Ready to combine finances with your partner? You have options

July 1, 202411:43 AM ET

Andee Tagle

Joint bank account or separate? The approach you choose depends on you and your partner’s financial history and goals, says financial therapist Lindsay Bryan-Podvin.

If you’re in a serious romantic relationship, you and your partner may be thinking about how to combine your finances. Should you share a joint bank account? Keep your accounts separate? Do a combination of both? 

The path depends on you and your partner’s financial goals and history. So before you decide, have an open and honest conversation, says Lindsay Bryan-Podvin, financial therapist and author of The Financial Anxiety Solution — “ideally before relationship-changing events such as moving in together or purchasing a car together.” 

Talking about money can feel like awkward, but it can also strengthen relationships. “We’re deepening our connection. We’re dreaming ahead together and creating a plan,” she adds.

Bryan-Podvin talks to Life Kit about what it means to successfully merge your finances with your partner, the merits of each approach – and strategies for success. This conversation has been edited for length and clarity.

Sharing a joint bank account seems to come with a lot of benefits. One large-scale study from 2023 found that couples who put all their money into one pot tended to be happier. They stayed together longer than those who kept some or all of their money separate. Why do you think that is?

My hypothesis is that it decreases the likelihood of financial infidelity. One of the biggest issues couples argue about is the financial secrets that can happen when we have completely separate accounts. Maybe somebody is racking up a ton of credit card debt or taking out personal loans. Or maybe they don’t have a great credit score and aren’t working on improving it. [If you have a joint bank account], your partner is in [on these issues] from the beginning.

For this reason, you recommend that couples share a joint account. 

Having a fully joint account feels great because couples are able to spend and save and talk about that very openly.

You also like an approach that the financial community calls “theirs, mine and ours.” It’s an arrangement where couples have a joint account for shared expenses and individual accounts for personal expenses. 

“Theirs, mine, and ours” can work really well when the bulk of your money is shared. You [can use your joint account to] make sure your bills and rent are paid on time and save toward future goals together. But you each have a little bit of money to spend how you want without having to text your partner and say, “Hey, can I buy a new pair of shoes?” None of us want to feel like we are under the control of our partner, so having some financial autonomy is important.

Are there some situations where it might make sense to have separate accounts?

If you’ve experienced financial abuse or have seen someone steal someone else’s credit or identity, you might have very strong feelings about having to share your money with other people. Then it makes sense to keep your finances separate.

And I think it’s important for people who have had a divorce or separation to keep separate bank accounts or do “theirs, mine and ours” for financial protection [to avoid assets getting mixed up with court proceedings for example].

Is there such a thing as splitting everything 50-50 in a relationship?

This idea of splitting everything 50-50 makes sense in theory, but we just don’t live in a theoretical world. Even if you’re earning the same amount, it doesn’t necessarily mean your financial background is equal. One partner may have $150,000 in student loans, for example. And there will be times when one person is taking on more of the emotional labor or more of the household tasks.

So keeping all this in consideration is really important. I think about [a couple’s finances] as a big old soup. Everything goes into the pot and it all blends up together, and it’s really hard to know who gave what.

So among these three approaches — joint bank account, “theirs, mine and ours” and separate accounts — how do you figure out which approach is right for you? 

Have money conversations. Don’t just ask, “What’s your credit score? How much do you earn?” Also ask: “What were you taught about money? What are you proud of that you do financially? What are things you wish you were a little better at financially?” Get a sense of what matters to your partner so you have a clear understanding of their relationship with money.

Source: https://www.npr.org/2024/07/01/g-s1-7478/how-to-combine-finances-with-your-partner

16 Retirement Mistakes You Will Regret Forever

From saving too little to claiming Social Security too early, there are plenty of ways that current and future retirees can sabotage their golden years.

By Bob Niedt

last updated 21 June 2024

Contributions from

Erin Bendig

As more and more baby boomers start eyeing a happy retirement, thoughts turn from worry over the workday slog to concerns about how to fund the golden years.

