Get What's Yours

3 ideas

1. Delaying claims buys inflation-indexed longevity insurance

   Each year a worker delays claiming Social Security past full retirement age up to 70 permanently raises the monthly benefit by 8% in delayed retirement credits, and the increase is inflation-adjusted and paid for life. Because the risk that matters most is outliving your savings, waiting is the cheapest way to buy guaranteed, inflation-protected annuity income. An early claim looks like 'getting yours' sooner but usually lowers expected lifetime and survivor income.

2. Coordinate spousal claims around the survivor benefit

   Married couples should plan claiming as a joint decision, not two separate ones. When one spouse dies, the survivor keeps whichever of the two benefits is larger, so the higher earner's delay raises the income of whoever lives longest. A common pattern is for the lower earner to claim earlier while the higher earner waits until 70, which maximizes the survivor benefit.

3. File-and-suspend and restricted application strategies

   Before the Bipartisan Budget Act of 2015, a worker could file for benefits and immediately suspend them so a spouse could collect spousal benefits while the worker's own benefit kept growing. Separately, a restricted application let someone collect only a spousal benefit while their own benefit accrued delayed credits.

Save and mark ideas in the app