor.  ...

Beginning to receive your Social Security benefits can be an overwhelming part of the retirement planning process. There are a multitude of nuances, rules and regulations, often tucked into the fine print, so to speak. It’s easy to make choices, or fail to, that can harm your Social Security checks in big and small ways. Here are some common mistakes retirees make with their Social Security checks. Know them, so you can hopefully avoid them. Taking Benefits Too Early Many retirees decide to start colle ...

Core Insights - The article discusses the complexities of planning for retirement, emphasizing the need for individuals to assess their financial readiness and understand various factors that influence retirement timing. Group 1: Financial Readiness - Sufficient resources are crucial for retirement, as Social Security only replaces about 40% of income, necessitating additional savings or income sources to cover the remaining expenses [4] - Individuals should evaluate their life expectancy, as many may live longer than anticipated, impacting the amount of savings needed for retirement [5][6] Group 2: Social Security Considerations - Understanding how Social Security treats earned income is essential, especially for those retiring before full retirement age (67), as earnings above $24,480 will result in a reduction of benefits [7] - Any withheld benefits due to early retirement will be recalculated and added back once the individual reaches full retirement age [8] Group 3: Spousal Benefits - For married individuals, it is important to plan for spousal benefits, as a spouse can claim up to 50% of the primary earner's benefit at full retirement age, which can be affected by early retirement decisions [9][10]

Core Insights - Social Security has specific rules that can impact couples, including spousal benefits and eligibility criteria [1] Group 1: Spousal Benefits - Spousal benefits can be claimed even if one partner has no earnings history, with a maximum value of 50% of the spouse's benefit at their full retirement age [3][4] - For example, if one spouse is eligible for $2,000 a month, the other can receive a maximum of $1,000 a month in spousal benefits at their full retirement age [5] - Claiming spousal benefits early results in a reduction, and the maximum benefit remains capped at $1,000 a month regardless of the other spouse's delayed retirement credits [6] Group 2: Claiming Process - A spouse cannot claim spousal benefits until the other spouse has signed up for Social Security [7] - The value of spousal benefits can increase if they transition to survivor benefits after the spouse's passing [8]

Core Insights - Social Security is a crucial income source for millions of retirees, making it essential to understand its workings as the new year approaches Group 1: Spousal Benefits - Individuals can collect Social Security benefits by accumulating 40 work credits, which can be earned through working and paying taxes on wages [3] - Spousal benefits are available for individuals married to someone eligible for Social Security, allowing them to receive benefits even if they have never worked [4] - Spousal benefits can be claimed starting at age 62, but they will be reduced if claimed before reaching full retirement age [7] Group 2: Claiming and Delaying Benefits - Married individuals cannot claim spousal benefits until their spouse has signed up for Social Security, while divorced individuals can claim without waiting for their ex-spouse [7] - Full retirement age is 67 for those born in 1960 or later, and benefits can be delayed past this age for increased payouts, with the maximum delay incentive ending at age 70 [8]

Core Insights - The Social Security Administration distributes benefits to nearly 74 million individuals each month, with payment schedules primarily based on beneficiaries' birth dates [1][7]. Payment Schedule - Supplemental Security Income (SSI) payments are issued at the start of each month, with adjustments made if the month begins on a weekend or holiday [3]. - In December, the payment schedule is as follows: - Dec. 1: SSI payments for qualified individuals [8] - Dec. 3: Retirement benefits for those who began receiving them before May 1997 [8] - Dec. 10: Retirement, spousal, and survivor benefits for those born between the 1st and 10th of any month [8] - Dec. 17: Benefits for individuals with birthdays between the 11th and 20th [8] - Dec. 24: Benefits for those with birthdays between the 21st and 31st [8] - Dec. 31: SSI payments for qualified individuals for January [8] Importance of Payment Timing - Understanding the payment schedule is crucial for Social Security beneficiaries, as they rely on fixed incomes to manage their budgets and financial obligations [4].

Core Insights - Social Security is a significant income source for American retirees, with the earliest claiming age set at 62 and full retirement age at 67 for those born in 1960 or later [1][4] Group 1: Social Security Benefits - Social Security benefits will not replace an entire paycheck, typically covering about 40% of an average paycheck in retirement, assuming no broad cuts to benefits [3] - The program is facing a financial shortfall, which may lead to inevitable benefit cuts if not addressed by lawmakers, emphasizing the need for additional retirement savings [4] Group 2: Eligibility and Spousal Benefits - Individuals may still be eligible for Social Security benefits even if they have never worked, particularly through spousal benefits if married to someone eligible [5] - Spousal benefits can reach a maximum of 50% of the eligible spouse's benefit at their full retirement age, but these benefits cannot be increased by delaying the claim [6]

Core Points - Social Security primarily provides retirement benefits, intended to replace approximately 40% of income for retirees [1] - Additional benefits include spousal benefits, which can be crucial for individuals who earned less than their spouses during their careers [2] Spousal Benefits - Spousal benefits are available to married individuals and can also be claimed after a divorce if the marriage lasted at least 10 years [5] - Individuals who are divorced have an advantage in claiming spousal benefits, as they do not need to wait for their ex-spouse to claim their own benefits [7][9] - Married individuals must wait until their higher-earning spouse claims their retirement benefits before they can start receiving spousal benefits [8][10]

Core Insights - Many older Americans rely on Social Security for a financially comfortable retirement, as it is a crucial income source that is guaranteed and inflation-protected [1] Group 1: Maximizing Social Security Benefits - Delaying the claim of Social Security benefits until age 70 can guarantee a larger monthly check, with full retirement age (FRA) for those born in 1960 or later being 67 [4] - Each month of delay beyond FRA earns delayed retirement credits, increasing benefits by 2/3 of 1% per month, potentially leading to a 24% increase in monthly benefits if FRA is 67 [5][6] Group 2: Limitations on Delayed Benefits - Not all individuals can take advantage of delaying benefits; those planning to collect spousal benefits cannot earn delayed retirement credits, as they are capped at 50% of the primary earner's benefit [7][8] - Financial constraints may prevent some individuals from delaying their claims, making it essential to consider personal circumstances when deciding [8][9]