How prepared are you? How much money do you really need to retire? Do you know the ins and outs of your pension (if you’re lucky enough to have one)? How about your 401(k), IRA and other retirement accounts that make up your nest egg? Do you have a good handle on when to claim Social Security benefits? 

These are some of the questions to contemplate as retirement approaches. But long before you punch out, make sure you’re making the right choices.

To help, we’ve compiled a list of the biggest retirement planning mistakes and how to avoid making them. Take a look to see if any sound familiar.

1. Relocating on a whim

The lure of warmer climates has long been the siren call of many who are approaching retirement. So, you’re cooking up a plan to retire in Florida, or maybe you’re considering relocating to one of the many places to retire near the beach. Our advice: Test the waters before you make a permanent move.

Too many folks have trudged off willy-nilly to what they thought was a dream destination only to find that it’s more akin to a nightmare. The pace of life is too slow, everyone is a stranger, and endless rounds of golf and walks on the beach can quickly grow tiresome. Well before your retirement date, spend extended vacation time in your anointed destination to get a feel for the people and lifestyle. This is especially true if you’re thinking about retiring abroad, where new languages, laws and customs can overwhelm even the hardiest retirees.

You can also check out some of our helpful articles to learn more about things you should know before retiring in Floridaretiring in Arizona or retiring in the Carolinas. And as these areas are getting more popular, you can also read about some of the longer-term challenges that might hit your pocketbook.

Once you do make the plunge, consider renting before buying. A couple I know circled Savannah, Ga., for their permanent retirement nest. But wisely, as it turned out, they decided to lease an apartment downtown for a year before building or buying a new home in the suburbs. Turns out the Deep South didn’t suit their Philadelphia get-it-done-now temperament. They instead joined the ranks of “halfback retirees” — people who head to the Deep South, find they don’t like it, and move halfway back toward their former home up north.

2. Falling for too-good-to-be-true offers

Hard work, careful planning and decades’ worth of wealth-building are the keys to a secure retirement. There are no shortcuts. Yet, Americans lose hundreds of millions of dollars a year to get-rich-quick and other scams, according to the FTC, as elder fraud runs rampant. My parents constantly receive calls on their landline from scammers trying to make them part with their hard-earned retirement dollars.

2.6 million consumers filed fraud reports in 2023, and $10 billion was lost in total to fraud, reports the FTC. This is a 14% increase over reported losses compared to 2022. Consumers reported losing the most money to investment scams.

States’ Attorney General offices and the FTC offer tips for spotting too-good-to-be-true offers. Tell-tale signs include guarantees of spectacular profits in a short time frame without risk; requests to wire money or pay a fee before you can receive a prize; or unnecessary demands to provide bank account and credit card numbers, Social Security numbers or other sensitive financial information. Also be wary of — in fact, run away from — anyone pressuring you to make an immediate decision or discouraging you from getting advice from an impartial third party.

What do you do if you suspect a scam? The FTC advises running the company or product name, along with “review,” “complaint” or “scam,” through Google or another search engine. You can also check with your local consumer protection office or your state attorney general to see if it has fielded any complaints. If it has, add yours to the list. Be sure to file a complaint with the FTC, too.

3. Planning to work indefinitely

Many baby boomers have every intention of staying on the job beyond age 65, either because they want to, they have to or they plan to maximize their Social Security checks. But that plan could backfire.

Consider this: 55% of workers expect to work after they “retire,” according to the Transamerica Center for Retirement Studies. Yet, you can’t count on being able to bring in a paycheck if you need it. While more than half of today’s workers plan to continue working in retirement, 19% of adults ages 65 and older are actually employed, according to Pew Research Center

You could be forced to stop working and retire early for any number of reasons. Health-related issues — either your own or those of a loved one — are a major factor. So, too, are employer-related issues such as downsizing, layoffs and buyouts. Failing to keep skills up to date is another reason older workers can struggle to get hired. The actionable advice: Assume the worst, and save early and often. Only 34% of baby boomers surveyed by Transamerica have a backup plan to replace retirement income if unable to continue working.

