Key Points

• The Social Security Administration (SSA) bases your monthly Social Security check on how much you earn during your 35 highest-earning years.

• The only way to qualify for the largest benefit is to delay collecting Social Security until age 70.

• If you claim Social Security but quickly realize you should have waited, you may be able to reverse the process.

• The $23,760 Social Security bonus most retirees completely overlook ›

While the average monthly Social Security retirement benefit is just shy of $2,000, the maximum monthly benefit is $5,108. Here's how to know if you're eligible for the largest benefit amount available.

You've worked for 35 or more years

Your Social Security benefits are calculated based on how much you earned during your 35 highest-earning years. If you're unsure how much you've earned through the years, visit my Social Security, where you'll find a year-by-year earnings breakdown.

Let's say you've worked for fewer than 35 years. The calculations used to determine your monthly benefit will include zeros for any years you didn't work. Those zeros lower your overall earnings average.

You typically get a break from Social Security taxes

Currently, the maximum income subject to Social Security tax is $176,100. No matter how early in the year your income hits $176,100, you're done paying Social Security tax until the following calendar year. You need to have earned at least the relevant maximum income for 35 years.

This is nothing new. According to the SSA, a maximum amount of income has always been subject to Social Security taxes. For example, in 1937, you'd only pay taxes on the first $3,000 in earnings. By 2011, that amount had grown to $106,800.

If you've routinely earned enough to max out how much you pay in Social Security tax, you could be eligible for the largest benefit when you retire.

Note: Because the maximum income subject to Social Security tax changes annually, it could be a challenge to calculate whether your income is on course to qualify for the highest Social Security benefit. You don't have to do the calculations yourself. The my Social Security site clearly shows you how much you'll be eligible for each month up to age 70.

You plan to delay benefits

When you plan to claim Social Security benefits determines whether you'll qualify for the largest payout. The only way to receive the maximum allowable benefit ($5,108 a month in 2025) is to delay claiming Social Security until age 70.

While you can begin collecting Social Security as early as 62, doing so comes at a cost. Claiming benefits at 62 rather than waiting until your full retirement age of 66 years and 10 months or 67 years (depending on the year you were born) will reduce the amount you receive by 30%.

For example, if you're due to receive a monthly Social Security check for $3,000 at age 67 but claim benefits at 62 instead, your checks will be reduced by $900, to $2,100. If you're married and your partner plans to claim spousal benefits based on your work record, their monthly check will also be permanently reduced.

If you're aiming for the highest possible Social Security benefit, you'll want to wait until age 70 to make your first claim.

Did you know that you can change your mind?

If you claim Social Security benefits, but realize you've made a mistake, you can reverse your decision. According to the SSA, if it's been less than 12 months since you started benefits, you can ask for benefits to stop and pick up again when you're ready (and when your benefit amount has increased). Here's what you need to know about the process:

• You must make the request in writing.
• You must repay everything you've received up to that point.
• You may reapply when you're ready for benefits to resume at a higher amount.
• You can only request a stop one time in your lifetime.

Securing the largest Social Security paycheck boils down to over three decades of high earnings and delaying your retirement. However, you don't have to receive the highest possible benefit to thrive in your golden years. Regularly contributing to savings and retirement accounts, paying off debt, and carefully planning a post-retirement budget can all contribute to a low-stress retirement.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

Key Points

• Your health plays a huge role in determining the best time to collect Social Security.

• Also key is if your savings, pensions, or part-time work aren't enough to keep you afloat.

• If you’re married, your decision may affect your spouse and how much they’re eligible to collect.

• The $23,760 Social Security bonus most retirees completely overlook ›

It's possible to begin collecting Social Security benefits as early as age 62. Or, if you want to max out your monthly benefits, you can wait until 70 to claim your first check. The fact that you have options, each with pros and cons, can make it challenging to decide the right time for you.

As the Social Security Administration (SSA) points out, "there's not a single 'best age' for everyone and, ultimately, it's your choice." To help you determine when the best time is to begin collecting, here are three questions to ask yourself.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

1. Are there any gaps in my budget?

Let's say you're partially retired but working part-time. To make ends meet, you periodically draw money from retirement savings or a pension. Still, you often have trouble covering all your monthly expenses. If this scenario describes you and you don't want to return to work full-time, it's a good sign you should at least consider claiming the Social Security benefits you've earned.

The first step is to visit my Social Security, an SSA site that breaks down how much you're owed in benefits at any time. Knowing how much you can expect in monthly benefits can help you determine whether now is the best time to take the leap.

2. How much are my partner and I counting on spousal benefits?

Suppose you're married and have historically earned more than your spouse. In that case, your significant other may plan to collect spousal benefits, rather than benefits based on their own work history. A spouse can receive up to 50% of the amount you're owed. For example, if your monthly benefit at full retirement age (FRA) is $3,000, your spouse is eligible for up to $1,500.

If you haven't yet reached FRA, consider what would happen if you were to retire now. Let's say your expected monthly benefit at age 67 is $3,000, but you're only 62. Claiming benefits now will cut your check by 30%, or $900 per month. That means your spouse will be eligible for $1,050 monthly instead of the $1,500 they'd be eligible for if you were to wait.

However, if you've faithfully invested through the years and aren't counting on spousal benefits to ensure bills are paid, you may be ready to retire immediately. Any benefits received by your spouse could be invested for the future, go toward building a larger emergency fund, contributed to a grandchild's college fund, or used for travel.

In other words, the less you're counting on Social Security benefits to retire in style, the more confident you can be in making a claim now.

3. How's my health?

Health issues are a challenge in many ways and can make it next to impossible to hold out for the largest possible Social Security check. If you're ill, physically unable to work, or facing a health condition that may shorten your life span, claiming Social Security right away may be your best move. Not only will it help provide the income you need to pay bills, but the money may also allow you to spend more time focusing on your health.

To paraphrase the SSA, there is no "best age" for everyone. What's right for you has nothing to do with what's right for someone else. If you're on the fence about what you should do, consider meeting with a financial or retirement planner who can walk you through the different scenarios you may face. If for no other reason, it will help you gain some peace of mind.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

Key Points

• RMDs are mandatory withdrawals from retirement accounts that you must make.

