By The Galecki Financial Management Team
Understanding the intricacies of Social Security planning can be challenging, especially for women experiencing unique financial situations. Whether you’re single, divorced, or widowed, optimizing your retirement income requires knowledgeable decision-making and strategic financial planning.
In this article, we look at the details of Social Security payouts for women, providing potential scenarios and valuable insights to help you pursue a solid financial future.
For Single Women
Let’s start with single women. It could be tempting to file for Social Security immediately when eligible at age 62. Very few women wait until they reach Full Retirement Age (FRA), and even fewer wait until age 70. It might make sense to wait, though, because the payout amount grows by 8% a year from Full Retirement Age to age 70, plus cost-of-living increases for inflation.
For instance, imagine your full retirement age (FRA) is 67 and your monthly payment is estimated to be $2,000. The chart below shows your estimated payout for each month if you started collecting at age 62, age 67, and age 70.
| If you file your claim when you’re… | your monthly payout would be … |
| 62 | $1,400 |
| 67 | $2,000 |
| 70 | $2,480 |
The data above is for illustrative purposes only.
You can see that your monthly payout rises significantly if you wait until age 70, which could result in more dollars for you to use to pay expenses, invest, or even gift during retirement.
It’s not enough, though, to base your decision entirely on your age at the time you file your claim. You need to also consider other factors like your residence, circumstances, and state of health.
Customizing your claiming strategy to your situation is essential, and a professional advisor can help you consider all relevant factors.
For Divorced Women
It might surprise you to learn that divorcees who were married for at least 10 years are eligible to receive their ex-spouse’s payouts. You must be at least age 62 and unmarried. You can receive 50% of your ex’s payouts or 100% of your own, whichever is more.
You don’t have to disclose to your ex if you’re receiving spousal payments, nor will they be notified by Social Security.
For Widows
If your spouse dies, you’re entitled to 100% of their payout. There is one exception to the rule. If you get remarried prior to age 60, you won’t be eligible for your deceased spouse’s Social Security payouts.
Just like with regular Social Security payments, if you claim them before you reach FRA, you’ll get a reduced amount. However, you don’t have to wait until you’re 70 years old to receive the full amount, unlike normal payouts.
Based on your circumstances, the following chart illustrates the proportion of survivor payments you’d receive:
| Type of Widow | Pre-FRA Payout Amount | FRA Payout Amount |
| Widow | 71.5% to 99% (starting at age 60) | 100% |
| Disabled Widow | 71.5% (starting at age 50) | 100% |
| Widow With Child Under Age 16 | 75% (at any age) | 100% |
The data above is for illustrative purposes only.
Take the First Step
Because it’s complex with many moving parts, dealing with Social Security on your own is a challenge. Instead, working with a financial professional can help you gain clarity and even boost your payments.
Our team at Galecki Financial Management would be happy to assist you in weighing your alternatives and selecting a claim strategy that’s tailored to your specific circumstances. We are available to support you throughout your entire financial journey, including Social Security planning.
To get started, schedule a meeting with us by calling (260) 436-8525 or emailing [email protected].
About Galecki Financial Management
At Galecki Financial Management, we help individuals and families confidently pursue their financial goals. We’re anything but a business-as-usual wealth management firm. We’re different. Friendly. Casual. And really good listeners. Indeed, that’s a big part of what makes us different. Everything we do is based on what we hear from you, because our experienced team of professionals specializes in comprehensive financial planning, cash flow analysis, IRA rollovers, financial services, money management, estate planning, retirement planning, and advising. We help you identify your short- and long-term goals, and then we work together to pursue them. Lastly, and most importantly, we’re Fee-Only, meaning we’re only compensated for our time. Our only incentive is to help you succeed.
