Both spouses delay the start of benefits.
If both spouses decide to wait until 70 to tap into their Social Security benefits, they will also receive their maximum amount. These benefits might grow by 8% on a yearly basis between their full retirement age and 70 years old.
Moreover, they can see additional benefits as long as they keep working during those years. Given that benefits are mainly based on your 35 highest-earning years, postponing retirement might wipe out lower-earning years from your record.
A higher-paid spouse delays the start of benefits.
It might not be mandatory for both spouses to delay the start of Social Security until they reach 70, especially if one spouse’s benefits are significantly lower.
In this situation, you can easily use the split strategy: the spouse who is bound to receive the highest benefits can easily delay them until he or she reaches 70.
Then, the spouse with lower earnings could start their benefits at full retirement age, as the higher earner’s Social Security benefits are increasing. When the second spouse reaches 70, they will both claim their benefits.
When to claim Social Security spousal benefits
Like many other financial decisions, there’s truly no ideal moment for couples to claim Social Security spousal benefits, and it mainly depends on your situation and financial plan.
Also, remember that whenever you decide to file for spousal benefits, you also have to file for retirement benefits based on your own work record. You shouldn’t make the mistake of assuming that you can file for spousal benefits while also letting your retirement benefits grow.
If you found this article useful, we also recommend reading: 8 Budgeting Mistakes You Can Easily Avoid in Early Retirement
