Understanding Social Security Benefits for Couples: Key Insights

In a recent inquiry regarding Social Security benefits, a woman seeking to clarify her retirement options has highlighted important considerations for couples. With both spouses having reached their respective Full Retirement Age (FRA), they can navigate the complexities of their benefits without penalty.

The individual, referred to as “Concerned Wife,” is contemplating whether her decision to file for Social Security, alongside her husband who is already collecting, will impact her benefits. She has been married to her husband for over 46 years and is unsure if her claim will trigger any adjustments, particularly since they did not consult an advisor when her husband began receiving his benefits.

According to Russell Gloor, a certified Social Security advisor with the Association of Mature American Citizens, both spouses can indeed receive their full benefits without any reductions once they reach FRA. For “Concerned Wife,” who reached her FRA in June, the delay in filing means she has been accumulating Delayed Retirement Credits (DRCs). This accumulation increases her eventual benefit by 0.667% for each month she postpones her claim.

When considering the potential for a spousal boost, it is essential to understand how Social Security benefits are calculated. If the benefit amount she is entitled to at her FRA is less than 50% of her husband’s FRA entitlement, she may receive a spousal boost. This boost would represent the difference between her own FRA amount and half of her husband’s FRA amount. Conversely, if her benefit exceeds 50% of her husband’s, she will only receive her own calculated benefit based on her lifetime earnings.

Gloor emphasizes that spousal benefits are contingent upon each partner’s FRA entitlement. If one partner’s benefit is less than half of the other’s, the lower amount can be supplemented. This dynamic can also work in reverse; if her benefit is significantly higher, her husband could receive a boost from her entitlement.

For those eligible for a spousal boost, Gloor recommends claiming benefits as soon as possible to maximize advantages, especially since the spousal boost stops accruing at FRA. In this case, “Concerned Wife” should consider filing for her Social Security benefits now and may request retroactive payments to her FRA month in June.

On the other hand, if a spousal boost is not applicable, delaying her claim could still be beneficial. By postponing until she is 70 years old, she can continue to earn DRCs, eventually leading to a higher monthly benefit.

Understanding the intricacies of Social Security benefits is crucial for couples planning their retirement strategies. By consulting with knowledgeable advisors, individuals can ensure they make informed decisions that maximize their financial security in retirement. For further inquiries or personalized advice, individuals can reach out to the AMAC Foundation’s Social Security Advisory program via their official website or email.

For those navigating similar situations, the key takeaway is that both spouses can collect their benefits without negatively affecting one another’s entitlements, provided they understand their individual circumstances and options.