Understanding Social Security Benefits for Couples: Key Insights

Many couples nearing retirement have questions about how their Social Security benefits will interact once they both begin collecting. A recent inquiry highlighted a situation involving a woman who has reached her full retirement age (FRA) but has not yet filed for her Social Security benefits. Her husband, who began collecting his benefits at his FRA a few years ago, prompted her to seek clarity on how their benefits might affect one another.

According to advice from Russell Gloor, a certified Social Security advisor with the Association of Mature American Citizens, both individuals are eligible to receive their full benefits without any reductions since they have reached their respective FRAs. The woman, having reached her FRA in June 2023, is currently accumulating Delayed Retirement Credits (DRCs) at a rate of 0.667% for each month she delays her claim. This means her eventual Social Security retirement benefit will include any earned DRCs, resulting in a potentially higher monthly amount.

One critical consideration revolves around the possibility of a “spousal boost.” If the woman’s benefit at her FRA is less than 50% of her husband’s benefit at his FRA, she may receive an additional amount to bring her total benefit up to that threshold. This “boost” is calculated as the difference between her entitled benefit and half of her husband’s FRA amount. Conversely, if her benefit exceeds this 50% threshold, she will receive only her own benefit based on her work history.

Understanding these parameters is essential, as they determine how benefits are calculated for couples. If either spouse’s FRA amount is below half of the other’s, they may qualify for a spousal boost. This applies in cases where one partner’s benefit exceeds the other’s; thus, if the woman’s benefit is more than twice her husband’s, he would receive a spousal boost based on her earnings.

Gloor emphasizes that both spouses collecting Social Security benefits will not negatively impact each other’s amounts. Each will receive the benefit they have individually earned throughout their working lives.

For couples contemplating when to claim, Gloor notes that the spousal boost ceases to increase once they reach their FRA. Therefore, if the woman qualifies for this boost, she should consider claiming her benefits now, potentially retroactive to her FRA in June. On the other hand, if she does not qualify, she may choose to delay further to earn additional DRCs, which could lead to a maximum benefit of about 127% of her FRA amount by age 70.

Navigating Social Security benefits can be complex, particularly for couples. Seeking informed guidance can help ensure that both partners maximize their retirement income and understand the implications of their decisions. For further inquiries about Social Security, individuals can submit questions to the AMAC Foundation’s Social Security Advisory program.