Maximizing Social Security Benefits as Higher-Earning Spouse

As a spouse to a Social Security beneficiary and the higher-earning individual, navigating the complexities of Social Security claiming strategies can be overwhelming. You want to ensure you are maximizing your benefits while also considering your current financial needs, health, and future plans.

Understanding Your Options

Given that your husband has already started collecting his Social Security benefit, you have the option to claim spousal benefits. However, keep in mind that you will be dually entitled when you begin claiming, meaning you can choose between your own benefit and the spousal benefit - receiving the higher of the two.

Exploring Alternatives

While you could opt to start claiming your own benefit when eligible, another alternative is to delay claiming and continue receiving the benefit your spouse is currently getting. This decision should be based on your financial situation and ability to sustain a delay in benefits without impacting your immediate needs.

Factors to Consider

When making a decision on when to claim your Social Security benefits, factors such as your health and life expectancy play a significant role. Delaying benefits may lead to a higher payout in the future, with an increase of about 8% per year beyond Full Retirement Age up until age 70. However, it's important to assess whether this increment aligns with your anticipated lifespan and financial objectives.

Navigating Social Security benefits as the higher-earning spouse requires thoughtful consideration of various factors to ensure you are optimizing your retirement income while securing your financial well-being.

Benefits of Delaying Your Own Benefits

One strategy to consider is starting to claim your benefit at Full Retirement Age and having your husband switch to spousal benefits if half of your primary insurance would be more than what he's currently receiving. The primary insurance amount, or PIA, is what you are owed at FRA.

Survivor Benefits

There is an additional bonus to delaying your own benefit if you are the higher earner - survivor benefits. While the extra money from delaying does not transfer to spousal benefits, it does impact the survivor benefits that the Social Security Administration provides widows and widowers.

Social Security claiming strategies can seem complex, but by waiting until FRA to collect, you and your husband are on track to receive at least what you are owed in benefits. Now it's a matter of understanding how your own benefit fits into your financial plans both in the near and long term, and maximizing that potential.

Related: My wife and I are doctors with 457(b) plans that we can't roll over into IRAs. How should we handle this money in retirement?