The Smart Social Security Strategy Nobody Knows About | Summary and Q&A

TL;DR

Learn about a little-known strategy called the restricted application, which can help married individuals maximize their Social Security benefits.

Key Insights

• 🈸 Social Security benefits can be maximized by exploring lesser-known strategies like the restricted application method.
• 🛄 Waiting to claim benefits can significantly increase monthly payments.
• 💦 The decision between the restricted application and file and suspend strategies depends on the spouses' work histories.

Transcript

fools Social Security is a very complex program and it's more important now than ever before that you make the most of it in order to provide as much income as possible for your retirement but how do you navigate the complicated rules that govern Social Security benefits my name is Dan kaplinger I'm the mle Fool's director of investment planning an... Read More

Questions & Answers

Q: What is the restricted application strategy for Social Security benefits?

The restricted application strategy allows one spouse to claim spousal benefits based on the other spouse's work history while leaving their own benefits untouched.

Q: When does it make the most sense to use the restricted application strategy?

The restricted application strategy is more beneficial when both spouses have similar work histories. If one spouse has little or no work history, the file and suspend strategy may be more suitable.

Q: How much can waiting to claim benefits after full retirement age increase monthly payments?

Waiting from age 66 to age 70 can boost Social Security benefits by almost a third, as monthly payments increase by about 8% per year.

Q: Where can I find more information about Social Security benefits?

For more information on Social Security, visit fool.com.

Summary & Key Takeaways

• Social Security benefits are complex, and it's important to navigate the rules to ensure maximum retirement income.

• The restricted application strategy allows one spouse to claim spousal benefits based on their partner's work history while leaving their own benefits untouched.

• Waiting to claim benefits after full retirement age can significantly increase monthly payments.