The 100% Survivor Lock-In: Why the Higher Earner’s Social Security Claiming Age Rules the Whole Household
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Claiming Social Security is a tough decision no matter what. That’s because the filing age you choose will impact how much the program pays you for the rest of your life.
But if you’re the higher earner in your household, there’s even more pressure to get your Social Security claim right. The reason? Your claiming age determines how much money your spouse might receive if they outlive you.
How Social Security survivor benefits work
If you’re the higher earner in your household and you pass away before your spouse does, they’ll typically be eligible for survivor benefits from Social Security. Those benefits will be equal to 100% of the monthly check you collected while you were alive.
That’s why it’s important to put a lot of thought into your claim.
If you file for Social Security ahead of full retirement age (FRA) and reduce your benefits in the process, you won’t just be slashing your own checks. If your spouse ends up eligible for survivor benefits, they’ll get less money each month for the rest of their life, too.
On the flip side, if you delay your Social Security claim past your FRA, you’ll boost your benefits. That boost carries on to your spouse, and they’ll then receive larger payments each month for the rest of their life.
Larger benefits could buy your surviving spouse more peace of mind for a couple of reasons. First, more money offers added buying power. But also, Social Security benefits are eligible for a cost-of-living adjustment every year. The larger your spouse’s survivor benefits are to begin with, the more meaningful those annual raises are apt to be.
Talk things through with your spouse
You may have your reasons for wanting to file for Social Security at a certain age, whether it’s early, late, or on time. But before you make your decision, talk to your spouse about how it might impact their survivor benefits and see what they have to say.
You should also take your broad income picture into account when making your decision. If you have a nice amount of money saved for retirement and aren’t super reliant on Social Security to make ends meet, you may decide that it’s safe to file for benefits early to get the money sooner — even if it means smaller survivor checks for your spouse.
On the other hand, if you don’t have a lot of savings and expect Social Security to be your household’s primary retirement income source, waiting until at least FRA to file for benefits could make sense. You may even, in that situation, want to delay your Social Security claim so your spouse gets larger checks.
Remember, if your spouse outlives you and ends up needing extended care, you won’t be around to provide it. Your spouse might have to pay for that care, so collecting larger Social Security checks could help cover the cost.
Either way, discussing your options with your spouse at length could help ensure that there are no hard feelings once the decision is made.
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Maurie Backman has more than a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. Her work has appeared on sites that include The Motley Fool, USA Today, U.S. News & World Report, The Washington Post, and Kiplinger.
Prior to becoming a full-time financial writer, Maurie worked in the financial industry trading distressed debt. She then changed course and spent a few years designing electronic toys. After a stint in content marketing and UX, she shifted back into writing and has since covered everything from the housing market to estate planning to Medicare.
When she's not busy writing, Maurie can be found hiking, walking her dogs, driving her kids to their various sports practices and games, and curling up with a good book. She cooks on occasion and bakes way too often.
