Nowadays the average lifespan of people has risen and therefore one of the dilemmas is to think about which retirement strategy is the most appropriate to be chosen by couples to obtain greater benefits when claiming Social Security.
According to the Social Security Administration (SSA), a man who reaches retirement at age 65 has an average life expectancy of 84 years and in a similar case focused on a woman, her average life expectancy is 86.6 years.
This is why it is recommended to apply for retirement according to the life projection that you have as a couple.
In other words, if during the years prior to retirement a person enjoys good health, perhaps the best thing to do is to aspire to delay their Social Security payment, projecting that the older they get, the more generous the money they receive will be in relation to what they will get if they even apply for it early at 65 years of age.
In the case of a 65-year-old couple, it is estimated that at least one of the two people on average will survive to age 93, so as you get older, you will be better off getting a larger amount in the payments you receive.
A couple with similar incomes and ages and a long life expectancy can consider maximizing lifetime benefits by both delaying their request for a retirement payout.
However, for couples with large income differences, it is advisable to consider claiming the benefit of the higher earning spouse.
Another important point is that, if the members of the couple consider that their life expectancy is shorter, due to their declining health over the years, it is advisable to apply for their Social Security payments earlier.
An important point to take into account before choosing the most appropriate time to request your retirement payments is that once you reach 62 years of age, for each year that you postpone your Social Security payments until you reach 70 years of age, you can receive up to 8% in monthly payments. Thereafter, there is no further benefit.
In addition, Social Security payments are generally adjusted for inflation, and people who reach retirement are assured of a lifetime income.
In this sense, deferring the Social Security payment means a higher monthly benefit, but it takes time to compensate for the lower payments that are foregone during the period between the age of 62 and the time when one finally decides to claim his or her pension.
On the other hand, when one spouse dies, the survivor can claim the higher monthly benefit for the rest of his or her life.