• If the funds withdrawn are not needed, you have an array of reinvestment options.

• Diversification remains just as important as when you first invested the money.

• The $23,760 Social Security bonus most retirees completely overlook ›

If you saved for retirement using a traditional IRA, 401(k), 403(b), 457(b), or SEP IRAs, you're likely aware of RMDs: required minimum distributions. Depending on the year you were born, you're probably fulfilling your RMD requirements already, or will begin taking RMDs at age 73 or 75 (if you were born in 1960 or later).

RMDs are mandatory withdrawals from retirement accounts that must start by April 1 of the year following your 73rd or 75th birthday. Failure to take an RMD can lead to a hefty tax penalty. But what if you don't need that money immediately and want to put it somewhere it can continue growing?

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

If you're reinvesting your RMDs, here's what you need to know.

The first step is to consider cash flow

When considering reinvesting, double-check your annual budget to ensure you're not cutting yourself short. Don't forget to factor in irregular expenses, like HOA fees, insurance premiums, home and vehicle maintenance, property taxes, and pet expenses.

You'll probably owe taxes

Uncle Sam wants his piece of the pie, no matter where or how you reinvest an RMD. Because you didn't pay taxes on the income when it was initially invested, it will be due in the tax year the RMD is made, even if you roll it directly over to another investment account.

Options are fairly limitless

Maybe you've had more time to study investment options or become more conservative now that you're not earning a regular income. In either case, your options are wide open. Your money can go wherever you believe will best serve your needs. For example, you can reinvest funds into mutual funds, stocks, bonds, or taxable brokerage accounts, where the money can grow and provide dividend income.

If you don't have one already, now may be a good time to meet with a retirement advisor who can help you understand each option's pros and cons. The important thing is to carefully consider your investment goals, risk tolerance, and how long you predict the funds will remain in the new account.

Diversification still matters

Even if you can't foresee a day when you'll need the money you're reinvesting, protecting your assets by diversifying the new investments is essential. Diversification is key to helping manage portfolio risks.

You may come to appreciate bear markets

A bear market is typically defined as a drop of 20% or more in a major stock market index from its recent high. Many factors, including an economic recession, geopolitical tensions, and rising interest rates, can trigger bear markets. While some investors dump stocks when things start to go south, hanging in there can be advantageous. A bear market gives you the opportunity to buy low and watch your assets grow in value as the market recovers.

One note about bear markets during retirement: Consider stowing enough cash in a separate account to cover living expenses so you aren't tempted to sell assets while portfolio values are at rock bottom. The goal is to take advantage of low prices to plump your portfolio while you can. The fact that you've decided to reinvest RMDs indicates that you don't believe you'll need the money to cover bills.

However, an unexpected issue, such as a higher-than-expected medical expense or natural disaster, could make it challenging to stick with the plan, and having an alternate source of funds could help.

Treat your new investments just as you treated your old

Anything you reinvest in needs a little babysitting. For a long-term investor, that means regularly reviewing your new strategy to ensure it continues to meet your needs. For example, if you decide to go for broke and make riskier investments, switching that strategy is OK if you find it's not working for you.

Consider yourself fortunate if you can reinvest an RMD rather than use it to pay bills. Once you've made the tough decisions, you can sit back and (hopefully) watch your money grow.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

Key Points

• While every year you wait to claim Social Security after 62 will increase your checks, waiting may not be the right decision for millions of Americans.

• Having more than one source of income can make early retirement easier.

• A Boston College study found that after years of paying into Social Security, many are anxious to claim what is theirs.

If you're like most people, the earliest you can claim Social Security benefits is age 62. Waiting until later, though, will increase the size of your monthly checks . Still, there are plenty of reasons you may prefer to begin receiving Social Security benefits at 62.

Motivated by necessity

You've probably heard that you should postpone claiming Social Security for as long as possible to maximize the amount you receive. That one-size-fits-all advice does not work for everyone. Often, claiming benefits at 62 is a necessity.

Issues like job loss, health problems, or needing the money to cover the basics can all push you toward making an earlier-than-expected claim. It may not necessarily be what you wanted, but it was the most prudent thing to do given your circumstances.

Necessity is the most common reason Americans claim Social Security sooner rather than later. However, not everyone who makes a claim at 62 does so because they don't have options. Here are some less common reasons you might decide to take Social Security early.

You're expecting a long retirement

According to the Census Bureau, the average life expectancy for a man aged 62 is approximately 19.61 years. For a woman, it's 22.50 years. If you're in relatively good health and come from a family that tends to enjoy long lives, you may want to spend as many years as possible collecting the Social Security you've spent decades paying into, even if it means collecting less in total than you would have if you'd waited until age 67 or 70 to collect.

Let's face it: At 62, you may simply be ready to enjoy the rest of your life without the burden of a job.

You're expecting a shorter retirement

On the other hand, if you're dealing with serious health issues and it doesn't look like you'll live long, why not take the money you've worked for and enjoy the years you have left? As long as you have enough money to cover your expenses, early retirement may help you enjoy your remaining time.

Don't forget that you won't be eligible to apply for Medicare until three months before your 65th birthday, and healthcare is a significant consideration in any post-retirement budget. Make sure you have an alternate source of health insurance set up. If you're married and your spouse plans to continue working, that may be the easiest way to maintain coverage.

Your job is physically taxing

An Economic Policy Institute report found that roughly half of older workers (aged 50 to 70) have physically demanding jobs, with more than half working in environmentally hazardous conditions. Whether you're physically taxed by your day-to-day work, a challenging work schedule, or a high-pressure job, it makes sense to want to remove yourself from the situation.

Whether you have plenty of money put away to retire from a difficult job early or supplement Social Security benefits by taking on something easier on your body (and soul), taking care of yourself is crucial.

You consider Social Security supplemental income

The average Social Security check is around $2,000, or $24,000 annually. If you have other sources of income, like stock dividends, bonds, annuities, a pension, or a part-time job you can count on to make up the bulk of your income, you've not only planned well, but you've positioned yourself to retire a bit early.

