Social Security Benefits for Married Couples

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Maximizing Social Security: A Guide for Married Couples

For married couples, a strategic Social Security claiming decision can add tens of thousands of dollars to your collective lifetime income. However, the rules have changed significantly in recent years, and popular strategies from the past, like “File and Suspend,” are no longer available. Understanding the modern rules is essential to making the most of your hard-earned benefits.

The End of an Era: Old Strategies That No Longer Work

It is critical for couples approaching retirement to know that two once-popular strategies have been eliminated for most new retirees:

  • File and Suspend: This strategy is no longer available.
  • Restricted Application: The ability for a spouse at Full Retirement Age to claim only a spousal benefit while letting their own benefit grow is no longer an option for anyone born after January 1, 1954.

Any advice based on these outdated strategies is incorrect and should be disregarded.

The Modern Spousal Benefit: How It Works Today

A spouse is still entitled to a spousal benefit, which can be up to 50% of the higher-earning spouse’s full retirement benefit. However, a rule called “deemed filing” now applies. This means that when you file for your own retirement benefit, you are “deemed” to be filing for any spousal benefits you are also eligible for. Social Security will then pay you the higher of the two amounts. You can no longer choose to receive only the spousal benefit while letting your own continue to grow.

The Most Powerful Strategy for Couples: Maximizing the Survivor Benefit

Today, the most impactful claiming strategy for married couples revolves around protecting the surviving spouse. When one spouse passes away, the survivor is entitled to receive the higher of the two Social Security benefits. This makes the higher earner’s decision on when to claim incredibly important.

By delaying their own benefit until age 70, the higher-earning spouse maximizes their monthly check. This not only provides a larger income stream while both are alive but also locks in the largest possible survivor benefit for their partner, providing a crucial financial safety net for the rest of their life.

Your Social Security claiming strategy is a critical part of a coordinated retirement and estate plan that should be made with a clear understanding of all your options. Call our office at (919) 256-7000 to schedule a consultation.