When married couples plan to claim Social Security benefits, several strategies can maximize their benefits based on their financial situation, health, and retirement goals. Here are some popular strategies.
Both Spouses Claim at Full Retirement Age (FRA): Each spouse claims their own benefit at their FRA (typically 66-67, depending on birth year). This avoids reductions for early claiming or delays for additional credits, providing a balanced income stream. Best for couples with similar earnings histories and life expectancies.
One Spouse Claims Early, Other Delays to Age 70: One spouse claims benefits as early as 62 (accepting a reduced benefit), while the higher-earning spouse delays until 70 to maximize their benefit through delayed retirement credits (8% annual increase from FRA to 70). This ensures a higher lifelong benefit for the surviving spouse. Ideal for couples with disparate earnings or when one needs income sooner.
Spousal Benefit Strategy: One spouse (typically with lower earnings) claims a spousal benefit based on the other’s record at FRA, which can be up to 50% of the higher earner’s FRA benefit. The higher earner delays claiming until 70 to maximize their benefit. The lower earner may switch to their own benefit later if it grows larger. Works well when one spouse’s benefit is significantly lower.
Survivor Benefit Consideration: The surviving spouse receives the higher of their own benefit or the deceased spouse’s benefit. Couples often prioritize delaying the higher earner’s claim to 70 to maximize the survivor benefit, especially if one spouse is likely to outlive the other.
For federal employees, Social Security is just one part of a three-legged stool designed to ensure a successful retirement. Coordinating your benefits properly will help you maximize your benefits in retirement. Want personalized advice from someone who understands the complexities of your federal benefits? Reach out to a Federal Retirement Consultant (FRC®) who can help you develop a comprehensive retirement plan tailored to meet your needs.
