Deciding when and how to claim Social Security benefits can feel like navigating a complex maze. For married couples, the decision becomes even trickier when you factor in spousal benefits. Sometimes, taking your own benefits makes the most sense, but there are plenty of times when claiming your spouse’s Social Security can lead to a bigger overall benefit. Understanding these situations is crucial to maximizing your household income during retirement and ensuring financial stability for both partners.
When Your Own Benefit Is Significantly Lower Than Your Spouse’s
One of the most common reasons to claim your spouse’s Social Security is when your personal benefit is much smaller than what you would receive as a spouse. If your earnings history is lower or your career was shorter due to time off for caregiving or other reasons, your benefit might be modest. Claiming your spouse’s higher benefit instead can give you a larger monthly check. This strategy can help keep your household budget balanced, especially if your spouse delayed claiming benefits and earned a higher amount.
When Your Spouse Delayed Claiming and Increased Their Benefits
If your spouse decided to delay claiming Social Security past their full retirement age to increase their monthly payments, claiming spousal benefits early can make financial sense. Spousal benefits allow you to receive up to 50% of your spouse’s full retirement age benefit if you claim at your own full retirement age. If your spouse’s benefit has grown due to delayed claiming, your spousal benefit could be substantially higher than your own. This can provide a steady income while your spouse continues to grow their benefit.
When One Partner Is Retiring Much Earlier Than the Other
Sometimes, spouses don’t retire at the same time. If one partner retires early and begins claiming benefits while the other continues working or delays retirement, the one who retired early may benefit from claiming the spouse’s Social Security. This can supplement income and ease the financial pressure. The partner with a lower benefit might find that the spousal benefit provides more financial security, especially if they’re younger or have a lower lifetime earning history.
When You’re the Lower Earner and Your Spouse Has a Large Work History
If you earned significantly less over your working years, you may receive a much smaller Social Security check on your own record. In these cases, claiming spousal benefits can be a smart move, as it allows you to tap into your spouse’s earnings record. This strategy helps equalize retirement income within the household. It also reduces the chances that the lower earner will outlive their money during retirement.
When You Want to Maximize Household Income Early on
Some couples prefer to maximize income in the early years of retirement, especially if they have health concerns or want to enjoy retirement while physically active. Claiming spousal benefits can help increase monthly cash flow, allowing the couple to spend more comfortably. This can be particularly useful when one spouse is eligible for higher benefits but prefers to delay claiming to increase the amount for later years, while the other spouse claims spousal benefits to cover immediate expenses.
When Your Own Benefit Would Result in a Significant Reduction
If you claim your own Social Security benefits before your full retirement age, your payments will be reduced. In some cases, claiming your spouse’s benefits at full retirement age will give you a larger monthly amount than your own reduced benefits. By waiting to claim spousal benefits until full retirement age, you avoid penalties on early claiming and can receive up to half of your spouse’s full benefit, which might be higher than your early retirement amount.
When Your Spouse Has a Survivor Benefit You Can Access Later
Spousal benefits can also come into play if you are widowed. Before that happens, you might choose to claim spousal benefits to increase your income while your spouse delays claiming. After your spouse’s passing, you may be eligible for survivor benefits, which could be equal to 100% of your late spouse’s benefit. Claiming spousal benefits beforehand can help you maintain financial stability during your spouse’s lifetime and prepare for the transition.
When You’re Approaching Full Retirement Age
Waiting to claim Social Security benefits until full retirement age can help maximize the amount you receive. For those with a smaller benefit, claiming your spouse’s Social Security at full retirement age allows you to access up to half of your spouse’s benefit without penalties. This strategy is often better than claiming a reduced benefit early. By timing your claim to your full retirement age, you strike a balance between income needs and maximizing payments.
When One Partner Plans to Work Beyond Full Retirement Age
If your spouse intends to continue working past full retirement age, delaying their own benefits can grow their Social Security payment substantially. Meanwhile, you can claim spousal benefits to maintain income flow. This arrangement provides financial flexibility. It also allows the working spouse’s benefit to increase thanks to delayed claiming credits, while the other spouse still receives income from spousal benefits.
When You Want to Coordinate Benefits Strategically as a Couple
Strategic claiming means couples look at their combined lifetime benefits and decide who should claim when to maximize total income. Taking your spouse’s Social Security may be part of this coordinated plan. For example, one spouse may claim spousal benefits early while the other delays claiming their own benefit. This approach can increase overall household cash flow, reduce taxes on benefits, and extend the longevity of retirement savings.
Social Security Planning Is a Team Effort
Social Security decisions aren’t one-size-fits-all, and what works best for one couple may not work for another. Taking your spouse’s Social Security benefits can be an intelligent move in many situations, especially when it increases household income or protects the higher earner’s benefits for later years. Understanding your options, eligibility rules, and timing can make a big difference.
Consulting a financial advisor or Social Security expert who understands spousal benefits can help you craft a strategy tailored to your specific situation. Don’t rush this important decision. Take time to evaluate your needs, health, life expectancy, and retirement goals.
Have you and your spouse discussed Social Security claiming strategies? What factors influenced your decisions, and how did you decide who should claim benefits first?
Read More:
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Riley is an Arizona native with over nine years of writing experience. From personal finance to travel to digital marketing to pop culture, she’s written about everything under the sun. When she’s not writing, she’s spending her time outside, reading, or cuddling with her two corgis.
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