Should the Higher-Earning Spouse Always Delay Social Security? What the Math Shows.

In some ways, claiming Social Security can be trickier for couples than for singles. When you're single, you have to think only about your own needs. And you're dealing with only one set of benefits at a time.

When you're married, you have to think about your spouse's needs as well as your own. And you may have to coordinate two different claims.

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Couples where both spouses are eligible for Social Security are often advised to have the higher earner delay their claim. In many cases, having the higher earner wait can result in more household income. But that's not the only option on the table.

The upside of having the higher earner delay

The longer you delay your Social Security claim, up until age 70, the larger your monthly checks are. You can claim Social Security as early as age 62. And if you were born in 1960 or later, you can get your monthly benefits without a reduction at 67, which is full retirement age.

But for each year you delay Social Security past full retirement age, your monthly checks get a boost. That increase stays in effect for the rest of your life.

From a math perspective, it generally makes sense for the higher earner in a couple to delay Social Security. And the reason is that those benefits increase by a fixed percentage (8%) for each year you delay.

If you're the higher earner in your household and are therefore eligible for a $3,000 monthly Social Security benefit while your spouse is entitled to $2,000 a month, having you delay boosts your household income more than having your spouse delay.

In this example, delaying a $3,000 benefit at full retirement age until age 70 results in $3,720 per month in Social Security. Delaying a $2,000 benefit for three years results in $2,480. And a $720 boost is larger than a $480 increase.

Also, Social Security benefits are eligible for a yearly cost-of-living adjustment (COLA). The higher your benefit is, the more each COLA is worth. Boosting the larger benefit in your household, therefore, results in a larger bump each time a COLA is applied.

Finally, if the higher-earning spouse is likely to pass away before the lower earner, delaying their claim often makes sense from a survivor benefits perspective. The lower earner would then get the higher earner's benefit upon their passing. If it's boosted, it gives the lower earner that much more monthly income from Social Security.

Why having the higher earner delay doesn't always make sense

While the math often works out in favor of having the higher earner in a couple delay, there are exceptions.

One thing to keep in mind is that delaying benefits means giving up years of payments. Depending on life expectancy, those earlier payments can sometimes offset the boost that comes with delaying a claim.

Let's say you're the higher earner and delay your claim by three years beyond full retirement age. You'll need to live until age 82 and 1/2 to collect the same lifetime benefit you'd get by claiming at 67 versus 70. If you pass away at age 81, filing at 70 gives you less lifetime Social Security income.

Now, that doesn't mean you and your spouse will collectively get less Social Security, because in this case, your larger benefit translates into larger survivor benefits. But if your spouse doesn't live very long beyond your passing, your delayed claim could actually result in a smaller total lifetime payout from Social Security for both of you.

Look at the big picture

It can be tempting to have the higher earner in your household delay Social Security. But it's not a given that that's a smart move. In some cases, it could make sense to have the lower earner delay their claim or to have both of you file for Social Security on time or even early.

Before making your choice, think about your total financial picture, as well as your personal goals. If you have a lot of retirement savings, you may want your Social Security benefits sooner so you can travel and maximize good health. Having the higher earner wait could, in this case, mean missing out on opportunities to do the things you've always wanted.

In fact, that's one piece of the claiming puzzle couples often forget to think about. It's easy to get caught up in the numbers. And you should definitely do the math to see which filing strategy is likely to earn your household the highest lifetime Social Security paycheck possible.

But also think about what you intend to use your benefits for. That, too, should play a role in your filing decision.

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