Special strategies for receiving retirement benefits.
As is so often the case today, individuals find themselves needing to work even after reaching retirement age due to their inability to survive on their retirement savings and Social Security. They might even find themselves struggling even though they continue to work. This is often true when the husband works and the wife is a homemaker.
One method used by my clients to increase cash flow is by having the wife collect spousal benefits based on the husband’s earnings. Since the spouse may only receive spousal benefits when the worker has begun drawing benefits, this creates a problem. However, a potential solution exists.The worker may file for benefits at full benefit retirement age, thus allowing the spouse to file for spousal benefits. The worker can then immediately suspend benefits to earn the delayed retirement credit, while the spouse continues to receive spousal benefit. (This strategy is allowed under the Senior Citizens’ Freedom to Work Act of 2000.)
For a complimentary review of your retirement strategy contact us at 716 633 0367.