In this post, we’ll dive into how couples can make the most of their Social Security (SS) spousal benefits—a topic that can feel a little confusing at first but makes a big difference over time.
First, the basics:
- Spousal benefits are based on your spouse’s benefit at their Full Retirement Age (FRA)—specifically, you can receive up to 50% of it.
- This doesn’t change whether your spouse claims early or delays their own benefit.
- But if you (the one applying for the spousal benefit) claim before your own FRA, your spousal benefit will be reduced.
For example, let’s take a married couple John and Jane. John’s benefit at FRA is $2,000. Jane is not qualified for her own benefit. If John claims early at 62 and gets $1,400/month, and his wife Jane waits until 67, she’ll still get 50% of John’s FRA benefit—$1,000—not 50% of his reduced amount. But if Jane claims early too, her benefit will be less than $1,000.
What if the higher earner delays their benefits?
Delaying increases their personal benefit by 8% per year, but it doesn’t increase the spousal benefit. So, even if John delays to 70 and receives $2,480, Jane’s spousal benefit still maxes out at $1,000.
Should couples always wait until 70?
Not necessarily. Let’s say both John and Jane are the same age. If they both wait until 70, their combined benefit is $3,480/month. But if they start at 67, it’s $3,000/month—three years earlier. They’d come out even at age 94. So, if you expect to live well into your 90s, delaying may be worth it. Otherwise, claiming earlier could give you more over your lifetime
Everyone’s situation is different.
You need to think about more than just the numbers—things like your health, financial needs, other sources of income, taxes, and how you feel about waiting all play a role.
What if both spouses are eligible for their own benefits?
That’s common. If one spouse’s benefit is less than half the other’s, Social Security will “top up” the lower benefit to get it to 50%. You’ll first get your own benefit, and then the top-up is added.
Some people wonder: Can I claim my spouse’s benefit first, then switch to my own later?
This strategy used to work under the “File and Suspend” rule—but that ended in 2016. Now, under the Deemed Filing Rule, if you qualify for both, you have to apply for both at the same time, and SSA will pay whichever is higher. But there’s a twist—if your spouse hasn’t applied yet, you can only apply for your own benefit. Then, once your spouse applies, you can switch to the spousal benefit if it’s higher.
Real-life example:
Robert delays his benefit until 67. Karen, who turns 63, applies early for her own reduced benefit of $450. Later, when Robert applies, Karen gets a $400 spousal top-up. Her own benefit stays reduced, but the total helps maximize their combined income.
Maximizing strategy for couples:
- The lower earner applies early for their own benefit.
- The higher earner delays as long as possible to increase the total household benefit.
- Once both are receiving, the lower earner may receive a spousal top-up.
This approach can work well, but it’s not one-size-fits-all. A solid Social Security plan should take your entire financial picture into account.
Before making decisions, it’s wise to talk to a financial professional who understands your personal and family situation.We help individuals and couples navigate the fine print so you can retire with confidence. Contact us today to explore your best options.