When should a married couple take Social Security benefits? A split strategy with one person claiming at 62 while the other delays until 70 is a common suggestion. But why do people suggest this for married couples? More importantly, is that the right strategy for you?

We’ll review the reasons behind that suggestion in this video. While it’s not the perfect solution for every couple (in my work with clients, I rarely find that it's the best strategy), there is a method to the madness. For instance, it can bring money into the household when one person reaches age 62, which can be especially helpful when an early death occurs. It can also help to maximize a survivor benefit, and in many cases, you “unlock” the spousal benefit at a level that’s favorable.

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However, there may be reasons to avoid that spousal claiming strategy or adjust it to fit your needs. If you want to protect against longevity, the traditional split strategy may not be right for you. And when one person claims early (locking in a reduced benefit), it could be harder to use tax planning strategies that help you manage RMDs and health care premiums in retirement.

Medicare costs and healthcare from the Marketplace or Exchange may depend on your income—that’s a surprise to a lot of people.

To review this strategy, we’ll look at Open Social Security, which is a free online calculator from Mike Piper, CPA. You can enter your own numbers into that tool and get insight on your situation. You’ll see how different ages and assumptions about longevity affect the results, and you can see how the spousal benefit gets unlocked when the higher-earning spouse eventually claims.

Tools shown in this video:
Open Social Security (calculator): https://opensocialsecurity.com/
SSA calculations for spousal benefits: https://www.ssa.gov/oact/quickcalc/sp...
Devin Carroll on spousal benefits: https://www.socialsecurityintelligenc...
Read the article here: https://www.approachfp.com/social-sec...

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Justin Pritchard, CFP® is a fee-only fiduciary advisor who can work with clients in Colorado and most other states.

CHAPTERS:
00:00 One Spouse Claims at 62 and the Other at 70?
01:04 Reasons Behind the 62/70 Split Strategy
05:32 Will You Get 50% as a Spousal Benefit?
06:51 When it Makes Sense to Delay
11:15 Examples With Open Social Security

IMPORTANT:
It's impossible to cover everything you need to know in a video like this. The only thing that's certain is that you need more information than this. Always consult with a CPA before making decisions or filing a tax return. This is general information and entertainment, and is not created with any knowledge of your circumstances. As a result, you need to speak with your own tax, legal, and financial professional who is familiar with your details. This video is not a substitute for individualized, personal advice. For tax-free withdrawals from Roth accounts, you must satisfy specific IRS requirements. Please verify with your plan administrator when employer plans are involved. This information may have errors or omissions, may be outdated, or may not be applicable to your situation. Investments are not bank guaranteed and may lose money. Opinions expressed are as of the date of the recording and are subject to change. “Likes” should not be considered a positive reflection of the investment advisory services offered by Approach Financial, Inc. The Comments section contains opinions that are not the opinions of Approach Financial, Inc., and you should view all comments with skepticism. Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.