How to Manage Social Security as a Married Couple

Social Security is a key part of most people’s retirement plan. The amount you collect monthly is based on how old you are when you start receiving benefits — up to age 70 — and how much you earned in your lifetime. When you’re married, you’ll want to maximize benefits for both spouses. Here’s what to know.

Social Security is just one of many factors you need to plan for during retirement. You also need to consider other sources of income and your insurance needs when you’re figuring out how to reach your goals. Talk to Farm Bureau for guidance on navigating this major life transition.

How Your Age Changes Your Benefits

If you were born in 1960 or later, your full retirement age is 67. But you can start collecting benefits between age 62 and 70. 

If you start at age 62, you’ll collect 30% less than you would at age 67. If you wait until after age 67, you’ll collect 8% more for each year you wait, up to age 70. Social Security strategies for married couples may mean you each start collecting at different ages to optimize your withdrawals while ensuring you have the funds you need. 

How Your Income Changes Your Benefits

Your Social Security benefit is based on the amount of income you earned in your 35 highest-earning years. So, it’s possible that you and your spouse will collect different amounts. If one of you worked significantly more than the other or earned much higher wages, that person would likely receive a higher benefit. 

Factoring in Longevity

Of course, you can’t know for sure how long you’ll live, but Social Security payments continue for the rest of your life. If you or your spouse expect to live into your early 80s, you will probably break even if you wait to claim benefits at age 70. That means the additional benefits you get will be worth more than what you would have received if you claimed at age 62 or 67. However, it’s important to balance that potential with your day-to-day income needs. 

Social Security Benefits for Spouses

Social Security includes protection for spouses who have little or no income during their working years. If their own benefits are less than 50% of their spouse’s full retirement benefit, they can collect the spousal benefits as long as their spouse has also begun collecting benefits.

Social Security Survivor Benefits

When one spouse dies, the other can receive up to 100% of their benefit, called the survivor benefit. The IRS does not allow people to receive both a survivor benefit and their own benefit, so you would need to decide which benefit is best for you.

Social Security Strategies

Of course, both spouses waiting until 70 is how benefits are maximized, but that may not be realistic – or even the best move – for every couple, depending on their financial situation and anticipated lifespan.

Many couples use a split strategy in which spouses begin claiming at different ages. A common approach is to have the lower-earning spouse claim benefits earlier as a way to meet day-to-day needs early in retirement while the higher-earning spouse waits longer to claim. This strategy not only increases their benefits, it also increases the survivor benefits that the other spouse could receive. The lower-earning spouse can then continue to receive their own benefits or can switch to spousal benefits, whichever is higher. 

Of course, delaying isn’t possible if you are relying on Social Security to meet your day-to-day needs. Couples may also choose not to delay if health or longevity are a concern; collecting early may allow you to more fully enjoy early retirement years. If you begin collecting and change your mind, there are actions you can take.

Farm Bureau Can Answer Your Questions About Retirement

Your Social Security calculations may change based on different scenarios, such as if you were born before 1960, if you are divorced or if you are disabled or caring for dependents. Even if you feel confident about your Social Security strategy, a Farm Bureau agent can help as you determine how to use your savings to meet your regular income needs.