4. Putting off saving for retirement

The single biggest financial regret of Americans surveyed by Forbes was waiting too long to start saving for retirement. Not surprisingly, baby boomers expressed this regret at a much higher rate than younger respondents.

“Many people do not start to aggressively save for retirement until they reach their 40s or 50s,” says Ajay Kaisth, a certified financial planner with KAI Advisors in Princeton Junction, N.J. “The good news for these investors is that they may still have enough time to change their savings behavior and achieve their goals, but they will need to take action quickly and be extremely disciplined about their savings.”

Here’s how much you need to sock away monthly to build a $1 million nest egg by age 65, according to Dutch Point Credit Union. Assuming an annual interest rate of 8%, annual inflation rate of 2% and $0 in prior savings, you’d need to save $300 a month if you start at age 25; $700 monthly, starting at 35; $1,700, starting at 45; and $3,000, starting at 50.

Uncle Sam offers incentives to procrastinators. Once you turn 50, you can start making catch-up contributions to your retirement accounts. In 2024, that means older savers can contribute an extra $7,500 to a 401(k) on top of the standard $23,000. The catch-up amount for IRAs is $1,000 on top of the standard $7,000.

5. Claiming Social Security too early

You’re entitled to start taking retirement benefits at 62, but you might want to wait if you can afford it. Most financial planners recommend holding off at least until your full retirement age — 67 for anyone born after 1959 — before tapping Social Security. Waiting until 70 can be even better.

Let’s say your full retirement age, the point at which you would receive 100% of your benefit amount, is 67. If you claim Social Security at 62, your monthly check will be reduced by 30% for the rest of your life. But if you hold off, you’ll get an 8% boost in benefits each year between ages 67 and 70 thanks to delayed retirement credits. There are no additional retirement credits after you turn 70. Claiming strategies can differ for couples, widows and divorced spouses, so weigh your options and consult a professional if you need help.

“If you can live off your portfolio for a few years to delay claiming, do so,” says Natalie Colley, a financial analyst at Francis Financial in New York City. “Where else will you get guaranteed returns of 8% from the market?” Alternatively, stay on the job longer, if feasible, or start a side gig to help bridge the financial gap. There are plenty of interesting ways to earn extra cash these days.

6. Borrowing from your 401(k)

Taking a loan from your 401(k) retirement savings account can be tempting. After all, it’s your money. As long as your plan sponsor permits borrowing, you’ll usually have five years to pay it back with interest.

But short of an emergency, tapping your 401(k) is a bad idea. According to Meghan Murphy, a vice president at Fidelity Investments, you’re likely to reduce or suspend new contributions during the period you’re repaying the loan. That means you’re short-changing your retirement account for months or even years and sacrificing employer matches. You’re also missing out on the investment growth from the missed contributions and the cash that was borrowed.

”As you think about loans from retirement plans the first thing we say is there anywhere else you might be able to borrow from?” says Murphy. “We think through the importance of having an emergency fund. But, of course, if that’s not available, is there any other place that you’re able to draw from? Things you might want to think about is if it’s a medical emergency, do you have a health savings account that you might be able to take money from.”

What’s becoming more and more popular, says Murphy, is employees drawing money from stock plan options through their employer. “If you draw money from there there’s not necessarily a penalty associated with it or the requirement that you have to make payment on the loan directly through your paycheck.”

Another huge downside to borrowing from your retirement plan is the payback. Usually, loans are paid back to the fund over an up to five-year period. If you were to leave that employer before the loan is paid off, you’re obligated to pay it back in full within 60 to 90 days, says Murphy, or it becomes a taxable distribution. “And if you’re below age of 59 1/2, there’s now a 10% tax penalty associated with it.”

