Navigating Social Security Benefits: What Couples Should Know

Navigating Social Security benefits can be complex, especially for couples nearing or at retirement age. A recent inquiry highlights the importance of understanding how benefits work for married individuals. A woman, who reached her full retirement age in June, is considering filing for Social Security while her husband currently receives benefits. The couple, married for 46 years, seeks clarification on whether their simultaneous collection will impact their respective benefits.

Understanding the mechanics of Social Security is crucial for couples like this one. Since both partners have reached their respective full retirement ages (FRA), they are entitled to receive their full benefits without any reductions. The wife, who has not yet filed for her benefits, continues to accumulate Delayed Retirement Credits (DRCs) at a rate of 0.667% for each month she delays her claim. This means she will receive her full retirement benefit, plus any DRCs earned, when she eventually files.

The key consideration for the couple is whether the wife is eligible for a “spousal boost.” If her Social Security benefit amount at FRA is less than 50% of her husband’s benefit at his FRA, she could receive an increase in her payments. This “spousal boost” would be calculated as the difference between her entitlement and half of her husband’s amount. Conversely, if her benefit exceeds 50% of her husband’s FRA entitlement, she will only receive her own benefit based on her individual earnings record.

In situations where one spouse’s benefit is significantly lower, the spousal boost provides a valuable safety net. The rules apply equally if the wife’s benefit is higher than her husband’s. If her FRA amount is more than double that of her husband’s, he could qualify for a spousal boost from her entitlement.

The timing of the claim is significant. The spousal boost ceases to grow once each spouse reaches full retirement age. Therefore, if the wife qualifies for additional benefits from her husband, it is advisable to claim her Social Security benefits now, retroactive to June, the month she reached her FRA. If she finds she will not benefit from a spousal boost, she may choose to delay her claim further to accrue more DRCs, potentially increasing her monthly benefit. DRCs can be earned up until the age of 70, at which point the maximum possible Social Security benefit could be approximately 127% of her personal FRA amount.

For personalized guidance, couples can consult certified advisors like Russell Gloor from the Association of Mature American Citizens, who emphasizes the importance of understanding one’s own benefits and options. Those interested in more information can visit the AMAC Foundation’s Social Security Advisory program for assistance.

Clear communication between spouses about their Social Security benefits is vital. Understanding how benefits interact can help couples maximize their financial resources during retirement.