You've earned it

According to the Center for Retirement Research at Boston College, workers feel a sense of ownership about Social Security benefits after years of payroll taxes being deducted from their paychecks. They are anxious to claim what is theirs. That desire may be amplified by concerns that Congress won't come up with a funding solution that prevents benefits from being cut.

There are clear pros and cons associated with claiming Social Security at age 62. However, the decision is strictly yours to make. Your best bet is to put pen to paper to determine your expected income sources and expected post-retirement expenses. Once you have those two figures, you'll have a good idea if retiring at 62 is a legitimate option.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

Key Points

• By automating, you can decide in advance how often you want to make withdrawals.

• Automation helps ensure withdrawal accuracy.

• If you're looking to simplify record-keeping, automation can help.

Whether you look forward to required minimum distributions (RMDs) because the money helps cover bills or resent them because you'd rather let the money grow, they're a way of life. If you're currently retired, you might already be taking RMDs. If you're getting close to retirement, you'll either be required to take them at age 73 (or 75 if you were born in 1960 or later).

No matter how you feel about those RMDs, there are at least 10 advantages to automating them so they hit your bank account without you having to lift a finger.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

1. Convenience

Let's face it: Just because you're retired doesn't mean you're not busy. In fact, you may be busier as a retiree than you ever were when you were younger. Automating RMDs eliminates the need to mark the date on the calendar, manually calculate how much you need to withdraw, and ensure the job gets done.

Given how easy most financial institutions make it for you to automate your RMDs directly from your retirement account, you can set it and forget it.

2. You're in charge

With automated RMDs, you can customize when withdrawals are scheduled. For example, you may choose to receive distributions monthly, quarterly, or annually, depending on what you have going on in your life and cash-flow needs.

3. Timeliness

Automation allows you to stop worrying whether your RMDs will be taken on time, helping you avoid missed deadlines and dreaded penalties.

4. Accuracy

Automated systems reduce the risk of math errors in calculating the correct RMD amount, ensuring you comply with IRS regulations.

5. Tax efficiency

Once you've developed an overall tax planning strategy, an RMD can help ensure distributions are taken in a way that aligns with your plan (hopefully, helping you pay less in taxes).

6. Reinvestment

You can also pair automated RMDs with reinvestment strategies by setting up automatic transfers to other investment accounts, allowing you to potentially grow your funds while complying with RMD rules and regulations.

7. Simplified record-keeping

Automated RMDs simplify record-keeping, making it easier to track your distributions and report them accurately at tax time.

8. Help with multiple accounts

If you have multiple retirement accounts, automating your RMDs can simplify the way you track and manage RMDs across each account, ensuring you remain compliant with the specific rules of each account type and IRS rules.

9. Advisory services

Many financial advisors offer automated services as part of their overall retirement planning packages. These may include advice on managing distributions to minimize taxes and maximize remaining retirement savings.

10. Sidesteps emotional decision-making

Automating your RMDs can help you avoid making emotional decisions regarding withdrawals. Once automation is set up, you're less likely to make impulsive moves based on personal circumstances or fluctuations in the market.

If you're looking for more time to do the things you enjoy in retirement, automating your RMDs may be worth looking into. While it's not for everyone, leveraging the services of financial institutions and available technology can buy you the extra time you need.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

Key Points

• Five years out from retirement is an excellent time to get a measure of how ready you are.

• You still have time to do more, including building your nest egg.

• You should become intimately familiar with Social Security, Medicare, and other retirement-related issues.

If you're planning to retire at the end of this decade, you only have about 60 months left to squirrel money away and plan how you will enjoy your golden years. As lovely as it sounds, entering the final lap before retirement can also be intimidating. At this point, it's all about planning and follow-through.

So for those this close to retirement, here's an overview of what you'll want to accomplish before leaving the workforce.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Assess your financial situation

Take a critical look at the current condition of your finances, including:

• Investments: Check how your investments are doing and determine whether you need to reallocate funds. For example, you may want to fine-tune your risk exposure, sell out of underperforming holdings, or move into dividend-paying stocks.
• Debt: Pay off high-interest debt, such as credit cards and personal loans. This will not only reduce your monthly expenses but also increase your chances of getting to do what you want in retirement.

Create a post-retirement budget

It may seem silly to plan for a future when you don't know exactly how much to budget, but do your best to estimate. Based on those estimates, build a post-retirement budget that you believe you can live with. It may help if you:

• Do a lifestyle assessment: Consider the lifestyle you want in retirement. If you plan to spend time with family, visit friends, and enjoy plenty of fishing, your expenses will likely be lower than if you dream of traveling the world. The lifestyle you wish to lead will help inform your budgeting decisions.
• Identify necessities: Decide in advance which expenses are flexible. For example, healthcare costs may be fixed, but how much you spend dining out or buying gifts is flexible. Determining what you can live without could make cuts a little easier if you have a particularly expensive month, or weak market conditions mean you don't want to take money from your retirement account while the value of your assets is down.

Maximize contributions to retirement accounts

Now is the ideal time to max out your contributions to retirement accounts. Once these five years have passed, you may not have another opportunity.

Let's say you're already maxing out a 401(k) at work. If you haven't already, add an IRA to the mix. And if you have access to a health savings account (HSA), take full advantage of it. Unlike a flexible spending account (FSA), the funds in an HSA roll over yearly, allowing you to take what's left into retirement.

Familiarize yourself with healthcare options

According to Vanguard, the average non-smoking retiree with no chronic conditions is considered low risk and spends about $3,400 annually on healthcare. In contrast, a smoker with two or more chronic conditions can expect to pay approximately $7,500 annually. Your final tab could be higher or lower depending on where you live, the type of Medicare plan you choose, and inflation.

One way to understand how much you'll pay for healthcare is to familiarize yourself with the different Medicare plans and the required out-of-pocket costs once you retire.

Become an expert on what you can expect from Social Security

Whether you're collecting retirement benefits based on your earnings, collecting survivor benefits, or claiming spousal benefits, create a free account at my Social Security. There, you can learn precisely how much you're currently eligible to receive and how much you'll be eligible for in five years.

