Getting married is a major life event. It requires a lot of planning that goes beyond the ceremony, especially when it comes to your finances. In addition to making sure you and your partner have similar spending habits and financial goals, you may want to consider planning for your lives in retirement. This may seem premature, but in the world of personal finance, it’s never too early to plan for your retirement.
An important part of planning is knowing what benefits you’ll have once you clock out from work for good.
The Social Security benefits of marriage
You’re probably aware that marriage brings certain financial benefits. For some, this could mean tax breaks or better access to health insurance, but it could also lead to bigger Social Security benefits. To qualify for Social Security benefits you must be at least 62 and have worked long enough to earn 40 credits, but there’s an exemption for married couples. The Social Security Administration provides benefits to both spouses, regardless of who brought home a paycheck.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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.
This means a stay-at-home parent is eligible for benefits, even if they’ve never entered the workforce, but some other requirements must be met.
Some Social Security qualification basics
Generally speaking, you must be married for at least a year to qualify for spousal benefits. You must also be at least 62 years old, unless you’re caring for a biological child under 16, or a child who is already receiving Social Security disability benefits. However, your spouse must file for Social Security before you can receive spousal benefits regardless of age.
As for the actual payment, a married person can collect benefits based on their earnings or receive a maximum of 50% of their spouse’s Social Security benefits. The government will calculate both scenarios, basing your payment on whichever amount is greater.
Situations where your spousal benefit may be reduced
Now there are some caveats to spousal benefits. If you file to start taking your benefits before your full retirement age, your spousal benefit will be reduced. However, it’s important to note that simply claiming spousal benefits will not impact your spouse’s checks. Another caveat to this system applies to certain workers. If you receive a pension from a government job and you’re not required to pay into Social Security while working there, your benefits and your spouse’s benefits will be reduced by two-thirds of the amount of your pension.
Whether you’re planning a wedding or are a newlywed couple, it’s important to explore all the options you have at your disposal when planning for life in retirement. Social Security is a great benefit to have. But to live comfortably, you must start saving for your retirement as soon as possible. Consider talking with your spouse about opening an IRA or high-yield savings account. Also, check out employer-sponsored retirement accounts.
Taking the time to kickstart your retirement plan now will save you a lot of stress in the future.
Related Content
- Pros and Cons of Waiting Until 70 to Claim Social Security
- Three Ways to Delay Claiming Social Security Benefits
- Three Social Security Changes In 2024 to Know
- How to Calculate the Break-Even Age for Taking Social Security
- Social Security Optimization if You Save More Than $250,000
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
-
To Reap the Full Benefits of Tax-Loss Harvesting, Consider This Investment Strategist's StepsTax-loss harvesting can offer more advantages for investors than tax relief. Over the long term, it can potentially help you maintain a robust portfolio and build wealth.
-
Social Security Wisdom From a Financial Adviser Receiving Benefits HimselfYou don't know what you don't know, and with Social Security, that can be a costly problem for retirees — one that can last a lifetime.
-
Take It From a Tax Expert: The True Measure of Your Retirement Readiness Isn't the Size of Your Nest EggA sizable nest egg is a good start, but your plan should include two to five years of basic expenses in conservative, liquid accounts as a buffer against market volatility, inflation and taxes.
-
New Opportunity Zone Rules Triple Tax Benefits for Rural Investments: Here's Your 2027 StrategyNew IRS guidance just reshaped the opportunity zone landscape for 2027. Here's what high-net-worth investors need to know about the enhanced rural benefits.
-
The OBBB Ushers in a New Era of Energy Investing: What You Need to Know About Tax Breaks and MoreThe new tax law has changed the energy investing landscape with expanded incentives and permanent tax benefits for oil and gas production.
-
Ten Ways Family Offices Can Build Resilience in a Volatile WorldFamily offices are shifting their global investment priorities and goals in the face of uncertainty, volatile markets and the influence of younger generations.
-
Should Your Brokerage Firm Be Your Bookie? A Financial Professional Weighs InSome brokerage firms are promoting 'event contracts,' which are essentially yes-or-no wagers, blurring the lines between investing and gambling.
