My wife’s Social Security is just $900. Should she claim her spousal benefit at 62 or wait?
“She was a teacher at a school district, so didn’t put much into Social Security.”
The decision of when to claim spousal benefits can be a complex one, especially when considering the impact on overall retirement income. In this case, the wife's Social Security benefit is relatively low at $900, and she's considering claiming a spousal benefit at 62 or waiting.
The fact that she didn't contribute much to Social Security due to her employment as a teacher likely means she won't have a significant standalone benefit to consider. This makes the spousal benefit an important consideration for her overall retirement income. Typically, claiming a spousal benefit early, at 62, results in a permanently reduced benefit amount compared to waiting until full retirement age, which is usually 67.
To watch next: The couple should consider factors such as life expectancy, other sources of retirement income, and overall financial goals when deciding when to claim the spousal benefit. Additionally, they may want to review the potential impact of inflation and taxes on their retirement income. It may also be helpful for them to consult with a financial advisor to determine the optimal strategy for claiming Social Security benefits.
Originally reported by marketwatch.com. BondNews adds analysis for finance & markets readers.