You may want to push the pause button before taking that walk down the aisle if you're close to retirement and counting on income from Social Security. There are some important rules you need to know to time that wedding day to maximize your Social Security benefits.
The most uncomplicated scenario would be getting married for the first time, with no ex-spouse or deceased spouse in the background of either spouse. In this case, you must be married at least one year in order for one of the spouses to be eligible for a spousal benefit. This is where one spouse receives half of the other spouse's Social Security benefit in the case where it's higher than their own. The higher-income spouse must have claimed their own benefit, and the spouse claiming the spousal benefit must be at least 62 years of age.
Now let's change the circumstances and assume you are receiving a spousal benefit on an ex-spouse's work record. In order to receive this benefit, you must have been married for at least 10 years, and both you and your ex must be at least 62 years of age. If you're close to the 10-year mark and contemplating a divorce, you may want to wait until after you reach that anniversary if you don't want to lose the spousal benefit.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If you remarry, you will no longer be eligible for those ex-spouse benefits. But you will be eligible for spousal benefits on your new spouse's record as long as you both have reached age 62.
If you do get remarried and later your second marriage also ends in a divorce, as long as you were married to each spouse for 10 years or longer, you can choose between the two spouses' benefits. If your second marriage did not last 10 years, you will still be eligible to collect benefits on your first spouse's record.
The last scenario to look at is when a spouse or ex-spouse is deceased. If it's a deceased spouse, you can claim survivor benefits starting at age 60, providing the marriage lasted nine months before the spouse passed away. If it's an ex-spouse, you can claim survivor benefits starting at age 60, providing the marriage lasted at least 10 years before the divorce. And, in that case, you can remarry, and it wouldn't affect your benefit.
The critical thing to remember in receiving survivor benefits in both of these situations is that if you remarry before age 60, this will cut off your eligibility to collect on your deceased spouse's or ex-spouse's record. This could be very expensive, because while a spousal benefit entitles you to half of the other spouse's Social Security, a survivor benefit would entitle you to all of it. If you wait until age 60 or later to remarry, you can still collect those survivor benefits from your deceased spouse/ex-spouse. You can also let your own benefit continue to grow until age 70, and if it's larger than the survivor benefit at that time, you can switch over to your own then.
The lesson to be learned is that seniors considering marriage need to plot out their strategy carefully when it comes to claiming Social Security, even if it means in some cases delaying your wedding day, or your divorce.
-
U.S. Treasury to Eliminate Paper Checks: What It Means for Tax Refunds, Social SecurityTreasury President Trump signed an executive order forcing the federal government to phase out paper check disbursements by the fall.
-
Bigger Social Security Checks Are Arriving in AprilPayments to eligible retired public sector employees will increase starting in April due to the Social Security Fairness Act (SSFA)..
-
Seven Questions to Ask When Evaluating Personal Loan OptionsTaking out a personal loan too hastily could lock you into unfavorable terms with an untrustworthy lender. Ask these questions before signing anything.
-
The Three Biggest Fears Keeping Retirees Up at NightHere are the steps you can take to put those fears to rest and retire with confidence so you can relax and enjoy the life you've planned.
-
What Can a Donor-Advised Fund Do for You? (A Lot)DAFs and private foundations go about helping charities (and those who donate) in different ways. Each comes with its own benefits and restrictions to navigate.
-
Estate Planning When You Have International AssetsEstate planning gets tricky when you have assets and/or beneficiaries outside the U.S. To avoid costly inheritance mistakes, it pays to understand the basics.
-
Three Essential Estate Planning Steps to Protect Your Nest EggAfter dedicating years to building your wealth and securing your future, make sure your assets are protected and your loved ones are provided for in the future.
-
Is Chasing the American Dream Ruining Your Financial Life?Too many people focus on visible affluence as a marker of success. Here's how to avoid succumbing to the pressure and driving yourself into debt.
-
Retiring With a Pension? Four Things to KnowThe road to a secure retirement is slightly more intricate for people with pensions. Here are four key issues to consider to make the most out of yours.
-
How to Teach Your Kids About the Tax Facts of LifeTaxes are unavoidable, so it's important to teach children what to expect. Also, does your child need to file a tax return for 2024? Find out here.