Don't go it alone

If you're not already working with a financial advisor, consider finding one who is a fiduciary. A fiduciary is legally obligated to look out for your best interest rather than their own. For example, they can't steer you toward a specific investment only to gain a commission.

You don't have to commit to a financial advisor, either. If all you need is an extra set of eyes to look at your portfolio, hire an advisor willing to work by the hour or for a flat fee.

As retirement draws nearer, you undoubtedly have a lot to consider. Take your time, be strategic, and if possible, enjoy the process.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

Key Points

• Depending on the rules associated with your retirement plan, you may be able to delay taking RMDs.

• Check with your plan administrator to ensure that it includes the still-working exception.

• You may want to consider the tax implications of waiting to take RMDs.

RMD stands for a required minimum distribution, the amount of money you must start taking from your retirement accounts by April 1 of the year following the one when you turn 73 (or 75 if you were born in 1960 or later).

While some retirees count on their RMDs to cover expenses, others find they don't have an immediate use for the funds. However, RMDs are mandatory, and penalties apply to those who don't take them as required.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

However, if your retirement plan includes continuing to work, you may be eligible for the "still working" exception. Here's what you need to know.

Eligibility

To be eligible for the still-working exception, you must:

• Be actively employed by the business that sponsors your plan.
• Not own more than 5% of the business sponsoring the plan.
• Be contributing to a plan that has formally elected to include the still-working exception.

When retirement savings are from another employer-sponsored plan

Let's say you change jobs in your 50s, going to work for John's Battery Emporium. But while working for another company before that, you built a 401(k) worth $150,000. At age 73, you're going strong and continue to work for John's Battery Emporium, glad that your retirement savings can continue to grow.

However, you may be unable to postpone RMDs from a prior employer. Typically, you must take the distributions from any retirement funds invested through a former employer's plan at your normal RMD age. Check with the plan administrators at your current and former employers to ensure you're following the rules applicable to those specific plans.

The potential tax implications

Allowing your retirement account to grow with the still-working exemption may be the ideal option, but it's essential to consider the tax implications. Since you'll begin taking RMDs later, they will be larger than they would have been if you had taken them at the traditional age.

This is due to a higher life-expectancy factor. The larger the RMD, the higher your adjusted gross income -- and the more you'll owe in taxes.

Before deciding whether to use the still-working exemption, it might be wise to meet with a financial advisor or tax professional to determine if it's your best course of action. RMD rules and tax consequences can be complex, and there's no harm in asking a professional to offer insight.

A few details

The still-working exception includes several easy-to-overlook details. For example:

• In most cases, you should still be able to contribute to your employer's qualified retirement plan, no matter how old you are. You may also contribute to a traditional or Roth IRA if you meet income limits.
• The still-working exception does not apply to IRAs. If you've reached the age at which you're required to take RMDs, you'll have to take them from a traditional IRA. Roth IRAs have no RMD requirements.
• Oddly, nothing in the tax code covers the exact amount of time you must work to constitute "still working." This suggests you could work one day a week and still meet the requirements to delay taking RMDs. Again, speak with your plan administrator before deciding.

RMDs are mandatory, but it's good to know you may have another choice if you're still working and would prefer to wait. Your best bet is to speak with your plan administrator to see if waiting is possible and consider meeting with a financial advisor or tax specialist before deciding which option will benefit you most.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

If, historically, you've been the lower-earning spouse, you may plan to claim spousal Social Security benefits. As long as you wait until your full retirement age (FRA) to claim them, spousal benefits can provide you with Social Security benefits of up to 50% of the amount your spouse is scheduled to receive at FRA.

If you're not quite sure if you qualify, here's how you can know for certain.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Marriage requirement

You must be legally married to someone who has earned enough work credits to be eligible for Social Security benefits or be divorced from an eligible recipient (more on this in a moment). You must be married for at least one year before applying for benefits. If your spouse is deceased, you must have been married for at least nine months before their death.

Divorce

If you're divorced, you may still qualify for spousal benefits based on your ex's work record. To qualify, the marriage must have lasted at least 10 years, and your ex-spouse must be eligible for Social Security benefits. In addition, you must be currently unmarried (it's OK if your last marriage ended in divorce).

Spouse's situation

Your spouse must be eligible for benefits, either due to earning enough work credits or by being retired, disabled, or deceased. For you to collect spousal benefits, your spouse must have applied for their own Social Security benefits.

Age requirement

If your spouse has already applied for benefits, you can apply for yours as early as age 62. However, since the full retirement age is typically between 66 and 67, claiming benefits at age 62 is considered early, and your monthly benefits will be permanently reduced. There are a couple of exceptions to this rule. You can qualify for spousal benefits at any age if:

• You are caring for a child under the age of 16.
• You are caring for a disabled child, and that child is entitled to receive benefits based on your spouse's work record.

Same-sex spouses (and ex-spouses)

The rules and benefits awarded are the same for same-sex spouses as for any other married couple due to the Supreme Court's 2015 decision recognizing marriage equality.

Depending on the state in which you live, you may qualify for benefits if you are (or were) a registered domestic partner or in a civil union or common-law marriage. While you may feel as though you have to jump through hoops, it can be beneficial to work with the Social Security Administration (SSA) to determine which laws apply in your state.

Helpful hints

If applying for Social Security spousal benefits seems a little intimidating, it may help to keep these tips in mind:

• The application process is not complicated. You can apply online, by phone, or in person at your local SSA office.
• Have your marriage certificate and other relevant documents ready to streamline the application process.
• Before deciding when to claim benefits, consider your health, family history of life expectancy, and how much longer you wish to work. The right time to claim often comes down to how long you need the money you've saved for retirement to last.

If you still feel like you're in your 20s or 30s, applying for Social Security benefits can seem a bit surreal. However, for anyone fortunate enough to live long enough, the day does eventually arrive. When it does, your goal is to ensure you receive the largest monthly benefit possible.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

As Elon Musk took a figurative chainsaw to the Social Security Administration earlier this year, there were those, like U.S. Rep. John B. Larson (D-Connecticut), who suspect the move had a lot to do with a desire to privatize Social Security.

