File, Suspend Gets Spouses Most SSA Benefits
NEW BERLIN, Ill. (TheStreet) -- You may have heard of the file and suspend tactic for Social Security, but do you know how it works? Or for that matter, why it is important?
Any worker can establish a benefit amount by applying at any time after full retirement age -- but he or she doesn't have to continue getting that benefit. The worker can immediately suspend the receipt of benefits, which may seem crazy but actually builds a "base" for the worker's spouse to begin getting benefits based upon that amount.
Here's an example:
A woman is at full retirement age and her spouse is the same age. Since the spouse of the worker has a much lower benefit available based on his own record, he is looking forward to using his wife's earnings record to get a spousal benefit, which can be as much as 50% of his wife's benefit.
|Delaying receipt of a higher-earning spouse's Social Security benefit can reap rewards for the couple.|
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