Married couples have more options when it comes to maximizing Social Security income payments and overall benefits than single people do. Those who are divorced may even have the option of collecting spousal benefits. However if you are single and have never been married it is important that you learn your social security filing options.
According to a 2015 article written in USA Today titled Social Security Strategies for Singles, single people do seem to get shorted when it comes time to file for Social Security payments. This is not intentional, it is merely because there are less combinations of ways that single people can choose to file.
There are 3 basic Social Security filing options for a single person:
- Choose between early retirement, full retirement age, or delaying payments: The longer you wait between age 62 to age 70 to file for Social Security, the higher your monthly payments should be. You get the most benefits by delaying until your full retirement age, but can keep increasing your payments up to age 70 if you choose to.
- You may choose to continue working: Social Security uses your top 35 years of earning income, and if you can replace one of those years with a new year that had more income you might increase your benefits. The 35 years are adjusted for inflation.
- File and Suspend: This is a tactic as more commonly utilized by married people. In this scenario the prime earner needs to file to allow a spouse to collect spousal benefits, but the prime earner does not need to collect yet. Some singles may have dependents other than a spouse that may make this tactic worth considering. Other dependents, like children, may be eligible for dependent benefits that are similar to spousal benefits.
At Trusted Senior Specialists we help many plan for a comfortable retirement. We can assist with finding the right health insurance, life insurance, and retirement income plans to fit your needs.
Call us today for your peace of mind tomorrow.