Keep in mind, too, that you’ll be paying the interest on that 401(k) loan with after-tax dollars — then paying taxes on those funds again when retirement rolls around. And if you leave your job, the loan usually must be paid back in as little as 30 days. Otherwise, it’s considered a distribution and taxed as income.

Before borrowing from a 401(k), explore other loan options. College tuition, for instance, can be covered with student loans and PLUS loans for parents. Major home repairs can be financed with a home equity line of credit (HELOC), though that comes with considerable risks.

7. Decluttering to the extreme

My parents are in their late-80s, early 90s and have been living in the same house for decades. In recent years they have started getting rid of a lot of the bric-a-brac they’ve accumulated. Their goal is to make it easier for my brother and I down the road when we inherit the home.

There hasn’t been much junk among the items they’ve parted with — save for the wall clock they gave me and swore it worked (it doesn’t). But there were also items my father wisely ran past his lawyer before dumping: Bookkeeping records from the business he owned for years. He was cleared.

Still, that’s a fair warning: Be careful about what you throw out in haste. Sentimental value aside, certain professionals including doctors, dentists, lawyers and accountants can be required by law to retain records for years after retirement. 

As for tax records, the IRS generally has three years to initiate an audit, but you might want to hold on to certain records including your actual returns indefinitely. The same goes for records related to the purchase and capital improvement of your home, purchases of stocks and funds in taxable investment accounts and contributions to retirement accounts (in particular nondeductible IRA contributions reported on IRS Form 8606). All can be used to determine the correct tax basis on assets to avoid paying more in taxes than you owe.

Plus, who knows? Maybe you have one of these 7 old things in your home that could be worth a fortune

8. Putting your kids first

Sure, you want your children to have the best — best education, best wedding, best everything. And if you can afford it, by all means, open your wallet. But footing the bill for private tuition and lavish nuptials at the expense of your own retirement savings could come back to haunt all of you.

As financial experts note, you cannot borrow for your retirement living. Instead, explore other avenues other than your 401(k) plan to help fund a child’s education. Parents and their kids should explore 529 plans, scholarships, grants, student loans and less expensive in-state schools in lieu of raiding the retirement nest egg. Another money-saving recommendation: community college for two years followed by a transfer to a four-year college. (There are many smart ways to save on weddings, too.)

No one plans to go broke in retirement, but it can happen for many reasons. One of the biggest reasons, of course, is not saving enough to begin with. If you’re not prudent now, you might end up being the one moving into your kid’s basement later.

9. Buying into a timeshare

It’s easy to see the appeal of a timeshare during retirement. Now that you’re free from the 9-to-5 grind, you can visit a favorite vacation spot more frequently. And if you get bored, simply swap for slots at other destinations within the time-share network. Great deal, right? Not always.

Buyers who don’t grasp the full financial implications of a time-share can quickly come to regret the purchase. In addition to thousands paid upfront, maintenance fees averaged $1170 in 2022, and special assessments can be levied for major renovations. There are also travel costs, which run high to vacation hotspots such as Hawaii, Mexico or the Bahamas.

And good luck if you develop buyer’s remorse. The real estate market is flush with used timeshares, which means you probably won’t get the price you want for yours — if you can sell it at all. Even if you do find a potential buyer, beware: The timeshare market is rife with scammers.

Want to get rid of a timeshare? Experts advise owners first to contact their time-share management company about resale options. If that leads nowhere, list your time-share for sale or rent on established websites such as RedWeek.com and Tug2.net. Alternatively, hire a reputable broker. The Licensed Timeshare Resale Brokers Association has an online directory of its members. If all else fails look into donating your time-share to charity for the tax write-off. But first, check with your tax adviser.

10. Avoiding the stock market

Shying away from stocks because they seem too risky is one of the biggest mistakes investors can make when saving for retirement. True, the market has plenty of ups and downs, but since 1926 stocks have returned an average of about 10% a year. Bonds, CD rates, bank accounts and mattresses don’t come close.

