Married couples generally have higher expenses in retirement than single people because they have to cover two living expenses: twice as much for groceries, twice as much for medical expenses, and twice as many budgeted goals.
But they also have an advantage when it comes to Social Security benefits. Married couples can receive two monthly checks if at least one partner has worked long enough to qualify. The annual income from this program is:
What the average married couple currently receives from Social Security
Average Month Severance pay As of May 2024, the minimum monthly benefit is $1,917. If both spouses qualify for this amount, the household would receive a monthly benefit of $3,834, or about $46,000 per year. For most people, this will go a long way toward covering annual retirement expenses. These benefits can be supplemented with personal savings or employment income.
But many couples don’t get this much. If only one partner has worked long enough to qualify for Social Security, the other partner can’t claim retirement benefits. However, Spouse benefitsThis is up to half of the retirement benefit a worker would be eligible for at full retirement age. So if a married couple received the average retirement benefit of $1,917/month and the average spousal benefit of $911/month, their total Social Security benefits would be $2,828/month, or just under $34,000/year.
But this is only an estimate: Most workers won’t qualify for the exact average benefit amount, and those who qualify may receive different amounts depending on their age when they enroll.
How couples can plan for Social Security retirement
Understanding how much you’ll receive from Social Security is key to effectively budgeting for retirement. My Social Security Account.
After verifying your identity, your account will tell you whether you’ve worked long enough to be eligible for Social Security. If you’ve worked long enough, there are tools to estimate how much your monthly benefit would be at any age you’re eligible for benefits. You can also tweak your future income estimates if, for example, you want to see how a pay raise would affect your check.
You can file for retirement benefits as soon as you turn 62, but if you want the full benefit you’re entitled to, you must wait until your full retirement age (FRA), which is 66 to 67 depending on when you were born. Filing early reduces your benefit by up to 30%, but you can also defer taking your benefits beyond your FRA, where your benefit will increase gradually (up to 32%), reaching its maximum at age 70.
Spousal benefits are a bit more complicated. Most people can file for them starting at age 62, but only if their spouse is already claiming Social Security. If not, you have to wait until your spouse files for them. Delaying Social Security also gives you a gradually increasing monthly benefit, but it’s capped once you reach your FRA. So unlike retirement benefits, there’s no additional benefit to delaying spousal benefits until age 70.
That said, if you’re eligible for both retirement benefits and spousal benefits, the Social Security Administration will automatically pay you the greater of the two. If you’re not sure which you’ll get, there’s a tool in your My Social Security account that can help you estimate your benefits at all ages you can claim.
Work with your spouse to determine when you each plan to claim your benefits. Once you know how much you’ll get in benefits, you’ll know how much you need to save for retirement.
$ is22,924 The Social Security bonus that most retirees completely overlook
Like most Americans, you’re a few years (or more) behind on your retirement savings. But with a few little-known “Social Security secrets,” you could be sure to boost your retirement income. For example, one simple tip could help you save up to $22,924 And with more coming every year, learning how to make the most of your Social Security benefits can help you retire confidently with the peace of mind we all crave. To learn more about these strategies, click here.
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How much will the average married couple receiving Social Security earn in 2024? Originally published on The Motley Fool
