Wealth Management Blog | WrapManager | Social Security Benefits (2)

Social Security and Restricted Application for Spousal Benefits

Posted by Gabriel Burczyk | Founder & CEO

November 2, 2013

In our previous post titled “Maximize Social Security with the File and Suspend Strategy,” we showed you a strategy that married couples might use to increase their social security retirement benefits. Not too many retirees are aware that strategies like this exist to increase social security income¹, and it goes to show that with the right type of planning, people can get more out of retirement than they might think.

There is another strategy known as the Restricted Application for Spousal Benefits that married couples also may use to increase the size of their social security checks. This method allows for one spouse to start collecting spousal benefits, while simultaneously having their retirement benefits grow through the accumulation of delayed retirement credits. Below we’ll explain how this works.

Maximize Social Security with “File and Suspend” Strategy

September 26, 2013

The “file and suspend” strategy can potentially boost your household income immediately, while also allowing for future increases to your social security income. The strategy works well for couples in which one spouse worked (or still works) full-time, and the other spouse didn’t work or only worked for a limited time with limited income. If your benefit is more than double your spouse’s, this strategy could effectively work as part of your comprehensive financial plan.1 How to Apply the File and Suspend Strategy To utilize the file and suspend strategy, you apply for retirement benefits at the full retirement age (age 66 if you were born within 1943-1954)2, allowing your spouse to collect their benefits based on your earnings record. Then, you immediately suspend your own benefits and delay claiming them until they are worth more at an older age. Your benefits will increase by an additional 8% for each year you delay collecting beyond your normal retirement age, up until you turn age 70. [+] Read More

Social Security Spousal Benefits: The Basics

August 30, 2013

In our previous post on Social Security retirement benefits, we looked at a few factors that might determine when someone should start receiving Social Security benefits. One of those factors centered on a spouse’s age and potential benefit, which we’ll examine a bit more closely in this piece. For the questions and scenarios below, we’ll assume the full retirement age is 66. You can determine what your full retirement age is using the Social Security Administration’s table here. What is a Social Security Spousal Benefit? A spousal benefit is equal to 50% of your spouse’s Social Security retirement benefit, as calculated at their full retirement age. If your social security retirement benefit based on your earnings record is greater than the spousal benefit, you will get paid the higher amount when filing for Social Security. [+] Read More

When Should I Start Taking Social Security?

July 29, 2013

Knowing when to take Social Security is dependent on a number of variables, all of which are unique to you and your financial plan. Ultimately, it is a financial choice you make, and it’s a very important one. At WrapManager, our Wealth Managers create a comprehensive investment plan for our clients, so that we intimately understand all of the variables that are important to meeting their family’s goals. Many people come to us wondering: should I start early and receive Social Security retirement benefits as soon as I’m eligible, or is it better to wait so you can receive a higher monthly benefit? Source: Social Security Administration Below, we’ve outlined a few guiding questions designed to help you think smarter about when to start taking your Social Security retirement benefits. We’d encourage you to discuss with your family and one of our Wealth Managers. [+] Read More

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Social Security and Restricted Application for Spousal Benefits

Maximize Social Security with “File and Suspend” Strategy

Social Security Spousal Benefits: The Basics

When Should I Start Taking Social Security?

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