“Conventional wisdom may indicate the stock market is ‘risky’ and therefore should be avoided if your goal is to keep your money safe,” says Elizabeth Muldowney, a financial adviser with Savant Capital Management in Rockford, Ill. “However, this comes at the expense of low returns and, in fact, you have not eliminated your risk by avoiding the stock market, but rather shifted your risk to the possibility of your money not keeping up with inflation.”

We favor low-cost mutual funds and exchange-traded funds (ETFs) because they offer an affordable way to own a piece of hundreds or even thousands of companies without having to buy individual stocks. And don’t even think about retiring your stock portfolio once you reach retirement age, says Murphy, of Fidelity Investments. Nest eggs need to keep growing to finance a retirement that might last 30 years. You do, however, need to ratchet down risk as you age by gradually reducing your exposure to stocks.

11. Ignoring long-term care

We all want to believe we’ll stay healthy and motoring long into our retirement years. A good diet, plenty of exercise and regular medical check-ups help. But even the hardiest of retirees can fall ill, and even without a serious illness, time will take its inevitable toll on mind and body as you progress through your 70s, 80s and 90s.

When the day arrives that you or a loved one does require long-term care, be prepared for sticker shockAccording to Genworth, in 2023 the national median cost of an assisted living facility was $5,350 a month; a private room in a nursing home, $9,733 a month. Projected numbers for 2024 show a median cost of $5,511 a month for an assisted living facility and $10,025 for a private room in a nursing home. 

Even a sizable retirement nest egg can be wiped out in a hurry. And remember, Medicare doesn’t cover most of the costs associated with long-term care.

There are options for funding long-term care, but they’re pricey. If you can afford the high premiums, consider long-term care insurance, which covers some but not necessarily all nursing home costs. The American Association for Long-Term Care Insurance found that for a policy offering $165,000 of total lifetime coverage, a 55-year-old single male would pay an average annual premium of $900. At age 60, it would cost $1,200. A 55-year-old single woman would pay $1500, while a 60-year-old woman would pay $1,960.

You can also look into purchasing a qualified longevity annuity contract, known as a QLAC. In exchange for investing a hefty lump sum upfront when you’re younger, the QLAC will pay out a steady stream of income for the rest of your life once you hit a certain age, typically 85.

12. Neglecting estate planning

Estate planning isn’t just for the wealthy. Even if your assets are modest — perhaps just a car, a home and a bank account — you still want to have a valid will to specify who gets what and who will be in charge of dispersing your money and possessions (a.k.a. the executor). Die without a will and your estate is subject to your state’s probate laws. Not only could your assets get tied up in court, possibly creating financial hardship for your heirs, but absent a will a judge might ultimately award your assets to an unintended party such as an estranged spouse or a relative you never liked.

Retirement is an ideal time to review existing estate planning documents and create the ones you’ve long ignored. Start with the aforementioned will. You might have had one drawn up years ago when your kids were young. Decades later, what’s changed? Are you divorced? Remarried? Richer? Poorer? Maybe you prefer for your grandkids or a favorite charity to inherit what you originally earmarked for your now-grown children? Remember, too, that some assets, such as retirement accounts, fall outside your will. Be sure the beneficiaries you have on file with financial institutions are up to date.

A will is just the start. You should also draft a durable power of attorney that names someone to manage your financial affairs if you need help or become incapacitated. And your health-care wishes should come into sharper focus now that you’re older. Advance directives such as a living will, which spells out the treatments you do and don’t want if you become seriously ill, and a power of attorney for health care, which names someone to make medical decisions for you if you can’t make them yourself, are essential.

13. Borrowing against your home

It’s tempting for retirees who are house-rich but cash-poor to tap the equity that’s built up in a home. This is especially true if the mortgage is paid off and the property has appreciated substantially in value. But tempting as it might be, think hard before taking on more debt and monthly payments at precisely the time when you’ve stopped working and your income is fixed.

