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.
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.
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
-
What Wall Street's CEOs Are Saying About Trump's TariffsWe're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
-
The Role of the U.S. Dollar in Retirement: Is It Secure?Protect your retirement from de-dollarization, because “capital always goes where it is treated best."
-
To Stay on Track for Retirement, Consider Doing ThisWriting down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
-
How to Make Changing Interest Rates Work for Your RetirementHigher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
-
Within Five Years of Retirement? Five Things to Do NowIf you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
-
The Home Stretch: Seven Essential Steps for Pre-RetireesThe decade before retirement is the home stretch in the race to quit work — but there are crucial financial decisions to make before you reach the finish line.
-
Three Options for Retirees With Concentrated Stock PositionsIf a significant chunk of your portfolio is tied up in a single stock, you'll need to make sure it won't disrupt your retirement and legacy goals. Here's how.
-
Four Reasons It May Be Time to Shop for New InsuranceYou may be unhappy with your insurance for any number of reasons, so once you've decided to shop, what is appropriate (or inappropriate) timing?
-
Before You Invest Like a Politician, Consider This DilemmaAs apps that track congressional stock trading become more popular, investors need to take into consideration some caveats.
-
How to Put Together Your Personal Net Worth StatementNow that tax season is over for most of us, it's the perfect time to organize your assets and liabilities to assess your financial wellness.
