The social security loophole nobody knows about

Retirement shouldn’t stress you out. There are tricks to make your retirement money bigger, and one of the easiest ones is right under your nose.

It’s actually a very simple social security loophole that almost nobody knows about.

Most people miss out on up to $50k a year simply because this legal loophole isn’t made public.

It’s so simple to use… here’s how:

This loophole goes by many names, but I refer to it as the “claim now, claim more later” loophole.

That name tells all: claim your money now, and you can then claim more money later.

The way it works is very simple, when a married couple retires, each spouse usually claims their retirement benefits immediately, but this is exactly where they’re throwing away the extra $52k a year that could have a huge impact on their life.

Consider that the median retiree net worth in the U.S. is $90,000.

The way this loophole works is this:

When the couple retires, only one person should claim their full retirement (for clarity sake, we’ll say this is the husband).

The wife would then hold off on claiming his full retirement and instead utilize something called a spousal benefit.

A spousal benefit, commonly used by couples with only one worker, is a benefit that can be claimed by the spouse of a retiree, which pays out 50% of the retiree’s income.

So let’s say the husband retired and claimed his $90,000 a year retirement package. The wife would then claim a spousal benefit which would pay out $45,000 a year.

Now, it probably seems that retirement would be more comfortable if both retirees claimed the $90,000, but the reason this loophole works so well is because the wife’s untouched retirement fund then grows 8% per year.

After 6 years of using this loophole, the wife can then claim her full retirement package of $142,818 per year ($90,000 plus 8% for 6 years).

So instead of the initial $180,000 per year you’d receive if you both took your full retirement benefits immediately, you’d now be claiming $232,818 per year, not to mention the $270,000 over the 6 years of the spousal benefit.

This works out to an extra $50k+ a year for you to live comfortably on.

As I mentioned, this retirement loophole is often overlooked, and hundreds of thousands of people miss out on this extra $50k+ a year that they should be claiming.

That money makes a huge difference for the retirees who know about this loophole.

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