FINANCIAL STRATEGIES GROUP
20
That is an increase in income of $550/month for as long as Joe and Jane are both
living! Over a 20 year period that is $132,000 in additional benefits received, not
including COLA increases!
When Death We Do Part
It is also very important to understand what happens when a spouse passes away.
If you and your spouse are both receiving Social Security Benefits and one of you
passes away, the surviving spouse gets the higher benefit, but not both. The lower
benefit will no longer be received. This is important for two reasons; First, there will
be a reduction in income at the death of the first spouse, and this should be planned
for. Second, this means that the higher benefit lives on as long as either one of the
spouses is living. Going back to our longevity conversation, two people have a longer
life expectancy than one person. This means
that whoever has the higher benefit should
be the one who considers delaying since the
higher delayed benefit will live on as long
as either spouse is alive. It also means that if
you are married, you should not only pay
attention to your health and longevity but
also to your spouses.
Jane
Benefit at Full
Retirement Age
(66)
Benefit at age 66
using Spousal
Benefits
$2,500 $700 $3,200
$3,750 $1,250 $2,500
Joe
Total Monthly
Benefit
CHAPTER 3
SOCIAL SECURITY
"the higher benefit lives on
as long as either one of the
spouses is living."
