Social Security Decision to Review – Make Deductions a Couples Decision

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How to Avoid the Social Security Mishap

A Common Social Security Mistake Could Harm Your Spouse

A single Social Security choice can have lasting effects on your spouse’s finances. The biggest Social Security mistake isn’t a paperwork error, it’s claiming too early, without your spouse in mind. When couples rely on Social Security, the higher earner’s claiming age determines how much the surviving spouse receives for life. Each year that the higher earner delays claiming can reduce the surviving spouse’s risk of falling into poverty by about 12%. Couples can help protect a surviving spouse by coordinating claims, testing a one-income budget, and planning ahead.

Many couples decide when to claim Social Security without fully considering the household impact. That approach ignores the fact that the higher earner’s benefit often becomes the surviving spouse’s primary source of income. When one spouse dies, two monthly checks typically drop to one. The surviving spouse keeps the larger benefit—but not both—often creating a significant budget hole. A household income typically drops between 33% and 50% when the first spouse dies according to Mantell Retirement Consulting.

When the higher earner treats Social Security as a household decision rather than an individual one, the surviving spouse is far less likely to suffer a severe financial setback. Couples have several ways to help protect a surviving spouse’s income.

  • Run survivor scenarios: Use Social Security Administration tools, compare income if the higher earner claims at 62, full retirement age, or 70.
  • Delay the higher earner if possible: Waiting longer can increase the surviving spouse’s lifetime income.
  • Use the lower earner’s benefit first: This provides income while the higher earner delays.
  • Test living on one check: Build a budget using the projected survivor benefit.
  • Revisit your plan before filing: Review your approach together or with an advisor before either spouse claims.

The timing of your Social Security claim doesn’t just affect you—it can shape your spouse’s financial security for years. Planning ahead can help avoid a painful drop in income later. For assistance in planning your future finances, feel free to talk it through with an estate planning attorney at (312) 578-9300 or info@madonia.com