Social Security privatization refers to transforming the current Social Security system, primarily a government-run program, into a system that allows Americans to invest their Social Security contributions into private accounts rather than paying into the federal program.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

The challenge

If you've ever looked at a paycheck and wondered what FICA stands for, it's the Federal Insurance Contributions Act. Of your gross wages, 6.2% goes into FICA to pay for Social Security and another 1.45% goes toward covering Medicare. Your employer matches both amounts, resulting in a total contribution of 15.3% of your wages.

Contributions made today support benefits for retirees, people with disabilities, and survivors of workers who have died. Think of it as today's employees helping fund the benefits of today's retirees. Since Social Security was first established in 1935, the understanding has been that each generation of retirees will be supported by younger workers still on the job.

A perfect storm of demographic changes in the United States put the Social Security system in a vulnerable position. Between the declining fertility rate and increased life expectancies, there are fewer workers to support an ever-growing group of retirees. As of this year, 12% of the total population is 65 or older. By 2080, it will be 23%.

In other words, the worker-to-beneficiary ratio is expected to drop dramatically, potentially impacting the SSA's ability to fulfill promised benefit payments.

A move away from FICA?

Among the proposals being made is the suggestion that Americans retain the 6.2% of their wages currently allocated toward FICA. Instead, they can invest it in private investment vehicles and decide how the money should be allocated.

Supporters of Social Security privatization argue that the change would give individuals greater control over their retirement savings and potentially allow them to earn returns higher than those provided by the current system's fixed benefits. They also see it as a way to reduce the financial burden on the federal government.

On the other side are those who worry that some Americans may not have the financial literacy or resources to manage investments on their own. Not everyone has experience managing assets, and it's concerning to think about throwing millions of people into the investment pool who may never have learned to manage their finances effectively.

Another concern involves what happens to those who spend years investing for retirement only to hit a string of bad luck. That may mean making bad investment choices or even facing losses due to uncontrollable setbacks, like a recession or bear market. Opponents worry about what will happen to those who hit retirement age with little money put away through no fault of their own, and point out that the current Social Security system offers fixed benefits that retirees can count on.

Countless issues to work through

Even if Congress were able to come to a consensus and privatize Social Security, there are thorny issues that would need to be managed. For example:

• What would be done for those who enter retirement with inadequate savings?
• How would SSA manage the transition costs of shifting to a privatized system while also funding benefits for existing Social Security recipients?
• Would lower-income workers be at a disadvantage, both in terms of having enough money to invest and less access to financial professionals who can teach them the ropes of investing?

Partial privatization?

Some supporters of Social Security privatization suggest allowing workers to invest a portion of their current Social Security contributions in private accounts, with the remainder allocated to the traditional pay-as-you-go system. While this model would lower the Social Security benefits earned by workers who choose this path, they would have a safety net of some sort to look forward to in retirement.

Given how difficult it can be to get Congress to agree on anything, there's no doubt that deciding to upend the entire Social Security system will be an uphill (and long-fought) battle.

In the meantime, the more immediate goal is to find a way to shore up the current system so that retirees will receive every dollar they've been promised.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

If you're a new investor, you have several decisions to make. For example, you must determine where to invest. Ideally, you want an investment vehicle that allows your money to grow steadily over time. But is that a Roth IRA or a 401(k)? Here, we'll compare the two and help you determine which one best meets your needs.

The best features of a Roth IRA

Each retirement plan has its own list of advantages. Here's what a Roth IRA has going for it.

• Tax-free withdrawals: With a Roth IRA, you make all contributions with after-tax dollars (in other words, on money you've already paid taxes on). Because a Roth is funded with after-tax dollars, you don't have to pay taxes on the money again when you make withdrawals in retirement. Not having to pay taxes when you're on a fixed budget is a real perk.
• Flexibility: While you would have to pay a penalty for withdrawing contributions (not earnings) from most retirement accounts before a certain age, the same is not true with a Roth IRA. You can withdraw contributions at any time without penalty.
• Investment options: When comparing the two, Roth IRAs typically offer a wider range of investment options than most employer-sponsored plans, such as 401(k)s.
• No required minimum distributions (RMDs): Unlike other types of retirement plans, Roth IRAs don't require you to take distributions. You can make withdrawals as needed. If you prefer, you can allow your savings to remain in the account and grow tax-free for even longer.

The best features of a 401(k)

• You can save more: 401(k) plans generally allow for higher annual contributions than Roth IRAs, allowing you to build your nest egg at a faster clip.
• Employer matching: Many employers offer to match a portion of your contribution each month, a move that can dramatically boost your savings.
• Lower taxes: Most 401(k) contributions are made with pre-tax dollars, meaning your contributions are deducted from your annual adjusted gross income (AGI). The ability to avoid taxes during your prime earning years is an advantage if you expect to earn more while you're working than in retirement.
• Automatic deductions: The fact that contributions are deducted directly from your paycheck makes it easier to save consistently.

The less attractive side of Roth IRAs

Few financial products can be called perfect. Here are some disadvantages associated with Roth IRAs.

• Contribution limits: You can contribute much less to a Roth IRA annually than to a 401(k). Let's say you're in your 40s and have an AGI under $150,000 (if you're single) or an AGI under $236,000 (if you're married, filing jointly). The most you can contribute to a Roth IRA this year is $7,000. If you are over 50, you can make an additional catch-up contribution of $1,000, for a total contribution of $8,000.
  
  By contrast, the 401(k) contribution limit for 2025 is $23,500. If you're aged 50 to 59 or 64 or older, you can pitch in an additional $7,500 in catch-up contributions. And beginning this year, if you're between 60 and 73, your catch-up contribution can be as much as $11,250. In short, a 401(k) allows you to contribute anywhere from $23,500 to $34,750, depending on your age.
• Income limits: If you're a high earner, you may be ineligible to contribute to a Roth IRA.
• Must wait for tax benefits: Since you're paying taxes on the funds before they're contributed, you don't receive an immediate tax benefit with a Roth IRA.

