What Is the Best Social Security Strategy for Married Couples?

Social Security plays a significant role in the retirement plans for many individuals and couples. For married couples, understanding the intricacies of these benefits is particularly important. A well-thought-out strategy can help maximize the combined lifetime income received from Social Security, providing a more secure financial foundation in retirement.

Understanding Social Security Benefits for Couples

Individual Social Security benefits are calculated based on a worker’s lifetime earnings. To qualify for retirement benefits, an individual needs to have earned at least 40 work credits, which typically translates to 10 years of work. The Social Security Administration (SSA) calculates a Primary Insurance Amount (PIA), which represents the monthly benefit an individual would receive if they begin collecting benefits at their Full Retirement Age (FRA). This PIA is determined by taking an average of the worker’s 35 highest-earning years, with those earnings indexed to account for changes in the national average wage over time.

Full Retirement Age (FRA) is the age at which an individual becomes eligible to receive 100% of their calculated PIA. This age varies by birth year. For those born in 1960 or later, FRA is age 67. Claiming Social Security benefits before reaching FRA results in a permanently reduced monthly benefit, while delaying beyond FRA can lead to increased benefits up to age 70.

Spousal benefits allow an eligible spouse to receive payments based on their partner’s work record. To qualify, the spouse must be at least age 62, or younger if caring for a child under age 16 or a child with a disability. The maximum spousal benefit is 50% of the working spouse’s Primary Insurance Amount (PIA) at their Full Retirement Age. If an individual is eligible for both their own retirement benefit and a spousal benefit, the SSA will automatically pay the higher of the two amounts. Claiming spousal benefits before reaching one’s own FRA will result in a permanent reduction of that benefit.

Survivor benefits provide financial support to eligible family members after a worker’s death, including a surviving spouse, a divorced spouse, or dependent children. A surviving spouse may be eligible for benefits as early as age 60, or age 50 if disabled, provided they meet certain marriage duration requirements. If a surviving spouse claims benefits at their own Full Retirement Age, they can receive 100% of the deceased worker’s benefit. Claiming survivor benefits before FRA results in a reduced monthly payment. Children of the deceased worker can also receive benefits if they are under 18 (or 19 if a full-time student) or disabled.

Optimizing Claiming Strategies for Married Couples

The claiming decision for the higher-earning spouse forms the foundation of a married couple’s Social Security strategy. Delaying the higher earner’s claim beyond their Full Retirement Age (FRA) can significantly increase their monthly benefit, reaching its maximum at age 70. This delay not only boosts the higher earner’s own lifetime income but also potentially increases the future spousal benefit for the lower-earning spouse and the survivor benefit should the higher earner pass away first. The delayed retirement credits earned between FRA and age 70 contribute to this increased benefit.

The lower-earning spouse’s claiming decision can be coordinated to complement the higher earner’s strategy. For instance, the lower earner could claim their own reduced benefit early to provide some income while the higher earner delays their claim. If the lower earner has a substantial work record, they might also consider delaying their claim to increase their own benefit amount.

Coordination for survivor benefits is an important aspect of a couple’s claiming strategy. If one spouse passes away, the surviving spouse can claim the higher of their own benefit or the deceased spouse’s benefit. A common strategy involves a surviving spouse claiming one benefit (e.g., survivor benefits) early and then switching to their own higher retirement benefit later, often at age 70, if that benefit has grown larger due to delayed claiming. This flexibility allows the survivor to receive income immediately while still maximizing their ultimate monthly payment.

Different couples will find different strategies beneficial based on their unique circumstances. For couples with significant age gaps, the younger spouse might consider claiming spousal benefits while the older, higher-earning spouse delays their own claim. In situations with large earnings disparities, maximizing the higher earner’s benefit becomes particularly important for the overall household income and future survivor protection. Couples with similar earnings might focus on both individuals delaying their claims to maximize their individual benefits, knowing that the survivor benefit will also be substantial.

Important Considerations for Your Claiming Strategy

Life expectancy and health are significant factors influencing Social Security claiming decisions. If both partners anticipate a long lifespan, delaying benefits for both, especially the higher earner, often results in greater total lifetime benefits due to the increased monthly payments. Conversely, if one spouse has health concerns that suggest a shorter life expectancy, claiming benefits earlier might be more advantageous to ensure more years of collection. Understanding the “break-even point” where delayed claiming surpasses early claiming in cumulative benefits can help inform this decision.

The presence of other retirement income sources, such as pensions, 401(k)s, or Individual Retirement Accounts (IRAs), should also be considered. Couples with substantial savings or guaranteed pension income may have the financial flexibility to delay Social Security claims, allowing their benefits to grow. For those with fewer alternative income streams, claiming Social Security earlier might be necessary to meet immediate financial needs, even if it means a reduced monthly payment. This financial planning should integrate all available resources.

Social Security benefits can be subject to federal income tax depending on a couple’s “combined income.” Combined income includes adjusted gross income, tax-exempt interest, and half of the Social Security benefits. For married couples filing jointly, if this combined income is between $32,000 and $44,000, up to 50% of Social Security benefits may be taxable. If combined income exceeds $44,000, up to 85% of benefits may be taxable. Claiming strategies can influence this tax liability, as higher benefits might push a couple into a higher taxable bracket.

The impact of continued work on Social Security benefits is another consideration, particularly if claiming before Full Retirement Age (FRA). The Social Security Administration applies an “earnings test” for those who work while collecting benefits prior to FRA. For 2025, if an individual is under FRA, $1 in benefits is withheld for every $2 earned above an annual limit of $23,400. In the year an individual reaches FRA, a higher limit applies ($62,160 in 2025), with $1 withheld for every $3 earned until the month they reach FRA. Once FRA is reached, the earnings test no longer applies, and benefits are not reduced regardless of earnings.

Immediate financial needs and desired cash flow throughout retirement play a significant role in determining the optimal claiming age. Some couples may prioritize immediate income to cover living expenses or pursue retirement goals, opting to claim benefits earlier. Others might be able to manage without Social Security income for a few years, allowing their benefits to grow and providing a larger, more stable income stream later in life. The decision often balances immediate needs with long-term financial security.

It is prudent to review Social Security claiming strategies periodically, as personal circumstances, health, and financial situations can change over time. The Social Security Administration allows for certain adjustments to claiming decisions within specific timeframes, providing some flexibility. This ongoing review ensures that the chosen strategy remains aligned with the couple’s evolving needs and goals.