Determining when to take Social Security benefits can be a daunting task, one that becomes even more complex when thinking about how your choice interacts with your spouse’s. A coordinated strategy can mean tens of thousands of dollars more over your lifetimes, but a disjointed one can leave money on the table. Unfortunately, the rules are complex, and what’s best for one spouse isn’t always best for the household.
Each spouse can claim their own retirement benefit, based on their earnings history, or claim a spousal benefit up to 50% of the other spouse’s full retirement benefit. The spousal benefit can be valuable if one partner had lower lifetime earnings, but it’s only available once the higher-earning spouse starts collecting.
The key challenge is that Social Security rewards patience. For each year you delay taking benefits past your full retirement age (FRA), your monthly payment grows, up to age 70. That growth can be especially important for the higher earner, because their benefit will also determine the survivor benefit if they pass away first.
Delaying isn’t always possible or optimal, though. For example:
- If the lower earner needs income sooner, starting earlier might make sense, even if it means giving up higher payments later.
- If one spouse has health concerns or a shorter life expectancy, it may shift the balance toward earlier claiming.
- If there’s a large age gap, the timing choices can be even trickier, as one spouse might be eligible for benefits years before the other.
Coordinating Social Security between spouses isn’t just about making two separate good decisions. It’s about figuring out one joint strategy. A common approach is for the higher earner to delay benefits to maximize the survivor benefit, while the lower earner claims earlier to bring income into the household. But that’s not always the obvious winner, as tax implications, Medicare premiums, and other retirement income sources can all tip the scales.
There’s no universal “right age” for both spouses. The optimal plan depends on health, finances, and life expectancy, not to mention your tolerance for risk and desire for guaranteed income. A coordinated claiming strategy, modeled by a financial advisor, can help ensure you get the most from a benefit you’ve spent decades earning.