Benefit Cliffs and Filing Traps
Filing for ex-spousal benefits before reaching Full Retirement Age results in a permanent payout reduction. Furthermore, if you claim benefits before your FRA while continuing to work, the Social Security earnings test reduces your check if earnings exceed federal thresholds. Data from the Bureau of Labor Statistics highlights that many older adults maintain flexible employment, making earnings limits a key consideration for working retirees.
Another common pitfall involves missing documentation. Government offices require original marriage certificates, divorce decrees, and your ex-spouse’s identifying details to process claims. Gathering these documents early prevents administrative delays.
