A reader writing to MarketWatch raises a common retirement planning dilemma regarding Social Security optimization. The individual, currently 64, is married to a husband who is 70 years old. She is seeking guidance on whether she should claim spousal benefits immediately or delay filing to secure her own retirement benefit.
The primary motivation behind her question is the significant financial contribution she has made to the Social Security system over her working lifetime. She expresses concern that by not strategizing correctly, she may be “leaving money on the table,” effectively forfeiting a portion of the benefits she is entitled to based on her earnings record.
This scenario highlights the complex interplay between spousal benefits and personal retirement benefits. Generally, a spouse can claim benefits based on their partner’s work record, but doing so often comes at the cost of delaying the growth of one’s own benefit, which increases for each year an individual waits past their full retirement age up to age 70. For a couple with a significant age gap, timing becomes a critical factor in maximizing total household income during retirement.
Always wait until 70 for your own benefit. Spousal only if it genuinely pays more in the short term.
My husband is four years older. We never realized this strategy existed until last year. Wish I knew sooner!
What is your actual full retirement age? That changes everything about when her own benefit peaks versus the spousal option.
This sounds like classic bait to get financial advisors hired. Is this really worth the complexity or just unnecessary stress?
We claimed spousal benefits for two years while my own grew. Best decision ever, especially given my lengthy career.