When to claim Social Security is a big decision. But if you’re married, there’s an extra factor to consider.
When you choose to receive your benefits can impact the survivor benefits your spouse could receive if they live longer than you, and vice versa. Here’s what to consider.
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Why it’s important to consider your spouse’s plan
If you start receiving benefits as soon as you’re allowed (age 62) you’re locking in lower benefits than if you wait until your full retirement age or age 70, which is when the benefits are maximized. Typically, the survivor benefit is based on the deceased worker’s benefit amount, and the surviving spouse can choose to receive that or their own. The surviving spouse may be able to get the deceased spouse’s full benefit once they reach full retirement age.
Keep in mind that they only receive one benefit; you can’t collect your own plus a survivor benefit.
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Why survivor benefits change the math
If the higher-earning spouse passes away first, the spouse who has a lower benefit can opt to receive the deceased spouse’s benefit for the rest of their life. They're adjusted for the cost of living each year.
Because of this, it often makes sense for the higher-earning spouse to wait until 70 — or as long as possible until that age — to access benefits. The spouse with lower career earnings may opt to access Social Security a little earlier so the couple can live on that extra income and their savings until the spouse with higher career earnings can tap into benefits at 70. (The survivor benefit is different from the regular spousal benefit that applies when both spouses are alive.)
This planning can matter more if there is a large gap in earnings between the spouses. For instance, if one spouse was a high earner and the second stayed at home with children and did not work, it would be advantageous for both of them if the higher-earning spouse waited to claim Social Security until they turned 70.
How couples should think through the decision
While you will secure the highest possible benefit if you wait until 70, it’s not the right decision for everyone. Having not enough savings or health issues, for instance, can mean that for some people, it makes more sense to claim before age 70.
The age gap between spouses also plays a role. If the higher earner is 10 years older than the lower earner, then it may make sense for the higher earner to wait until turning 70. The breadwinner may pass away more than a decade before the surviving spouse does, which makes it even more important to secure a higher Social Security benefit.
You can open an account with the Social Security Administration via its website to compare your estimated benefit based on claiming ages. Speaking with a financial planner before you claim can help you make a more informed decision.
