Most married couples think about Social Security as two separate decisions: Each spouse chooses when to file based on their own benefit. But in actuality, Social Security should be viewed as a household decision. Spousal and survivor benefits can significantly change the math.
For couples, the goal isn’t necessarily to maximize each person’s individual check. It’s to coordinate benefits in a way that provides the most income over retirement, and protects the spouse who lives longer.
The Spousal Benefit Most Couples Overlook:
A spouse may qualify for a benefit worth up to 50% of the other spouse’s full retirement age benefit,* particularly if they have little or no work history or their own benefit is relatively small. But there are important limitations:
The higher-earning spouse generally must have filed before the other spouse can receive a spousal benefit.** Timing matters, too. Claiming a spousal benefit before full retirement age can permanently reduce it.**
And delaying a spousal benefit past full retirement age does not increase it.** Contrast that with a worker’s own retirement benefit, which can continue growing when delayed beyond full retirement age until age 70. This difference is one reason couples should coordinate their filing decisions rather than automatically following the same strategy.
Another major consideration is what happens when one spouse passes away. The surviving spouse doesn’t continue receiving both Social Security checks,* but typically receives the higher of the two benefits.**
That makes the higher earner’s filing decision particularly important. Delaying that benefit can increase not only the income available while both spouses are alive, but also the financial protection available to the surviving spouse.
Still, “wait until 70” isn’t automatically the right answer. Couples should weigh the larger future benefit against the income they’re giving up today. Health, life expectancy, age differences, and other retirement income sources all matter.*
Before filing, both spouses should review their Social Security statements and compare estimated benefits at 62, full retirement age, and 70. Then, consider spousal and survivor benefits, and run several claiming scenarios.
Social Security decisions can affect household income for decades. Coordination before filing can make a meaningful difference throughout retirement, especially for the spouse who lives longest.
*Source: Kiplinger
**Source: 24/7 Wall St.
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