The less attractive side of 401(k)s

Again, it's tough to be perfect. Here's the downside of 401(k)s.

• Limited investment options: 401(k)s typically offer a limited selection of investment options compared to IRAs or brokerage accounts. Limited investment options mean less ability to diversify your portfolio.
• Sneaky fees and expenses: 401(k)s come with investment management fees and administrative costs that can eat into your returns over time. Worse, if you feel rushed to sign up for an employer-sponsored 401(k), you may not take the time needed to familiarize yourself with how much you're paying in fees and expenses.
• Withdrawal restrictions: It can be a challenge to access funds from a 401(k) in the event of an emergency. That's because withdrawals made before age 59 1/2 typically incur a 10% penalty in addition to income taxes at your ordinary tax rate.
• RMDs: Beginning at age 73 (or 75 if you were born in 1960 or later), you must begin taking RMDs from your 401(k), even if you don't need the funds to cover bills. It's at that time that you'll owe taxes on the amount withdrawn. While it's nice to get a tax break while contributing to a 401(k), the taxman eventually wants his piece of the pie.

The good news is this: Choosing between a Roth IRA and a 401(k) is not an all-or-nothing scenario. There's no rule saying you can't invest in both, and that may be precisely what you decide to do. In the meantime, how nice is it to know you have options?

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

Required minimum distributions (RMDs) are the minimum amounts you must withdraw annually from certain retirement accounts, like traditional IRAs and 401(k)s. They may not be fun, but they are necessary.

For many retirees, RMDs begin at age 73. However, if you were born in 1960 or later, you have until age 75 to start RMD withdrawals. RMD guidelines are stringent and have changed over the years, making it no surprise that many of us make an RMD-related mistake from time to time.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Here are some of the most common -- so you can hopefully avoid them.

1. Missing the all-important deadline

Your first RMD deadline is April 1 of the year after you turn 73. So, if you're turning 73 this year, your first deadline is April 1, 2026. Subsequent RMDs must be taken care of by Dec. 31, each year.

2. Withdrawing the wrong amount

Withdrawing the wrong amount can end up being an expensive mistake. For example, if your annual RMD is $50,000 and you accidentally withdraw $40,000 instead, your withdrawal is $10,000 short. The IRS will impose a 25% excise tax on the amount not withdrawn (in this case, that would be $2,500). However, if you correct the mistake by withdrawing the required amount within two years, the IRS penalty drops to 10% ($1,000).

Note that there may be exceptions. Let's say your reason for failing to take an RMD was because you were seriously ill, a spouse died, or your house burned down, or your accountant (who normally takes care of the issue) fled the country. That may be considered a "reasonable error." If that's the case, file an IRS Form 5329 and request a waiver.

3. Overlooking tax implications

While an RMD sets the minimum amount of money you must withdraw, you can take more if needed. However, don't forget that RMDs count as taxable income. Before you decide for sure how much you're going to withdraw, make sure you know if it will knock you into a higher tax bracket. Use that information to deterine if you want to scale back on how much you're withdrawing, or move ahead.

4. Failing to consolidate accounts

If you have multiple retirement accounts, RMDs need to be calculated for each account separately. To calculate RMDs for each account, you'll need to:

• Determine the balance for each account as of Dec. 31 of the previous year.
• Divide that balance by the appropriate IRS life expectancy divisor (as published online).
• For IRAs, you can calculate each RMD separately but withdraw the total RMD from one or a combination of the IRAs.
• For 401(k)s and other defined contribution plans, you must take RMDs separately from each account.

5. Having insufficient funds

While you may have more than enough money in your accounts to cover your RMD, that doesn't mean each of those accounts can easily be liquidated or traded for in-kind. For example, non-publicly traded assets can take months to liquidate and could cause you to miss your RMD deadline.

If your account holds assets that can't be quickly turned to cash, make sure you have enough cash or other suitable assets to cover the RMD -- just in case.

While it would be a stretch to compare an RMD to driving a car, the two do have one thing in common: The better you understand the rules, the more likely you are to do things right. No matter how complicated RMDs may seem at first, the more practice you get, the easier it will become.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

If you're between the ages of 60 and 63 by the end of the year, you're part of a rarefied (but lucky) group. Beginning this year, Section 603 of the SECURE Act 2.0 allows you to supercharge your retirement accounts by contributing even more -- but only if you're between 60 and 63. Once you hit age 64, the party is over, and you're back to making "regular" catch-up contributions.

Here's how the optional catch-up opportunity works.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Super catch-up

A super catch-up does not replace an ordinary catch-up. The opportunity to make super catch-ups may be new, but regular catch-up amounts have been around since 2001. As part of the Economic Growth and Tax Relief Reconciliation Act, Congress allowed people aged 50 and older to contribute more to their accounts, helping them reach their retirement savings goals.

These catch-up contributions were initially designed to circumvent established legal limits and limits imposed by individual retirement plans. For workers 50 and older, catch-up contributions have been helpful. After all, contributing an extra $7,500 (the maximum catch-up contribution to a 401(k), 403(b), and 457(b) plan can turbo-boost a retirement account.

Let's say someone doesn't start investing in a retirement plan until age 50. At that point, they peg out their 401(k) plan by contributing the full $23,500. With an average annual return of 7%, they have $590,432 in the account by the time they're 65. However, if they took advantage of the super catch-up between ages 60 and 63, they would have $693,381 by the end of their 65th year, over $100,000 more.

While the new super catch-up only applies to those aged 60, 61, 62, or 63, it is impressive. The following table offers a peek into how much more a person can invest for retirement during those crucial years.

Plan type	Contributor's Age in 2025	2025 Contribution Limit	2025 Catch-Up Contribution	Total Annual Contribution Limit
401(k), 403(b), governmental 457(b)	<49	$23,500	N/A	N/A
401(k), 403(b), governmental 457(b)	50-59, or 64 or older	$23,500	$7,500	$31,000
401(k), 403(b), governmental 457(b)	60-63	$23,500	$11,250	$34,750
SIMPLE IRA	<49	$16,500	N/A	N/A
SIMPLE IRA	50-59, or 64 or older	$16,500	$3,500	$20,000
SIMPLE IRA	60-63	$16,500	$5,250	$21,750

Data source: IRS.

