Most people don’t think of social security and strategy as related. But they do because they are both essential in planning to receive the best social security benefits for you and your spouse. Social security strategies vary from article to article. But there are some consistent strategies you need to know.
If you learn these Social Security strategies, you will be able to have the retired life you dreamed of throughout your working years. Knowing Social Security strategies will allow you to share a premium retired life with your spouse.
We are here to show you ten ways you and your spouse can use Social Security strategies to reap the retirement financial rewards you deserve.
Average Social Security Benefit for Married Couples
Knowing how much each spouse will receive in retirement benefits is essential for planning the best Social Security strategies.
The foundation for determining Social Security retirement benefits is their job earnings. How long they worked and how much they earned are critical components of the benefit formula. The Social Security retirement benefit formula will determine the monthly benefits one receives.
It is also essential to understand that both spouses’ Social Security benefits will be calculated separately based on their work histories. However, you may be eligible for spousal benefits if that amount exceeds your benefits.
Family Benefit Caps
In some situations, a “family benefit threshold” caps the total benefits a family can receive.
- A family benefit cap uses a single worker’s earnings record as the benefit amount.
- The maximum family benefit cap is 150 to 188 percent of the worker’s monthly benefit payment at their full retirement age.
Average Benefit Amounts
The SSA has established a maximum Social Security benefit for individuals who receive their retirement benefits at full retirement age or 70.
- The maximum amount an individual beneficiary can receive at full retirement age is $3,822 monthly for 2024.
- Individuals who decide to wait until age 70 to begin receiving Social Security benefits can receive a maximum of $4,873 monthly in 2024.
KEY TAKEAWAYS
- The maximum Social Security retirement benefit in 2024 is $3,822 at full retirement age; if you delay benefits until 70, you can receive $4,873 monthly benefits.
- For those with a shorter life expectancy, beginning your retirement benefits early may be beneficial as it can maximize your lifetime benefits.
- Even if your spouse does not qualify for Social Security benefits through their work history, they may still be eligible for spousal benefits under your account.
Social Security Options
Social security options vary for married couples and are diverse. We have outlined five social security options for your consideration. They are:
- If possible, a married couple should delay filing for social security benefits. This is very smart if the couple is around the same age.
- If you wait to claim at full retirement age, the spousal benefits you will receive are about half the higher-earning spouse’s benefit.
- However, when you file a Social Security married benefit claim before the full retirement age, there is a negative result. Your financial dollar benefit is forever reduced. It becomes;
- 25/36 of 1% (8.33% per year) for each month before full retirement age, up to 36 months early.
- 5/12 of 1% (5% per year) for each month beyond 36, as early as age 62.
- This results in your Social Security financial benefit being maximized at the full retirement age. Suppose a married couple has one partner who earns more than the other; Social Security benefits become based on their job earnings, maximizing your Social Security financial dollar amount.
- If a married couple is in ill health or may have a shorter projected life expectancy, claim your Social Security benefits earlier. This maximizes your Social Security financial dollar amount.
- A spouse can receive maximum Social Security benefits if the other spouse claims theirs.
- The higher-earning spouse must collect their social security benefits before their spouse.
- A spouse’s Social Security claim must be active before their spouse claims their benefit to maximize the payment.
- Do not wait to file for your married Social Security benefits if you are already 67 years old.
- Your spousal Social Security benefits max out and do not ever increase after you turn 67 years old.
Must read articles related to Social Security
- Eight ways to maximize your Social Security benefits.
- Three easy steps to apply for Social Security benefits.
- What is a Social Security Award Letter, and how do you get a copy?
- Tips for maximizing Social Security spousal benefits.
- When might you consider hiring a Social Security lawyer?
Social Security Advice
The Social Security advice we list below also helps you maximize your spousal Social Security benefits. They are;
- If your spouse was the higher social security benefit earner and dies first, you may be able to get their benefits.
- No matter which spouse dies first, the other receives 100% of the Social Security benefit amount if they are at retirement age.
- The higher Social Security benefits go to the surviving spouse. The spouse’s greater benefit is always yours instead of the lower amount.
- Most married people remember a file-and-suspend social security strategy, which helped maximize benefits. But this strategy is long gone.
- Now, both spouses are eligible to file for Social Security retirement benefits, but the lower-earning spouse must file before retirement age.
- This gives spouses Social Security benefit dollars.
- The higher-earning spouse needs to wait as long as possible to claim Social Security benefits, which will maximize their inflation-adjusted income.
- As a side benefit, it also provides increased survivor Social Security benefits. This occurs if the higher-earning spouse dies.
