Tip #4: Leverage Spousal and Survivor Benefits

The Social Security system offers incredible protections for married couples, widows, and widowers. When examining Social Security 1985 figures, the average benefit for spouses hovered around $246 per month. While that provided a helpful supplement, modern spousal and survivor benefits deliver a much more substantial lifeline. Today, a non-working spouse can claim up to 50% of the higher-earning spouse’s full benefit amount. If your partner earned a high salary, your spousal benefit alone could easily eclipse the average worker’s check from the 1980s.

To fully optimize your household income, you must coordinate your claiming strategies. If you and your spouse both worked, the Social Security Administration automatically pays out the higher of the two available amounts: your own earned benefit or your spousal benefit. You cannot receive both simultaneously, but the system ensures you receive the maximum single payout you qualify for.

Survivor benefits require even more careful planning. When a spouse passes away, the surviving partner inherits the larger of the two Social Security checks. Because of this rule, the higher earner in a marriage holds a profound responsibility. When the higher earner delays claiming until age 70, they permanently maximize the survivor benefit. If you outlive your spouse, that bolstered check provides immense comfort and stability during a difficult transition.

Open a dialogue with your partner about your long-term goals. Map out your respective ages, earnings histories, and health outlooks. Consider having the lower-earning spouse claim benefits early to provide immediate household liquidity, while the higher earner waits until age 70. This dual approach gives you cash flow today and maximized survivor protection for tomorrow. Navigating the rules together fortifies your marriage against financial uncertainty.

If you are divorced, do not overlook your potential eligibility for ex-spousal benefits. Provided your marriage lasted at least ten years and you remain currently unmarried, you can claim benefits based on your ex-spouse’s earnings record. Doing so does not reduce their payout or the payout of their current spouse. Explore every avenue available to ensure you leave no money on the table.