A popular claiming strategy still exists for some older Americans, but most younger retirees can no longer use it the way they might expect.
Social Security can be significantly more complicated for married couples than it first appears.
A spouse may qualify for benefits based on their own work record, benefits based on their spouse’s earnings record, or both. And depending on when they were born, the rules governing how those benefits can be claimed are different.
That distinction matters.
A recent MarketWatch reader question focused on a common strategy: Could someone claim a spousal benefit now, then switch to a larger benefit based on their own work record at age 70?
For some older Americans, that strategy may still be available.
For most people approaching retirement today, however, the rules have changed.
The 50% Spousal Benefit Isn’t Quite What It Sounds Like
A qualifying spouse can receive a benefit based on the other spouse’s Social Security record.
At full retirement age, the maximum spousal benefit can generally equal 50% of the worker’s primary insurance amount.
But there are several important qualifications.
The 50% figure isn’t necessarily 50% of the check your spouse receives.
And it isn’t automatically available to every married person.
Your age, your own retirement benefit, your spouse’s benefit, and when you claim all matter.
The Social Security Administration explains that when someone qualifies for both their own retirement benefit and a spousal benefit, the rules generally require the person to file for both benefits rather than freely choosing between them.
That’s where the strategy becomes complicated.
The Old “Spousal First, Own Benefit Later” Strategy
For years, one potentially valuable strategy was to claim a spousal benefit while allowing your own retirement benefit to continue growing.
For example, imagine a married woman whose own Social Security benefit at age 67 would be $1,000 per month.
Her husband has a primary insurance amount of $3,000.
At full retirement age, 50% of his primary insurance amount would be $1,500.
Under the old strategy, a qualifying person could potentially receive the spousal benefit while delaying their own retirement benefit and allowing it to earn delayed retirement credits until age 70.
That could create a larger personal benefit later.
For certain older Americans, this remains possible.
But there’s a major cutoff date.
The 1954 Birth-Date Rule
The Bipartisan Budget Act of 2015 changed Social Security’s deemed-filing rules.
For people born January 2, 1954, or later, deemed filing generally applies when they qualify for both retirement and spousal benefits.
In practical terms, they generally cannot tell Social Security:
“Pay me only the spousal benefit for now, and I’ll claim my own retirement benefit at 70.”
Instead, when they apply for one of the benefits, they are generally deemed to have applied for the other as well.
The SSA confirms that this rule extends beyond age 62 and can apply through full retirement age and later.
This is one of the most important Social Security rules married couples need to understand.
Who May Still Be Able to Use the Restricted-Application Strategy?
The rules are different for people born before January 2, 1954.
Some individuals in that group may still be able to restrict an application to spousal benefits after reaching full retirement age, allowing their own retirement benefit to continue accruing delayed retirement credits.
SSA guidance specifically recognizes this possibility for qualifying individuals born before the January 2, 1954 cutoff.
But even here, the strategy isn’t automatic.
Eligibility depends on the individual’s circumstances and timing.
That’s why anyone considering this approach should verify the details with Social Security before filing.
Why Waiting Until 70 Can Matter
There’s an important distinction between retirement benefits and spousal benefits.
Your own retirement benefit can increase when you delay claiming beyond full retirement age, generally until age 70.
Spousal benefits don’t work the same way.
A spousal benefit generally reaches its maximum at full retirement age. Waiting beyond full retirement age does not generate the same delayed-retirement credits on the spousal benefit itself. The Motley Fool has highlighted this distinction in its recent coverage of spousal benefits.
That’s why a couple needs to know exactly which benefit is being delayed.
Waiting until 70 can be valuable for your own retirement benefit.
It isn’t necessarily beneficial to delay a spousal benefit beyond full retirement age.
A Simple Example
Consider a hypothetical married couple.
The husband has a primary insurance amount of $3,000.
His wife has a retirement benefit of $900 based on her own earnings.
At her full retirement age, her maximum spousal benefit could be based on 50% of her husband’s $3,000 primary insurance amount, or $1,500.
Because her own benefit is $900, she could potentially receive her own benefit plus a spousal supplement that brings her total benefit up to the applicable spousal amount.
But the timing matters.
If she claims before full retirement age, the spousal benefit can be reduced.
And if she was born January 2, 1954 or later, she generally cannot simply take the spousal benefit while allowing her own retirement benefit to grow untouched until age 70.
That’s the part many simplified Social Security articles miss.