Rather than borrow against the value of your home, explore ways to lower your housing costs. Start with downsizing. Sell your current home, buy a smaller place in the same area, and put your profits toward living expenses. For the ultimate in downsizing, consider a tiny home for retirement — seriously. Tiny homes are inexpensive, upkeep is easy and utility bills are low. Retiring in an RV and traveling has its advantages, too. If you’re willing to relocate, sell and move to a cheaper city that’s well-suited for retirees. Or, stay put and find a roommate. The rental income will supplement your Social Security and savings.

If you must tap your home equity, tread carefully. If you still have a mortgage, look into a cashout refi. Just try to keep the length of the refinanced mortgage to a minimum to avoid making repayments deep into retirement. Otherwise, investigate a home equity loan or home equity line of credit (HELOC). However, be forewarned that under tax law you won’t be able to deduct the interest on these loans unless the money is used to substantially improve your home, such as replacing the roof. In the past, the interest could be deducted even if you spent the money on, say, a vacation or a new car. 

Yet another option for retirees is a reverse mortgage. You’ll receive a lump sum of money or access to a line of credit that in most cases doesn’t need to be repaid until you or your heirs sell the home.

14. Failing to plan how you’ll fill your free time

A friend of mine had a nice government job. One of the perks was early retirement. He went for it. But not long after, he informed me he was going back to his old position, albeit two days a week. “There’s only so many movies to see alone during the day in an empty theater,” he said. “That got old fast.”

Our careers provide structure to our lives five days a week, and weekends can be consumed by chores and rest. The cycle starts all over again Monday morning. But once you leave your job for good, there’s suddenly a lot of time to fill. Have you truly thought through how you will fill it in retirement?

It’s critical to plan your free time in retirement as thoroughly as you plan your finances. How about a part-time job doing something you love? My happy place the summer between high school and college was working at a theme park in New Jersey. No one was unhappy there. I’ve always kept “theme park job in retirement” in my back pocket. You could also take a casual hobby to new levels now that you have the time to devote to it. 

Or, you could return to school. Many public colleges and universities (and some private ones) offer free (or cheap) college for retirees. Check a school’s website for details or call the registrar’s office.

15. Downsizing your 401(k) contributions while you’re working

Unusually large tax bills in our household forced us to scale back on contributions to our retirement savings last year. That’s an area to tread lightly in, financial experts note.

”If [people are] thinking of decreasing how much they are currently saving, make sure you choose very carefully and ensure you’re taking advantage of any 401(k) employer match that you might be eligible for, and, save at least enough to get that match,” says Murphy. “That’s money that your employer is willing to give you, and we wouldn’t want people to miss out on that benefit.”

Many retirement plans offer the option of automatically increasing your savings rate. “Check that box that you increase at some point in the future,” says Murphy. “That might be helpful to make sure you get back on track with your retirement savings.”

16. Ignoring your target date

Half of 401(k) savers are 100% invested in a target date fund, says Murphy of Fidelity Investments. That target date is an approximation of when you are going to retire. These funds become more conservative the closer that date approaches. That means the other 50% are investing on their own and may not be keeping a close eye on how much equity exposure they have, notes Murphy.

”So make sure you understand how much equity you’re holding, how much investment risk you’re willing to take on, and if those are two things you’re uncomfortable making decisions about, there are solutions within those retirement plans: A target date fund, a professionally managed account that could bring peace of mind to the process,” says Murphy.

But things change, too. You may want to retire earlier than the target date fund — or later. Murphy encourages savers to check in on their funds at least annually.

Source: https://www.kiplinger.com/slideshow/retirement/t047-s001-retirement-mistakes-you-will-regret-forever/index.html

Taking Social Security? Six Questions to Ask Before You Act

By Coryanne Hicks

Published 22 June 2024

Before taking Social Security benefits, consider your timing. Start too early and you could miss out on additional benefits. But wait too late and you could end up draining other assets that would have been better left to grow. 