A detail worth noting

Although the table shows both workplace retirement plans and SIMPLE IRAs, certain employees may not be able to make catch-up opportunities even if they're 50 or older. Typically, it's up to the employer and/or plan regulations to determine whether catch-up contributions are permitted. If a retirement plan doesn't allow for standard catch-ups, the new super catch-up will also not be available. Your best bet is to check with your plan administrator to ensure the plan you're enrolled in does allow for catch-ups.

Given the state of the U.S. economy, it's natural to wonder how your retirement savings will stack up. The best anyone can do at this point is to stay the course and, if possible, add every dollar to the accounts designed to support you in old age.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

When you've already cut your retirement budget to the bone, you don't need anyone telling you to dig a little deeper. That's not what this article is about. Instead, we'll look at things you can do today to begin cutting costs. It's up to you to decide whether to tuck the savings away in an emergency savings account, invest it, or save it for something fun.

While some of these ideas may be familiar to you, hopefully there will be a few you haven't yet considered.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

1. Embrace digital coupons and cashback apps

If your idea of couponing is spending hours at the kitchen table cutting coupons out of a newspaper circular, you're going to love the newer alternative. As the name suggests, digital coupons are redeemed digitally. There's nothing to cut and no paper coupons to lug around or sort through.

You can find money-saving coupons on retailers' websites, on social media, or by downloading an app to your smartphone. Here's a sample of some of the most popular digital coupon apps and what they can do for you:

• Honey: You can download the Honey app for either iOS or Android smartphones or add the Honey extension to your computer. Here's how it works: You shop online, and Honey automatically finds (and applies) the best coupon codes when you check out. Honey is a fan favorite due to its vast database that gives users access to coupons that may not be available elsewhere.
• Ibotta: Ibotta is a big player in cashback and is great for grocery shopping. First, you search for the deal on products or retailers you like, and once you find what you want, you add it to your list. After you've purchased items (either in-store or online), you submit your receipt directly through the app. If you have a store loyalty account, you can link it to Ibotta to automatically redeem eligible offers. As soon as your cashback balance reaches $20, you can transfer it to your bank, PayPal, or convert it to gift cards.
• Flipp: Another smartphone favorite is Flipp, and with good reason. It's a great money-saving tool, but nearly as important, it can save you valuable time. The Flipp app browses through digital flyers from more than 2,000 retailers to find the best deals near you on things you buy. With Flipp, there's a ton you can do with the touch of a button. For example, you can quickly find specific items or stores, or create a shopping list and let Flipp do the work by matching your items with deals. You can also clip digital coupons, which will be automatically added to a store loyalty card for use at checkout.

2. Take full advantage of memberships

If you have a membership to a big-box store like Sam's or Costco Wholesale, make sure to squeeze every last dollar from its benefits. For example, take advantage of low-cost optical care, office supplies, automotive work, and discounted auto insurance. If you're buying a new car, you may even be able to find a great deal by making the purchase through the store's auto purchasing program. Use pharmacy discounts and explore exclusive travel deals. Don't forget to check out specially priced tickets to local events.

If you want to make the most of your membership, consider getting together with a friend or family member and splitting the cost of bulk items. For example, neither of you may need a huge bag of lemons, but each of you could use half.

3. Negotiate monthly expenses

Many utility companies are willing to work with you on price. Give your utility providers a call to let them know you're a retiree and would like to remain a customer but need a price break. Here are some of the services frequently open to discounts:

• Cell and home phone
• Cable and satellite TV
• Home security
• Internet
• Some electric and natural gas companies

When a utility provider knows you have options, it's more likely to find a way to give you a discount. After all, it would rather provide a discount than lose a good customer. Negotiating consists of three steps:

1. Research other providers in your area to see if your current company is charging you too much.
2. Be polite and clearly explain your needs. Ask about discounts and promotions.
3. Be ready to switch. If you're unhappy with how negotiations turn out, make sure you can get a better deal elsewhere and make the switch.

4. Take advantage of designated senior shopping times

Several major retailers offer discount shopping times for seniors, such as:

• Target
• Walmart
• Aldi
• Dollar General
• BJ's Wholesale Club
• Safeway, Albertsons, and Vons
• HyVee
• Fred Meyer
• Piggly Wiggly
• Fresh Market
• Kohl's
• Michaels
• TJ Maxx
• Ross Dress for Less

Whether you save 10% or 20%, that's money in your pocket.

5. Don't be shy about using community resources when you need them

If you have trouble covering the cost of rent, making home repairs, or buying the nutritional food you need, look to nonprofits and community-based organizations in your area. If you're unsure where to start, contact 211.org, a service that connects people to essential community resources and services. Accessing 211 is easy: Simply dial 211, chat with a representative online, or browse local resources on the 211.org website.

If you're interested in money-saving strategies, it can be fun to add new ones to your list.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

Dana George has positions in Target and Walmart. The Motley Fool has positions in and recommends Costco Wholesale, PayPal, TJX Companies, Target, and Walmart. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short June 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy.

There's nothing easy about losing someone you care about, regardless of their relationship to you. Not only do you count on the important people in your life for emotional support, but you may also depend on them for financial support.

If you've lost someone and you're eligible for Social Security survivor benefits based on their work record, it's important to ensure you're receiving the support you deserve.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

The following questions are designed to help you determine if you're getting everything you're eligible for from your Social Security survivor benefits.

Who's eligible?

According to the Social Security Administration (SSA), the following may be eligible for benefits after the loss of a loved one:

Spouses and ex-spouses

It's possible you're eligible if:

• You're 60 or older or 50 to 59 with a disability, and
• You were married for at least nine months before your spouse passed away, and
• You didn't remarry before age 60 (age 50 if you're living with a disability)
• You're a surviving spouse (of any age) who's caring for the child of the deceased, that child has a disability and is receiving Social Security benefits
• You're an ex-spouse who was married to the deceased for at least 10 years

Exception: The SSA reports that a person may be eligible for Social Security survivor benefits regardless of age or how long they were married. The example given is of a person who is caring for the child of the deceased.

