When it comes to Social Security benefits, retirees are often advised to delay claiming them until the age of 70. This is because waiting ensures higher monthly payments, potentially providing more lifetime income, especially with today’s longer life expectancies. For many retirees, this approach makes financial sense. However, there is one specific situation where delaying Social Security is not advisable. Here’s what you need to know.

Key Insights for Retirees Considering Social Security Spousal Benefits

1. No Benefit to Delaying Spousal Benefits Beyond FRA
   If you are planning to claim Social Security spousal benefits, you should not delay past your Full Retirement Age (FRA). The FRA is 67 for individuals born in 1960 or later. At your FRA, you are eligible to receive 50% of your spouse’s primary benefit.However, if you claim spousal benefits before FRA, your payments will be reduced. Importantly, claiming after FRA does not increase your payments. Unlike individuals claiming benefits based on their own earnings, spousal benefits do not earn delayed retirement credits. This means waiting beyond FRA would result in a financial loss without any added advantage.
2. Difference Between Personal Benefits and Spousal Benefits
   Retirees claiming Social Security based on their own earnings history can benefit from delayed retirement credits. These credits increase payments by two-thirds of 1% per month until age 70. For someone with an FRA of 67, this translates to a 24% boost in monthly payments by waiting until 70.Spousal benefits, however, do not come with such perks. If you are eligible for spousal benefits, delaying your claim beyond FRA means you are forfeiting payments you could have received without gaining anything in return.

Understanding the Rules for Spousal Benefits

One critical rule for spousal benefits is that they can only be claimed if your spouse has already started receiving their Social Security retirement checks.

For instance, if your spouse is the higher earner and has not yet filed for benefits, you will need to wait until they do. This can be frustrating if you are ready to claim spousal benefits but your spouse is delaying their claim to maximize their own payments.

Why the Higher-Earning Spouse Should Delay Benefits

It often makes financial sense for the higher-earning spouse to delay their Social Security claim until the age of 70. Here’s why:

• Higher Survivor Benefits: When the higher-earning spouse delays, it increases the amount their partner will receive if they pass away first.
• Maximized Lifetime Income: Waiting ensures the highest possible monthly payments, benefiting both spouses over time.

However, the decision to delay benefits may create challenges for the lower-earning spouse, especially if they rely on spousal benefits.

Optimizing Social Security for Married Couples

If the lower-earning spouse is eligible for their own retirement benefits, they could consider claiming those benefits earlier. This approach allows some Social Security income to flow in while waiting to switch to spousal benefits later.

For example:

• A wife who earned less throughout her career can claim her retirement benefits at a younger age.
• When her husband retires and claims his benefits, she can switch to spousal benefits if they offer a higher payment.

This strategy helps couples balance the need for immediate income with long-term financial optimization.

Why Financial Advice is Key

Social Security rules can be complex, especially for married couples. Working with a financial advisor can make a significant difference. Advisors can analyze your unique circumstances and help determine the best claiming strategy for both spouses.

An advisor can help you answer key questions like:

• When should the higher-earning spouse claim benefits?
• Should the lower-earning spouse claim their own benefits early?
• How can you maximize survivor benefits?

Making the right decision can ensure you and your partner get the most out of the benefits you’ve worked hard to earn.

Take Charge of Your Retirement

If you are nearing retirement, it’s essential to understand the Social Security rules that apply to your situation. For those planning to claim spousal benefits, remember:

• Claiming at your FRA ensures you receive the maximum spousal benefit.
• Waiting beyond FRA does not increase your payments.
• Spousal benefits can only be claimed if your spouse has already filed for their retirement benefits.

With the right planning and advice, you can navigate these rules and secure a comfortable retirement.

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