Maximizing Social Security Retirement Benefits for Married Couples
Photo by Hector Reyes on Unsplash - Mature couple walking down road arm in arm
Strategic thinking around the timing and approach to claiming Social Security benefits can make a significant difference in the returns that you can expect for your total household income in retirement.
For those born after 1960, full retirement age (FRA) is 67. However, the are three primary claiming ages for retirement benefits.
As early as age 62: Results in a permanently reduced monthly benefit.
At Full Retirement Age (FRA): Allows you to receive 100% of your calculated benefit.
Delayed to age 70: Provides the highest possible monthly payment due to earned delayed retirement credits.
Generally, to maximize Social security as a married couple, the higher earner should delay their benefit to age 70 to secure the largest possible lifetime payout and survivor benefit. The lower earner can claim earlier for immediate household income, while strategically switching to spousal benefits once they reach full retirement age.
A highly effective and common strategy for couples is the "62/70 split," where the lower-earning spouse claims benefits early at age 62, while the higher earner delays until age 70. This approach generates early income while permanently maximizing the higher earner's payout and locking in the highest possible survivor benefit.
What does this particular strategy look like?
Consider a hypothetical couple named Mark and Elena, both in their early 60’s, living in Orange County, North Carolina.
Mark (Higher Earner): Primary Insurance Amount is $2,500/month at his Full Retirement Age (FRA) of 67.
Elena (Lower Earner): Primary Insurance Amount is $800/month at her FRA of 62.
The Strategy:
They decided not to simply claim their benefits as soon as they turned 62. Instead, they took a coordinated approach:
Elena claimed early at age 62: Because of early retirement reductions, her benefit was permanently reduced by 30%, giving her $560/month. This provided necessary cash flow for the couple to leave their savings untouched.
Mark delayed until age 70: By waiting 3 years past his FRA, Mark’s delayed retirement credits grew his benefit by 8% per year. His monthly check skyrocketed to $3,100/month when he finally claimed.
The Payoff for the Household: Once Mark started collecting at age 70, the household was pulling in a combined $3,660/month.
The Long-Term Benefit:
More importantly, they successfully planned for the future. Should Mark pass away first, Elena will no longer receive her smaller benefit check. Instead, under survivor benefits, she is entitled to keep 100% of Mark’s much higher, delayed monthly payment (the $3,100/month) for the rest of her life. This planning protects the surviving spouse against inflation and guarantees higher income long-term.
However, not all couples are the same and there may be other approaches that may prove more beneficial in the particular situation.
What are the key strategies to consider?
1. Delay the Higher Earner's Benefit
How it works: For every year you delay claiming past your FRA, your monthly benefit increases by about 8%. By age 70, you hit the maximum benefit.
Why it matters: The higher your benefit at age 70, the larger your surviving spouse's future benefit will be, as the surviving spouse keeps the higher of the two payouts.
2. Utilize Spousal Benefits
How it works: If your own earned benefit is less than 50% of your spouse's Primary Insurance Amount (PIA) at their full retirement age, you can claim a spousal benefit instead.
The caveat: To collect a spousal benefit, the higher-earning spouse must have already filed for their own benefits.
3. Coordinate Claiming Ages
Single Earner / One High Earner: The lower earner can file as early as age 62 to generate household cash flow. Once the higher earner files at 70, the lower earner’s benefit automatically bumps up to the spousal amount if it is higher than their own.
Dual Earners: If both partners earned relatively equal amounts and have longer life expectancies, it may make the most sense for both to wait until age 70 to maximize combined lifetime payouts.
4. Optimize for Survivor Benefits
How it works: When one spouse passes away, the surviving spouse is entitled to the higher of the two benefit amounts.
Why it matters: Ensuring that the higher earner waits until age 70 guarantees that the surviving spouse will receive that maximum enhanced benefit for the rest of their life.
5. Leverage Social Security Calculators
Because claiming strategies depend heavily on your exact age difference, relative earnings, and life expectancies, use planning tools to run joint projections before making a final decision. You can create a personalized account and view your estimated benefits at the Social Security Administration portal.
How can we know which option would work best for us?
You can do research into the best ways to maximize your own social security benefits. The Center for Retirement Research at Boston College, for example, has excellent resources that you can find here. It is also always recommended that this be an issue you discuss with your trusted Elder Law attorney. Although Social Security Benefits can be complicated, with a little research and support, you and your spouse can find the best way to maximize this resource to benefit your family.