Children

The child of someone who's died could be eligible if they're unmarried and are:

• Age 17 and younger, or
• Ages 18 to 19 and in school (K-12) full-time, or
• Any age if they developed a disability at age 21 or younger

Exception: Under specific circumstances, the SSA also pays benefits to married children, stepchildren, adopted children, grandchildren, and step-grandchildren.

Adult children with a disability

• An adult child with a disability that began before their 22nd birthday may be eligible for benefits.

Dependent parents

• Parents aged 62 or older who were financially supported by their child who died might be eligible.

As you can see, rules regarding who's eligible for benefits aren't written in stone, and the SSA looks at applications on a case-by-case basis. If you or someone you care about may be eligible for survivor benefits, it's important to apply.

How long can a caretaker continue to receive benefits?

If you're caring for the child or children of a deceased spouse, you're eligible to receive benefits to care for them until they reach age 16. At 16, the children will receive benefits based on their deceased parent's work record until they are 18 or 19, as long as they remain unmarried. If a child is a full-time student in high school when they turn 18, they will continue to receive benefits until they graduate or until two months after turning 19. If a child is disabled, they will continue to receive benefits after 18.

What if the deceased hadn't filed for Social Security?

You're eligible to collect survivor benefits even if your spouse hadn't claimed Social Security at the time of their death. If that's the case, your benefits will typically be based on the amount they would have received at full retirement age.

What if the deceased postponed retirement?

Unlike the spouses of still-living Social Security recipients, if your spouse postponed retirement to collect a larger benefit, your benefit as the surviving spouse will also be based on the higher amount.

Can someone file for their ex-spouse's survivor benefits if they've remarried?

If an ex-spouse dies but you remarry before age 60 (or 50 if you're disabled), you can't receive survivor benefits based on their work record unless the most recent marriage ends. However, if you remarry at age 60 or later, you can continue to receive benefits based on your former spouse's record.

If you did remarry at 60 or later, check your current spouse's estimated benefits to learn if they're higher or lower than the benefits you're eligible to receive based on your deceased ex's record. You cannot receive both, so apply for the higher of the two amounts.

How do I know how much I'll receive?

If you're a surviving spouse, you may receive full benefits at your full retirement age. However, you can receive a reduced benefit amount as early as age 60. If you receive survivor benefits before your full retirement age, the benefit amount will be permanently reduced.

Exception: If you have a disability, benefits can start as early as age 50.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

If your spouse (or ex-spouse) is still alive and is due to receive Social Security benefits, it pays to look into how much you could receive. Here, we'll cover seven essential things you should know before filing for spousal Social Security benefits.

1. Basic eligibility rules

To be eligible to collect spousal Social Security benefits, the following must be true:

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

• Your spouse must have claimed their own retirement benefits. As you'll see below, this rule does not necessarily apply for ex-spouses.
• You're 62 or older. However, there is an exception to this rule. You can collect at any age if you care for a child under the age of 16 or who has a disability and is entitled to benefits based on your spouse's record.
• You haven't earned enough work credit for a Social Security retirement benefit of your own, or you have earned a retirement benefit of your own, but the spousal benefit would be higher.

2. How much you can expect to receive

Your benefit is 50% of the amount your spouse is eligible to receive when they reach full retirement age. For example, if your spouse is scheduled to receive $3,000 per month at full retirement age, your benefit would be $1,500.

If you decide to receive spousal benefits before you reach your full retirement age, your monthly benefit will be permanently reduced.

3. You can find the numbers you're looking for online

The Social Security Administration (SSA) makes all the facts, figures, and some of the services you're looking for available on their site. You only need to create a free and secure my Social Security account.

Here's a breakdown of what you can do with your my Social Security account:

• Get a personalized retirement benefit estimate
• Get proof that you don't receive benefits
• Check your application status
• Get your Social Security statement
• Request a replacement Social Security card
• Upload documents and submit online forms
• Set up or change direct deposit
• Get a Social Security 1099 (SSA-1099) form
• Print a benefit verification letter
• Change your address

4. Here's what happens if your spouse postpones taking Social Security

Let's say your spouse postpones taking Social Security until age 70 to earn delayed retirement credits and increase their monthly benefit. While they'll be collecting more in retirement, your maximum spousal benefit remains 50% of the amount they would have received if they'd retired at full retirement age.

5. What happens if your work record makes you eligible for benefits

If you're eligible for retirement benefits based on your own work record and spousal benefits, you'll need to apply for both. It's called "deemed filing" because once you apply for one of the two benefits, you're deemed to have applied for both. The SSA ensures that you receive the larger of the two benefit amounts.

Here's an example: One partner is eligible for a monthly retirement benefit of $1,500, and because their spouse is eligible to receive $4,000 at full retirement age, their spousal benefit would be $2,000. Since the spousal benefit is higher, that's the amount they receive.

According to the SSA, "If a spouse is eligible for a retirement benefit based on his or her own earnings, and if that benefit is higher than the spousal benefit, then we pay the retirement benefit. Otherwise, we pay the spousal benefit."

6. Divorced? Here's how to know you're still eligible for spousal benefits

Divorce doesn't necessarily mean you're no longer eligible for spousal benefits. Here's how to know you're eligible:

• You were married to your ex for at least 10 years.
• You're currently unmarried.
• You're at least 62.
• Your ex is currently receiving Social Security benefits, or they've reached retirement age and are eligible to receive benefits but have not applied. You can apply if you've been divorced for at least two years.
• If your ex has reached retirement age but hasn't applied for benefits, you can still apply if you've been divorced for two years or more.

7. You can apply online

Whether you're applying for your retirement benefits, a spouse's benefit, or both, the application can be completed online. If you're at least 61 years and 9 months old, visit the Social Security Administration's website to get started.

Planning for retirement is all about feathering your nest to the best of your ability. If collecting spousal Social Security benefits helps maximize your Social Security income, there's no question it's a win.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.