Why Married Couples Often Get Social Security Wrong

The decision to claim Social Security can be complicated no matter your relationship status. But when you’re married, there’s often a lot more to consider.

One of the biggest mistakes married couples make in the context of Social Security is not coordinating their filing strategies. But treating Social Security as an individual financial decision instead of a joint one could lead you to lose out.

It’s important to look at the big picture — and talk about it

In many married households, one spouse claims Social Security early or one time while the other delays for boosted benefits. And while this strategy works for many people, it’s not a given that it will work for you.

For one thing, it’s important to decide who will claim first and who will claim later. It can be beneficial for the higher-earning spouse to delay their claim for larger checks, but not always.

And it’s not always advantageous to have one spouse delay. If you’re a couple with health issues and don’t expect longevity to be on your side, then it could pay for both of you to file for benefits early, or at least not wait past full retirement age.

But details aside, one of the most important things to do is look at your financial picture together and make decisions based on your retirement income streams, immediate and long-term income needs, goals, and health.

If you have a lot of retirement savings, you may decide that both of you will claim Social Security early to use the money while you’re a bit younger. If you don’t have a lot of savings, it could make sense for both of you to delay.

But these are decisions that have to be discussed thoroughly. And you both need to be on board.

Also, a lot of married couples overlook the importance of survivor benefits in situations where one spouse is likely to outlive the other. If the higher earner passes away first, the lower earner is entitled to survivor benefits equal to 100% of the higher earner’s benefit.

Couples don’t always remember that when making their filing decisions, especially when they take benefits without consulting a spouse first. If you’re the higher earner and you claim Social Security early to get money sooner, you could leave your surviving spouse with less income for what could be many years.

Communication is key

Open communication is often the foundation of a strong marriage. It could also be your ticket to a financially sound Social Security filing decision as a couple.

Talk things through with each other to sync up on a strategy that works. And if need be, get outside help, too. There’s nothing wrong with sitting down with a financial advisor and asking for guidance, especially if there are multiple needs and goals to factor in.