- If a spouse dies and the remaining spouse remarries at age 60 or later, they can collect Social Security survivor benefits, which they received from their deceased partner.
- If you and your spouse earned about the same amount during your working years, you should both wait until you are 70 to file.
- This maximizes your social security retirement amounts, and your survivor benefits for each other.
- Any divorced individual can still receive spousal Social Security benefits if a previous marriage was 10 years or more.
- If you have a deceased ex-spouse and your marriage was 10 years or more, you will get whichever social security benefit is higher.
TIP
Understanding how the SSA calculates your Social Security retirement benefits can help you find ways to potentially increase your benefits.
Social Security Filing Strategies
Recent laws have changed Social Security benefits, so it is important to understand Social Security filing strategies. Most Americans receive Social Security retirement benefits of approximately 30 to 60% of their total retirement income.
What’s sad to learn is over 90% of Americans never receive all the Social Security benefits they are entitled to.
Married couples are losing thousands of dollars of Social Security benefits. Yet the Social Security Administration cannot tell you this, as they are not allowed to and cannot give you any Social Security strategy.
Filing Options
Furthermore, the Social Security Administration has over 2,700 rules for filing Social Security benefits, some of which are very complex.
There are over 500 ways to file for Social Security benefits. If you do nothing else, learn your Social Security benefit process before filing.
Spousal Social Security filing strategies that maximize benefits are not simple and can complicate the process. It helps to understand the rules that apply to your benefit status to ensure you receive the most spousal Social Security benefits.
When deciding on the best options and timing of when to begin taking Social Security retirement benefits, consider your life expectancy and income needs. Once you determine your needs, you can calculate how long you and your spouse should work.
Social Security Strategies
We already know the average social security benefit for married couples is a formula that uses you and your spouse’s job history.
Calculating Your Benefit
Your Social Security strategies must consider and adjust your job earnings for inflation. It then takes your job’s monthly income over the 10-35 years you worked.
The Social Security Administration eventually adjusts this figure with bend points. Adjustments for you and your spouse are separate.
This allows the Social Security Administration to calculate how much each of you will receive at your full retirement age, which is between 66 and 67 if you were born after 1954.
Spousal Benefits Example
Here are examples of the Social Security strategies you might take with your spouse.
One of these examples is as follows;
- Your full retirement age spouse will receive $2,000 in social security benefits.
- You will receive nothing because you never paid into Social Security or didn’t pay into Social Security long enough to receive benefits.
- If you are the spouse who will receive 0 in Social Security benefits, you can apply for spousal Social Security benefits of 1/2 of the $2,000.
- In other words, you can receive $1,000 a month in spousal benefits.
In 2024, the maximum Social Security retirement benefit at full retirement age is $3,822. Therefore, a spouse could receive up to $1,911 in spousal benefits. This means the couple could receive a combined monthly benefit of $5,733.
The Bottom Line
There are many ways to maximize spousal Social Security benefits. We have listed a few in this article. However, there are many more ways to plan for your Social Security benefits and retirement pension needs.
The best place to start is always at the beginning. Begin by understanding all your Social Security retirement benefit options. Next, review the Social Security retirement benefits application procedures.
To assist you with this process, we have created a brief check-off list you can review to help familiarize yourself with the Social Security application procedure.
Frequently Asked Questions
The amount of Social Security a married couple receives depends on their lifetime earnings and age. If both spouses were high earners for at least 35 years, they could receive the maximum each month, leading to a combined payment of over $8,000.
However, most couples receive much less than this. If one spouse receives spousal benefits, they would get 50% of the primary beneficiary’s payment amount. For instance, if one spouse receives $2,000 monthly for their benefit, the other spouse could get $1,000 monthly in spousal benefits.
Yes, married couples can receive two Social Security checks. If each spouse has a work history, they can receive separate retirement benefits based on their work history.
However, even if one spouse does not have a work history, that spouse can still receive spousal benefits based on their spouse’s work record. In either case, each spouse will receive a Social Security check monthly.
Divorced spouses can still qualify for spousal benefits and survivor benefits. Typically, the marriage must have lasted at least ten years to be eligible for benefits based on your ex-spouse’s record.
Your ex-spouse must already receive benefits unless the divorce occurred over two years ago. In that case, the ex-spouse must be old enough to qualify for benefits. Getting remarried before age 60 will cause you to become ineligible for survivor benefits from your ex-spouse’s record. However, remarrying after age 60 will not affect your potential survivor benefits.
You can find a Social Security Administration office near you by using our SSA office locator and searching for your closest location.
