62/70 Split - Social Security
There has been debates for years on what option is best for applying for Social Security benefits. Some say the 62/70 split is the best method, others think you should take it the second you are eligible, and others say it is foolish to receive benefits before the age of 70. While these three options can each be beneficial under certain circumstances this article will be discussing the 62/70 split option.
62/70 Split - Couples
The 62/70 split is a retirement option for couples who are considering the timing of their Social Security benefits. This option is put into place usually by seniors who need to receive additional income but do not need the income from both spouses.
This strategy says the lower-earning spouses should collect his or her Social Security benefits at age 62 while the higher earner holds on their benefits until age 70. Because of the survivor benefit of Social Security, the higher benefit will continue. Each year a person holds off on receiving their benefits passed the retirement age they receive a credit up until age 70. After year 70, there is no additional credit.
Some people argue that it is foolish to not take the benefits when first available since we could pass away at any time. This theory has some ground to it and one that you should probably consider if you have a terminal illness or serious health conditions that predict an earlier than average death.
Why would you consider the 62/70 Split?
In today's economy we are seeing more an more families that need the income when it is available, but they do not want to take a hit or a decrease on the benefits they could receive. If the lower income earner receives benefits this can provide the couple with temporary relief of any financial obligations they may have for several years while they wait on the other spouse to reach full retirement benefits.
For couples in this age range we highly recommend reviewing your Medicare options as well. While people think the $100 a month they may lose on Social Security benefits is a lot, the amount people throw away by not speaking with a Senior Market Advisor about their Medicare options is ridiculous.
Insurance savings is one of the biggest ways seniors can save money. Medicare Supplement Rates and Part D plans are structured where they should be compared every few years with a qualified advisor and we can help you with that. Please call Medicare Insurance Finders today to see how much you can save! The average client saves over $500 per year and the average couple saves close to $1,000 per year.
Medicare Insurance Finders - 1-877-759-5760