(Courtesy of Medicare Done) Many believe that delaying Social Security benefits until age 70 maximizes payouts. However, this strategy can lead to financial loss for some couples. Steve and Rachel are nearing retirement. Steve’s Social Security benefit is $2,800 per month at his full retirement age (FRA) of 66. Rachel’s benefit is $900 per month at her FRA.

Rachel is entitled to a spousal benefit of up to 50% of Steve’s FRA benefit, meaning her benefit would be $1,400 per month (50% of Steve’s $2,800). This is not her benefit plus 50% of Steve’s, but her benefit plus an additional amount to reach $1,400.

If Steve files at his FRA, Rachel could start collecting her spousal benefits. By waiting until 70, Steve’s benefit increases to $3,696 per month and Rachel’s increases slightly to $1,188 per month, totaling $4,884.

By waiting until 70, Steve and Rachel miss out on four years of benefits. From age 66 to 70, they could have received $4,200 per month ($2,800 for Steve and $1,400 for Rachel), totaling $201,600 over four years.

Their combined income at 70 increases to $4,884, but they forfeited $201,600. The monthly increase of $684 would take nearly 25 years to make up for the missed amount.

Contact Yeshaya Jeremias, registered Social Security analyst, today at (248) 919-8193, ext. 2 for a personalized analysis and take control of retirement income planning. Let us help you navigate the complexities of Social Security so you can enjoy a financially secure retirement. Your future deserves a thought out financial strategy and we’re here to help you achieve it.

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