Understand the Different Types of Social Security Benefits

Before you begin, it’s important to understand the different types of Social Security benefits you can claim as a couple:

• Retirement Benefits: These benefits are based on the earnings record of the individual who worked and paid into Social Security.
• Spousal Benefits: If one spouse has a significantly higher earnings history than the other, the lower-earning spouse may be able to claim spousal benefits, which are up to 50% of the higher earner’s benefit at full retirement age (FRA).
• Survivor Benefits: If one spouse passes away, the surviving spouse may be eligible to receive the deceased spouse’s benefit, which may be higher than their own Social Security benefit.

Delay Claiming Social Security to Increase Benefits

One of the most effective strategies for maximizing benefits as a couple is to delay claiming Social Security until each spouse reaches their full retirement age (FRA) or even beyond. Here's why:

• For the Primary Worker (Higher Earner): If you wait until after your full retirement age (FRA), your monthly benefit will increase by 8% for each year you delay, up to age 70. This can result in a significantly larger benefit over time.
• For the Spouse: If the lower-earning spouse is eligible for spousal benefits, they can also maximize the amount they receive by waiting until their FRA. If the lower-earning spouse claims benefits before FRA, they will receive a reduced amount.

Coordinate Between Spouses for Optimal Claiming Strategy

Maximizing Social Security benefits for a married couple often involves strategic coordination between spouses. Here are a few tips for effective planning:

Claiming Strategies for the Lower-Earning Spouse

• Spousal Benefits: The lower-earning spouse can claim spousal benefits based on the higher earner’s Social Security record, but this is only available once the higher-earning spouse begins receiving their benefits. To receive the full spousal benefit, the lower-earning spouse must wait until their full retirement age.
• Claiming at Full Retirement Age: The lower-earning spouse should claim spousal benefits at FRA rather than taking them earlier, as this ensures they receive the full amount (up to 50% of the higher-earning spouse’s benefit).

Claiming Strategies for the Higher-Earning Spouse

• Delay Benefits: The higher-earning spouse should consider delaying their Social Security benefits until age 70 to maximize their monthly payments. Since Social Security benefits increase by 8% each year after FRA, waiting as long as possible can significantly boost monthly benefits.
• Start Benefits Early for Survivor Benefits: If the higher-earning spouse passes away, the surviving spouse can claim survivor benefits, which are based on the deceased spouse’s higher benefit. If the higher earner claims early (before age 70), it reduces the survivor’s potential monthly benefit. Therefore, delaying the higher earner’s claim until age 70 could help the surviving spouse receive a larger survivor benefit.

Consider the Impact of Taxes on Social Security Benefits

Social Security benefits can be subject to federal income taxes, and this can affect how much of your benefit you actually receive. However, as a married couple, you can strategize to minimize taxes on your benefits:

• Filing Jointly: If you and your spouse file a joint tax return, your combined income may push your benefits into the taxable range. However, if one spouse has significantly lower earnings, it may be beneficial for the lower-earning spouse to claim benefits first to reduce taxable income in the early years.
• Managing Other Retirement Income: In some cases, it may make sense to withdraw funds from other retirement accounts, like IRAs or 401(k)s, to reduce your taxable income and keep your Social Security benefits from being taxed at a higher rate.

Plan for Survivor Benefits

When maximizing Social Security benefits as a married couple, it’s important to plan for survivor benefits, which can make a substantial difference to the surviving spouse after one of you passes away. The surviving spouse can receive:

• The full benefit of the deceased spouse if it is higher than their own benefit, or
• Their own benefit if it is higher than the deceased spouse’s.

To maximize survivor benefits:

• Delay Social Security: By waiting to claim until age 70, the higher earner increases their monthly benefit, which in turn boosts the survivor benefit.
• Coordinate Benefits for Maximum Survivor Payout: The surviving spouse can choose to claim the higher benefit between their own benefit and the survivor benefit, ensuring they get the larger monthly payment.

Be Aware of the Social Security Earnings Limit

If you claim Social Security before your full retirement age (FRA) and continue working, there are earnings limits that could reduce your Social Security benefits. For 2025, the SSA limits the amount of income you can earn before it starts affecting your benefits:

• Before FRA: You can earn up to $21,240 per year without a reduction in benefits. Earnings above this limit will result in $1 being withheld for every $2 earned above the threshold.
• Year of FRA: The earnings limit increases to $56,520 per year. In this case, $1 is withheld for every $3 earned above the limit.

Once you reach FRA, there is no earnings limit, and you can earn any amount without affecting your benefits.

Take Advantage of Online Tools and SSA Resources

The Social Security Administration (SSA) offers various online tools and resources to help you plan and maximize your benefits:

• SSA Retirement Estimator: This tool provides an estimate of your future Social Security benefits based on your work history and age.
• Spousal Benefits Calculator: The SSA also offers a spousal benefits calculator that allows you to determine how much your spouse can receive based on your own Social Security earnings record.