That incentive just happens to run out at age 70. But if your FRA is 67, it means you have a chance of getting a 24% increase in your benefits – for life.
It is for this reason that waiting until age 70 to claim Social Security is often a very good idea. But here’s a scenario where waiting that long definitely doesn’t pay off.
Be careful when claiming spousal maintenance
We just learned that Social Security benefits are based on individual earnings. However, even if you were never part of the workforce, you may be entitled to Social Security if you were married or are to someone who qualifies for benefits.
It is a concept known as spousal alimony, and it’s something that serves as a financial lifeline for many retirees. If you are entitled to partner benefits, you may be eligible for up to 50% of the benefits your spouse receives, provided you wait until FRA applies.
Suppose your spouse is entitled to $2,000 a month in Social Security. If you claim a partner benefit from your FRA, you will get $1,000 per month.