Retirement should be a golden age of relaxation, travel and time with your loved ones. But for many couples, a minute or two spouses leave the labor force, the fantasy quickly turns into friction. Why? Social Security – More specifically, everything they think they know.
Decades of misinformation, complex rules and changes to the plan have led to many myths that will only be faced when it is too late. These myths will not only cause confusion. They caused controversy. Regarding when to submit, how much money you owe, who can get what and whether you can fully trust the system.
Let’s break seven social security myths that fuel the biggest battle between couples and how to avoid falling into these traps when retirement finally arrives.
1. “We should both ask for benefits as soon as possible.”
Social Security allows you to start charging benefits at the age of 62. But what many people don’t realize is that doing so will permanently reduce your monthly spending. If you wait to your full retirement age (usually 66 to 67, depending on when you were born), you will get the full benefit. Wait longer (up to 70 years old), and your income will actually increase due to delays in retirement credit.
In couples whose spouses retire around the same time, the impulse to enjoy and “enjoy life” can be strong. However, if a spouse is healthy and has a longer life expectancy, delaying its benefits can mean a thousand more household income later, especially for surviving spouses. When one partner feels delayed and stressed out of another partner, it is often a start to argue, or, worse, when someone claims to claim themselves too early without consulting a spouse. Timing matters and decisions should be made together.
2. “If I die first, you will automatically gain all my benefits.”
Another emotional trigger in retirement discussions is the assumption that the surviving spouse will automatically receive the full Social Security benefits of the deceased partner. Unfortunately, this is not always true. Here is the way to really work: The surviving spouse is entitled to the higher of these two benefits, but that’s not both. If your spouse dies, you will not collect their checks except your own. You will get bigger options, but you may lose smaller gains altogether.
This is a serious problem for couples, with a partner having a significant reduction in life income, working part-time or from home. Many families expect that they will automatically inherit the full spending of their partner, but this is only true if they are eligible for survivor benefits and meet certain age standards.
Not understanding this rule has left many widows and widows in financial chaos. It’s better to plan survivor benefits now – after it’s too late to adjust.
3. “We are both working, so spousal benefits don’t apply to us”
Spousal benefits are not only applicable to an income family. If one spouse earns more than the other, or if one has a non-traditional work history, it may make more sense for lower earners to claim their spouse benefits rather than their own finances.
Spousal Benefits allow one partner to claim 50% of another full retirement benefit. This could be a better deal if your personal work record is not qualified for yourself.
When the spouse insists on “professing” out of pride or misunderstanding, arguments arise. In fact, it is wise to coordinate benefits for the highest income of the household income, not signs of weakness or dependence.
4. “Once it is proposed, we can change our mind later”
Once you propose Social Security, it is tricky to turn around that decision. There is a once, a 12-month window where you can withdraw your application, but only if you repay all benefits you have received so far.
Couples sometimes make hasty application decisions, only to realize later that they should wait. By then, their monthly payments have been locked for life and there is no turning back unless you are willing and able to repay everything.
This myth can cause serious dissatisfaction among partners, especially if you feel anxious to submit early due to fear, stress or misinformation. Absolutely sure you want to take the right move before submitting.
5. “Social security is going bankrupt, so we need to catch ours right now”
The fear of the future of social security is understandable. You may see headlines warning that the program will “exhaust money” in the coming decades. Although trust funds are expected to be exhausted in the 2030s, this does not mean that the gains will disappear.
Even without full funds, payroll tax will cover 75-80% of current benefits. Legislators may also intervene in changes before cutting benefits.
Still, the panic has led many to demand early, just to lock in checks with smaller lifespans. The myth of complete collapse has been exaggerated. It is best to make a decision based on your personal lifespan, savings and income needs. Not the headlines that are afraid to drive.
6. “Divorcery means I lose all claims about your social security”
This myth often appears in later divorces, which can lead to unnecessary stress, especially for married spouses. The truth is that if you have been married for ten years or longer, you may still have the right to claim spouse benefits based on your former spouse’s work record. You don’t need their permission and you won’t reduce what they or their new spouse receives.
Couples often fail to realize that this rule applies to the former spouse, which can cause debates in mixed families or second marriages. It’s worth investigating your qualifications, especially if your own benefits are greatly reduced.
7. “Social Security is designed to cover everything we need when we retire”
Perhaps the most dangerous myth is that Social Security alone can maintain the idea of two people throughout retirement. For the average American, Social Security replaces only 40% of pre-retirement income.
Relying on social security alone is a financial risk that few couples can afford. However, many find this reality too late – after leaving the workforce, they have narrowed down and think that the inspection will stretch more than they do.
Differences often arise when one partner wants to continue working or saving while another thinks they have “winned a break.” A healthy retirement requires more than nostalgia – a strategy is required.
Plan together is a real retirement goal
Retirement is more than just collecting checks. It’s about building a lifestyle together. Social security is a key part of this puzzle, but misunderstanding of the rules (or each other) can not only lead to financial losses. It can lead to resentment, conflict and fear.
Before you make a claim, take some time to understand the procedure. Talk about your goals, fears and financial reality honestly. Retirement is not necessarily a battlefield. As long as you both read the same rulebook, this could be a common victory.
What is a social security myth you or you know?
Read more:
Getting social security for spouses 10 times makes more sense
When Social Security is Enough: 8 Ways to Ensure Your Social Security Will Fund a Modest But Happy Life
Riley is an Arizona native with over nine years of writing experience. From personal finance to travel to digital marketing to popular culture, she wrote everything in the sun. When she is not writing, she will spend time outside, reading or embracing two corgis.