There’s a lot to know about Social Security in order to get it just right, and many people don’t know the ins and outs. In fact, 44% of Gen Z respondents said they didn’t know what Social Security is or what it does at all in a recent survey by Atticus

So here, we take a look at what to consider before taking Social Security, so you can make a holistic, informed decision. 

1. Taking Social Security? Watch out for three birthdays

There are three important birthdays to pay attention to when thinking about taking Social Security:

  • 62: This is the earliest age you can begin receiving a benefit, but only a reduced amount.
  • 66-67: Your full retirement age when you become eligible for your full benefit.
  • 70: The age when your benefits stop increasing if you delay claiming.

Age isn’t the only factor in determining when you should take Social Security, either. Other considerations include your and your family’s health, longevity, spousal benefits options and what other financial assets you have, says James Hutchens, a senior wealth adviser at Northern Trust.

“The age that you start to take Social Security, combined with your life expectancy, can lead to a difference of hundreds of thousands of dollars over your lifetime, or potentially your spouse’s lifetime,” Hutchens says.

You’ll also want to consider your other retirement income. If delaying Social Security will mean you need to withdraw from other assets, it may make more sense to start your benefits. This will let you keep your other assets invested.

2. What is the full retirement age?

Social Security full retirement age, or FRA, is the age at which you become eligible to receive 100% of your benefit. This age is based on the year you were born and ranges from 66 to 67. 

If you wait to claim Social Security benefits until after your FRA, you’ll receive a larger monthly payment. Benefits increase by 8% for each year you delay taking Social Security after full retirement age. Once you reach age 70, your benefits stop increasing, so don’t keep delaying after that.

3. Can I take Social Security benefits early?

While you can begin taking Social Security as early as age 62, your benefit will be reduced by 25% to 30% if you do. Your spouse’s benefit could also be reduced. 

That said, there are still good reasons to take Social Security early despite this reduction. For example, if you’re in poor health or want to retire early.

You become eligible to receive 100% of your benefit at your Social Security full retirement age. This age is based on the year you were born and ranges from 66 to 67. If you delay claiming, your Social Security benefit will increase by 8% for each year you wait until you reach age 70.

4. When should I take benefits?

Deciding when to take Social Security involves a lot of moving parts. One strategy to picking the optimal date is to use your break-even point. This is the age you must reach to make waiting to claim until full retirement age worthwhile. 

Some may not think they’ll live long enough to make delaying worthwhile, in which case claiming early is the best route. But it’s also important to factor your spouse into the equation if you’re married.

5. What if I am married?

Married couples have more options for taking Social Security. As long as you and your spouse have been married for at least one year, you can receive a spousal benefit or your own benefit. Exceptions to the one-year rule are if you’re parenting your spouse’s child or are or were entitled to benefits under the Railroad Retirement Act the month before you got married.

One spouse can claim a benefit without impacting the other spouse’s benefit amount. However, claiming Social Security early also reduces the spousal benefit.

If you apply for both a spousal benefit and your own, you’ll receive the higher of the two. Unfortunately, you cannot file for a spousal benefit and delay your own benefit if you turned age 62 on or after January 2, 2016.

6. Can I change my mind on Social Security?

The good news is that you can change your mind after you start taking Social Security. You can stop and restart Social Security benefits. Doing so may enable you to increase your benefit as if you had delayed taking it initially.

How you go about this will depend on the length of time you’ve been receiving benefits. You may need to repay all of the benefits you and anyone who claimed benefits under your record received. You may also need to wait to press pause on your benefit until you reach your FRA.

You should also be aware that stopping your Social Security will mean you need to pay your Medicare Part B premiums directly. 

The bottom line

When to start taking Social Security is a question every retiree faces. The decision impacts not only your financial future, but also that of anyone who claims a benefit under your record. It’s a lot of responsibility to rest on your own shoulders, which is why the best strategy may be to work with a financial professional who can help you weigh all your options.

Source: https://www.kiplinger.com/retirement/social-security/taking-social-security-six-questions-to-ask-before-you-act