In 2024, a significant change occurred in the realm of Social Security as the spousal benefit rule, which had been in place for decades, officially ended. This rule had allowed spouses of Social Security recipients to claim higher benefits by switching between their own and their spouse’s earnings potential. However, only those born before January 1, 1954, could fully harness this rule's advantages, as changes enacted in 2016 limited new claimants' ability to maximize their benefits.
With the retirement options evolving, there are still effective strategies to enhance spousal benefits. First, strategic planning remains crucial. Couples should consult online resources from the Social Security Administration to evaluate their projected benefits based on different claiming ages.
Secondly, it's important to avoid early claims. While you can begin receiving benefits as early as age 62, doing so can reduce your benefits by up to 30%, affecting both your and your spouse's future payouts.
Lastly, don’t wait until age 70 to claim; this may not be beneficial for spousal benefits, which cap at 50% of the primary beneficiary's amount.
For in-depth insights and updates on these changes, visit reliable sources like GOBankingRates or MarketWatch.
