In the GOBankingRates article on Social Security spousal benefits, The Humphreys Group Director of Financial Planning, Lexi Olian, makes a case for waiting until retirement age or later to claim these benefits. She also notes that this choice can significantly affect the spouse. “Your benefits will increase by 8% for every year that you delay claiming benefits after full retirement age, up until age 70. This is essentially a risk-free return of 8%,” says Lexi. She informs readers about the risks of claiming benefits too soon, “On the other hand, claiming before full retirement age will cause your benefits to be reduced by over 6% a year throughout your lifetime. The reduction will also apply to your benefit as a surviving spouse. The cumulative impact will be substantial.”
The article details the importance of timing when it comes to applying for social security benefits, which is why discussing these plans with a financial advisor is so crucial. These decisions are especially significant when it comes to spousal support, as “the lower-earning spouse could be entitled to significant extra benefits based on the earnings of his or her partner.” The experts consulted in this article, Lexi Olian among them, are able to conclude that delaying benefits until at least age 70, if possible, is best practice for receiving the highest spousal benefit. The article encourages a slowed-down process; pausing and weighing your options before moving too quickly to claim these benefits as soon as they are available at age 62.
GOBankingRates is a personal finance site that empowers their audience to “live richer” in their bank account, career, personal goal fulfillment, and how they explore the world. They offer articles and videos designed to make learning about money and managing finances more enjoyable and easier to understand.
The Humphreys Group aims to provide individualized expertise to a wide range of clients, particularly women in transition throughout various stages of life. The process of applying for Social Security benefits is part of an integral life transition. This is where the professional opinion of Humphreys Group financial planners comes in to provide guidance and assist in laying out options.
