Best Strategies to Maximize Social Security Spousal Benefits: Know Details

Social Security spousal benefits provide a valuable income boost for married couples, especially for those with one spouse who has a lower earnings history.

Being strategic about when and how you claim Social Security can significantly impact the total benefits you receive. Here, we’ll cover how Social Security spousal benefits work and outline the best strategies to maximize them.

How Social Security Spousal Benefits Work

Spousal benefits allow a husband or wife to claim payments based on the working history of their spouse. If a spouse qualifies for Social Security, their non-working or lower-earning spouse can claim up to 50% of the higher earner’s Full Retirement Age (FRA) benefit. To qualify:

• The worker must have earned at least 40 Social Security credits (equivalent to 10 years of work).
• The spouse must be at least 62 years old or caring for a child who is under 16 or disabled.

Spousal benefits are reduced if claimed before FRA (66 or 67, depending on your birth year) and increase the longer you wait, up to FRA.

How Much Can a Spouse Expect in Social Security?

The spousal benefit amount depends on the primary benefit amount of the higher-earning spouse. At full retirement age, the spousal benefit will be 50% of the working spouse’s benefit. If claimed early, the spousal benefit can be as low as 32.5%.

• Example: If a worker’s benefit is $2,400 at FRA, their spouse would be eligible for $1,200 at FRA. If claimed early, this amount could be reduced to as low as $780.

Strategies to Maximize Spousal Benefits

1. Both Spouses Delay Benefits Until Age 70

If both spouses delay claiming their Social Security benefits until age 70, they will receive the maximum possible amount. Social Security benefits grow by 8% per year between FRA and age 70, so delaying can significantly increase the benefits.

• Example: A worker eligible for $2,000 at FRA can increase their monthly benefit to $2,640 by waiting until age 70. Their spouse can then claim 50% of that amount, receiving $1,320.

2. Higher-Earning Spouse Delays Until Age 70

If one spouse’s Social Security benefit is much higher, it may not be necessary for both to delay. The higher-earning spouse can delay benefits until age 70, while the lower-earning spouse can begin collecting their benefits earlier (e.g., at FRA).

When the higher-earning spouse claims their benefits at age 70, the lower-earning spouse can switch to spousal benefits, if higher than their own.

• Example: The lower-earning spouse collects their own benefit starting at FRA. When the higher-earning spouse turns 70 and claims their benefit, the lower-earning spouse switches to spousal benefits, which could be higher.

3. Continue Working to Maximize Benefits

Continuing to work can also increase spousal benefits. Since benefits are based on your 35 highest-earning years, continuing to work later in life, especially if earning a higher income, can replace lower-earning years and boost your primary insurance amount (PIA), which in turn increases the spousal benefit.

4. File and Suspend Strategy No Longer Allowed

Before the Bipartisan Budget Act of 2015, couples could use a “file and suspend” strategy, where one spouse would file for benefits and then suspend them to let their benefits grow while the other claimed spousal benefits.

This is no longer allowed. Now, when one spouse files for benefits, they are deemed to be filing for all benefits they are entitled to.

Who Can Claim Spousal Benefits?

Current Spouses

If your spouse is currently receiving Social Security benefits, you may be eligible for spousal benefits. You must meet the age or caregiving requirements, and the spousal benefit will be based on the higher earner’s work record.

Divorced Spouses

Divorced spouses can also claim spousal benefits if:

• The marriage lasted at least 10 years,
• The individual is unmarried,
• The individual is at least 62 years old,
• The spousal benefit is higher than their own benefit.

Divorced spouses can claim benefits without affecting the current spouse’s benefits or the benefits of any other divorced spouses.

Widowed Spouses

Widowed spouses can claim survivor benefits, which allow them to receive up to 100% of their deceased spouse’s benefit if claimed at Full Retirement Age (FRA).

Widows and widowers can begin collecting survivor benefits as early as age 60, although payments will be reduced if claimed before FRA.

When to Claim Spousal Benefits

Claiming Before Full Retirement Age

If you claim spousal benefits before your FRA, the benefit will be reduced. For example, claiming at age 62 could reduce the spousal benefit to 32.5% of the higher earner’s FRA benefit. If both spouses delay their benefits until FRA or later, the spousal benefit will be 50% of the higher earner’s FRA benefit.

Claiming at Full Retirement Age

Waiting until FRA ensures you receive the maximum spousal benefit of 50% of your spouse’s benefit. There’s no advantage to waiting past FRA for spousal benefits, so it’s typically best to claim at FRA if you’re eligible for spousal benefits.

Survivor Benefits

Widows and widowers may be able to claim 100% of their spouse’s benefit if they wait until FRA. If claimed before FRA, survivor benefits are reduced but can be claimed as early as age 60.

Maximizing Social Security spousal benefits requires careful planning and consideration of both spouses’ earnings histories and retirement timelines.

By delaying benefits, continuing to work, and coordinating claim strategies, couples can increase their overall retirement income and ensure they receive the maximum benefit possible.

It’s important to consult with a financial advisor or use the Social Security Administration’s online tools to determine the best strategy for your specific situation.

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