One spouse is ready to retire, but the other plans to keep working for several more years. The couple has reviewed their savings, calculated household expenses, and started thinking about what retirement will look like. Yet one important decision could affect their income for decades: when each spouse should claim Social Security. Married couples have more to consider than simply choosing the earliest age at which benefits become available. Here are seven Social Security decisions worth discussing before either spouse submits a retirement application.
1. Decide Whether Claiming at 62 Makes Financial Sense
Most workers can begin receiving Social Security retirement benefits at age 62, but claiming early permanently reduces the monthly benefit relative to waiting until full retirement age. For people born in 1960 or later, full retirement age is 67. Claiming at 62 can reduce a worker’s retirement benefit by as much as 30% compared with claiming at 67. The Social Security Administration explains how these reductions depend on birth year and claiming age. Couples should compare the need for immediate income with the financial consequences of accepting smaller monthly payments throughout retirement.
2. Consider Whether the Higher Earner Should Delay
Delaying retirement benefits beyond full retirement age can increase a worker’s monthly payment through delayed retirement credits. For people born in 1943 or later, these credits generally increase benefits by 8% annually until age 70. A higher-earning spouse who delays claiming may also improve the survivor benefit potentially available to the other spouse. This strategy can be especially important when one spouse has a much smaller retirement benefit or expects to outlive the other. However, health, employment plans, household savings, and immediate income needs can make earlier claiming appropriate in some circumstances.
3. Understand How Spousal Benefits Work
A spouse may qualify for benefits based on the other spouse’s Social Security earnings record. At full retirement age, the maximum unreduced spousal benefit is generally 50% of the worker’s primary insurance amount, subject to eligibility rules. Claiming spousal benefits early can reduce that amount, and delaying spousal benefits beyond full retirement age generally doesn’t increase them. The SSA’s spousal benefit guidance explains how these benefits are calculated. Couples should also understand that a person eligible for both their own retirement benefit and a spousal benefit generally receives a combined amount reflecting the higher applicable benefit, not two full payments added together.
4. Plan for What Happens After One Spouse Dies
Social Security survivor benefits can become one of the most important sources of income for a surviving spouse. An eligible widow or widower may receive a benefit based on the deceased spouse’s earnings record, with the amount depending on several factors, including claiming age. The SSA’s survivor benefits information explains eligibility and payment rules. A surviving spouse generally doesn’t continue receiving both full retirement checks after the other spouse dies. Couples should calculate whether the surviving household could manage housing, healthcare, and everyday expenses with only the applicable survivor benefit and other remaining income.
5. Discuss How Continued Employment Affects Benefits
A spouse who claims Social Security before full retirement age and continues working may face benefit withholding under the retirement earnings test. For 2027, the earnings limit is $25,560 for someone who remains below full retirement age throughout the year. A separate, higher limit of $67,920 applies during the year someone reaches full retirement age, counting earnings before the applicable month. The Social Security Administration’s earnings test information explains the withholding rules and later benefit adjustments. Couples should consider employment income and benefit timing together rather than assuming claiming Social Security automatically means someone must stop working.
6. Calculate the Tax Impact of Two Income Sources
Social Security benefits may become taxable when a household has sufficient combined income from benefits and other sources. For married couples filing jointly, federal taxation of benefits can begin when combined income exceeds $32,000 under the longstanding statutory thresholds. Depending on income, up to 85% of benefits may be included in taxable income, although that doesn’t mean benefits are taxed at an 85% rate. The IRS explains how Social Security taxation is determined. Couples should evaluate wages, pensions, retirement account withdrawals, and investment income before deciding which spouse should claim benefits first.
7. Coordinate Medicare and Social Security Timing
Medicare eligibility generally begins at age 65, while full Social Security retirement age is later for many Americans. A spouse who retires at 65 but delays Social Security may need to enroll in Medicare independently rather than assuming enrollment will happen automatically. Continuing employer coverage can affect Medicare enrollment decisions, depending on the employer’s size and the type of coverage. The official Medicare enrollment guidance explains enrollment periods and situations involving employer insurance. Couples should also account for Medicare premiums when estimating how much of their Social Security income will remain available for household expenses.
Run the Numbers as a Household
Social Security claiming decisions shouldn’t be made independently when two spouses depend on shared retirement income. A strategy that maximizes one person’s early payments may not provide the best protection for the surviving spouse. The SSA’s retirement benefit estimator allows workers to review personalized estimates at different claiming ages. Compare scenarios involving early retirement, delayed claiming, continued employment, and the death of either spouse. Evaluating those possibilities together can reveal risks that aren’t obvious when each person looks only at their own monthly benefit.
Two Retirement Checks Require One Coordinated Plan
For married couples, Social Security is more than a decision about when to start receiving a monthly payment. Claiming ages, spousal benefits, survivor protections, taxes, and employment can interact in ways that affect decades of retirement income. The best approach depends on each spouse’s earnings history, health, financial resources, and long-term priorities. Before submitting an application, compare the household’s income under several realistic scenarios. A coordinated decision today could make a meaningful difference in financial security for whichever spouse lives longer.
If you’re married, have you and your spouse discussed when each of you will claim Social Security, or are you planning to make those decisions separately? Share your thoughts in the comments!
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