The Higher Earner’s Decision May Be Even More Important
For many couples, the bigger decision isn’t whether the lower earner can claim a spousal benefit.
It’s when the higher earner should claim their own benefit.
Delaying the higher earner’s retirement benefit can produce a larger monthly benefit later.
It can also affect the household’s potential survivor benefit.
That makes claiming decisions particularly important when one spouse has a substantially larger earnings record.
A couple might therefore consider:
- Claiming both benefits earlier
- Having the lower earner claim first
- Having the higher earner delay
- Waiting until full retirement age
- Having the higher earner delay until 70
The optimal choice depends on the couple’s circumstances.
There is no single strategy that is best for everyone.
Don’t Forget Survivor Benefits
This is one of the biggest reasons couples shouldn’t evaluate Social Security only by looking at their first monthly checks.
A surviving spouse may be entitled to a benefit based on the deceased spouse’s record.
Survivor benefits have different claiming rules from regular retirement and spousal benefits. SSA specifically states that deemed filing does not apply to survivor benefits in the same way it applies to retirement and spousal benefits.
For couples with a significant difference in their Social Security benefits, this can make the higher earner’s claiming decision especially important.
A larger benefit for the higher earner can potentially translate into a larger survivor benefit later.
What About Divorced Spouses?
Marriage isn’t the only relationship that can create eligibility for benefits based on another person’s earnings record.
Some divorced individuals can qualify for benefits based on an ex-spouse’s record if they meet Social Security’s requirements.
Generally, the marriage must have lasted at least 10 years, and other conditions apply.
This means someone who is divorced shouldn’t automatically assume their former spouse’s Social Security record has nothing to do with their retirement income.
The rules can be particularly different when survivor benefits are involved.
The Biggest Mistake Is Filing Without Understanding the Rules
Social Security decisions can be difficult to reverse.
And because benefits can continue for decades, a seemingly small claiming decision can have a substantial cumulative effect.
That’s why married couples shouldn’t make a decision based solely on a headline such as:
“Claim 50% of your spouse’s Social Security.”
The headline leaves out the questions that actually determine the result:
How old are you?
When were you born?
What is your own estimated retirement benefit?
What is your spouse’s primary insurance amount?
Has your spouse filed?
Are you at full retirement age?
Are you considering survivor benefits?
Those details can completely change the answer.
A Better Way to Think About Social Security
Instead of asking:
“When should I claim Social Security?”
Married couples may want to ask:
“What claiming strategy produces the best combination of income for both spouses during retirement and the best protection for the surviving spouse?”
That’s a much more useful question.
The goal isn’t necessarily to maximize the first monthly check.
It’s to create a sustainable income strategy that considers both spouses over the course of retirement.
What Couples Should Check Before Filing
Before claiming, married couples should review their individual Social Security estimates and compare several scenarios.
At minimum, consider:
1. Both spouses claim at 62
This provides income sooner but can permanently reduce retirement benefits.
2. Both wait until full retirement age
This generally provides a larger monthly benefit than claiming early.
3. Lower earner claims earlier while higher earner delays
This can provide some household income while allowing the higher earner’s retirement benefit to grow.
4. Higher earner waits until 70
For someone who can afford to delay, this can significantly increase their own monthly retirement benefit and may also strengthen the survivor benefit.
5. Special rules for older birth cohorts
People born before January 2, 1954 should investigate whether they qualify for a restricted application strategy.
The right answer depends on the couple.
The Bottom Line
Social Security spousal benefits can be valuable, but the rules are not as simple as many headlines suggest.
A qualifying spouse can potentially receive up to 50% of the higher earner’s primary insurance amount at full retirement age.
But claiming earlier can reduce the benefit.
And the popular strategy of taking a spousal benefit while allowing your own retirement benefit to grow until 70 is not generally available to people born January 2, 1954 or later because of the deemed-filing rules.
For certain older Americans, the restricted-application strategy may still be available.
For everyone else, the more important question is how the couple coordinates their own retirement benefits, spousal benefits and potential survivor benefits.
The takeaway is straightforward:
Don’t assume your spouse’s Social Security strategy is the same as your parents’—and don’t file until you understand which rules apply to you.
For a decision that can affect decades of retirement income, spending a little more time understanding the rules could be worth far more than simply claiming the first benefit you’re eligible to receive.
This article is for informational purposes only and does not constitute individualized financial advice. Social Security eligibility and benefit amounts depend on individual circumstances. Check your specific situation with the Social Security Administration or a qualified financial professional before making a claiming decision.
