How to Maximize Your Joint Social Security Benefits for Married Couples

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This strategy we will discuss is one you can use as a married couple to maximize the benefits that you and your spouse get from Social Security.

Have you ever heard the expression 1+1=3?

Most people just think, I have benefits, my spouse has benefits, but they don't really think about how their benefits could work together.

When it comes to Social Security we know that you can collect early, wait until full retirement age, or you can delay your benefits to as late as age 70.

However, there are other options. Depending on when you collect, you and your spouse may be able to switch between benefits. We call these alternatives hybrid strategies.

One hybrid strategy is known as file and suspend. This strategy works well for couples that both have a pretty decent benefit based off their own work record.

Let's look at an example:
The traditional method of collecting benefits would be for George and Susan to both begin collecting their own benefits at age 66 when they reach full retirement age.

However, there may be a better way to maximize their benefits.

Once they both reach their full retirement age, George can file for his own benefits, then immediately suspend them.

Because George and Susan are both at their full retirement age, Susan can then collect her spousal benefit of $1,100/month, half of George's full retirement age benefit.

This allows them both to each grow their own benefits to as late as age 70. Remember, you get an 8% increase in your Social Security benefits for every year that you delay past your full retirement age until you turn 70.

At age 70, George would then turn on his income of $2,904/month, and Susan can then switch over to her own benefit of $1,980/month.

If George and Susan had both started collecting at their full retirement age, their combined total would have been $3,700/month.

With this strategy, they would get $1,100/month from age 66 to 69. Then at age 70 their combined benefit would be $4,884/month.

By giving up $2,600/month for 4 years, they get an $1,184/month increase for the rest of their life after age 70.

Letting George's benefit grow to age 70 also maximizes the survivor benefit for Susan.

Remember, there are a lot of factors to consider when deciding when and how to maximize your Social Security benefits. Before implementing any strategy, be sure to talk with a financial professional that can help you review all your options.

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