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What\u0027s a simple strategy for married couples looking to optimize their Social Security benefits? Ever since Congress changed the rules in late 2015 that apply to married couples, many people have been asking for a simple rule of thumb. So here it is:Find an online Social Security calculator or qualified retirement advisor who can help you figure the best strategy. For example, Financial Engines, the large retirement advisory firm, recently updated its free, online Social Security calculator to accommodate the new rules. In each of these situations, you can input different combinations of poor, Canada Goose sale average and good health for each partner, as well as different levels of wages earned over the years. This conclusion holds true whether the breadwinner is the canada goose coats husband or the wife, and in most situations regarding the expected health status of either partner. This conclusion is particularly appropriate for a common situation: The husband is a few years older than the wife and has been the primary breadwinner. The only time this combination resulted in a recommendation that the husband canada goose coats on sale starts his earned benefit before age 70 was when both partners expected to live much shorter than average life expectancies to age 78 for women and age 76 for men. Social Security calls this increase \”delayed retirement credits.\” These credits are more generous than factors that would be based on pure actuarial principles. Spouses in poor health may want to start their benefits early, whereas spouses in good health may want to delay their benefit. Note that this conclusion applies only to Social Security benefits the spouse has earned by working. Suppose both the husband and wife have worked for most of their lives, and each has earned a significant Social Security income on their own earnings record. When the wife attains age 66 (her full retirement age), she starts her earned benefit. Yet that\u0027s the age at which many people do start collecting. It may be possible that circumstances exist when both partners starting to claim benefits at age 62 is the optimal strategy, but it\u0027s likely quite rare. Note that delaying Social Security benefits is often the optimal financial strategy and usually requires you to live on other resources or work while you\u0027re delaying Social Security. Unfortunately, many people don\u0027t have substantial savings and can\u0027t or won\u0027t work. The best way to determine the best Canada Goose Outlet strategy for you, given your unique circumstances, is to let a computer work through all the possible combinations.”}

What’s a simple strategy for married couples looking to optimize their Social Security https://www.canadagooseisverige.com benefits? Ever since Congress changed the rules in late 2015 that apply to married couples, many people have been asking for a simple rule of thumb. So here it is:

canada goose Find an online Social Security calculator or qualified retirement advisor who can help you figure the best strategy. The fact is, no one easy rule applies in all situations. canada goose

canada goose coats However, popular Social Security calculators can make some general conclusions that apply in many situations. For example, Financial Engines, the large retirement advisory firm, recently updated its free, online Social Security calculator to accommodate the new rules. It’s easy to use: Answer a few questions about yourself and your spouse, and it offers recommendations for optimizing your benefits. canada goose coats

The yardstick it uses to determine an optimal strategy is to maximize the expected payout from Social Security to you over your lifetime and the expected lifetime payout to your surviving spouse. It bases its recommendations on estimates of the Social Security benefit you and your spouse have earned by working, as well as your input on whether you and your spouse expect to live to average life expectancies, or shorter or longer than the averages.

canada goose uk outlet You can gain general insights into optimal strategies by running different situations through the Financial Engines calculator, such as one in which the husband is older than his wife, both partners are the same age or the wife is older than her husband. In each of these situations, you can input different combinations of poor, average and good health for each partner, as well as different levels of wages earned over the years. canada goose uk outlet

Let’s see how these combinations can give you some general insights.

Generally, the primary breadwinner should delay benefits

Canada Goose sale When one partner has been the primary breadwinner, it usually makes the most sense for that person to delay starting Social Security income, often to age 70 if possible. This conclusion canadian goose jacket holds true canada goose store whether the breadwinner is the husband or the wife, and in most situations regarding the expected health status of either partner. Canada Goose sale

This conclusion is particularly appropriate for a common situation: The husband is a few years older than the wife and has been the primary breadwinner. The only time this combination resulted in a recommendation that the husband starts his earned benefit before age 70 was when both partners expected to live much shorter than average life canada goose clearance sale expectancies to age 78 for women canada goose deals and age 76 for men. Even then, the program recommended that the husband start at age 68.

canada goose clearance sale Delaying is often a beneficial strategy for canada goose outlet two reasons: canada goose clearance sale

uk canada goose black friday sale canada goose Social Security increases your benefit for each month between age 62 and 70 that you delay the start of your earned benefit. Social Security calls this increase “delayed retirement credits.” These credits are more generous than factors that would be based on pure actuarial principles. Spouses in poor health canada goose may want to start their benefits early, whereas spouses in good health may want to delay their benefit. uk canada goose

uk canada goose outlet Note that this conclusion applies only to Social Security benefits the spouse has earned by working. Under the new rules, in most cases, the Social Security benefit for a nonworking spouse can’t be started until the working spouse starts his or her earned benefit. uk canada goose outlet

If you attained age 62 in 2015 or before, you’re in luck

cheap Canada Goose If you attained age 62 in 2015 or before and haven’t yet started your Social Security income, you might benefit from the grandfathering rules regarding restricted application that were Canada Goose Parka included in the recent law changes. cheap Canada Goose

buy canada goose canada goose clearance jacket cheap Here’s how this can work in the common situation cited above in which the husband is older than his wife and is also the primary breadwinner. buy canada goose jacket cheap

Canada Goose online Suppose both the husband and wife have worked for most of their lives, and each has earned a significant Social Security income on their own earnings record. When the wife attains age 66 (her full retirement age), she starts her earned benefit. At that time, the husband can file a restricted application to start just his spousal benefit based on the wife’s benefit, while delaying the start of his earned benefit to age 70 to receive the delayed retirement credits. Canada Goose online

buy canada goose jacket Note that this only works if the husband has attained age 66. In certain circumstances, this strategy can also work in reverse, where the husband starts buy canada goose jacket his earned benefit at age 66 and the wife files for restricted application while delaying her earned benefit. buy canada goose jacket

cheap canada goose uk Does it ever pay for both partners to start collecting as soon as possible? cheap canada goose uk

For the various combinations tested with the Financial Engines calculator, there were no circumstances where it was optimal for both partners to start their Social Security benefits as soon as possible at age 62. Yet that’s the age at which many people do start collecting. It may be possible that circumstances exist when both partners starting to claim benefits at age 62 is the optimal strategy, but it’s likely quite rare.

Canada Goose Jackets Note that delaying Social Security benefits is often the optimal financial strategy and usually requires you to live on other resources or work while you’re delaying Social Security. Unfortunately, many people don’t have substantial savings and can’t or won’t work. In such situations, they might have no choice but to start Social Security benefits early, even if that’s not the optimal financial strategy. Canada Goose Jackets

Canada Goose Online Financial Engines estimates that married couples face more than 8,000 possible combinations of Social Security claiming strategies. The best way to determine the best strategy for you, given your unique circumstances, is to let a computer work through cheap Canada Goose all the possible combinations. Canada Goose Canada Goose Jackets Online

View all articles by Steve Vernon on CBS MoneyWatch Vernon helped large Canada Goose online employers design and manage their retirement programs for more than 35 years as a consulting actuary. Now he’s a research scholar for the Stanford Center on Longevity, where he helps collect, direct and disseminate research that will improve the financial security of seniors.