3 Hidden Social Security Secrets Every Married retiree Needs to Know

Social Security retirement benefits tend to be quite simple. You spend many years working. Once you reach an eligible age, you apply for Social Security. Then, you start receiving your benefits. Simple as pie, isn’t it?

Nevertheless, there might be several unexpected aspects regarding Social Security—particularly for those who are married. Below are three lesser-known Social Security regulations that every retired couple ought to be aware of.

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1. When your spouse claims benefits can matter a lot

It’s well-known that one partner may file for Social Security retirement benefits using the other partner's earning record. Nevertheless, the timing of when the higher earner files can significantly impact the outcome.

For example, suppose Fred's wife, Wilma, earned much more than he did during their careers. The earnings gap is so large that Fred will receive greater Social Security benefits using Wilma's earnings history than he would using his own. Fred can receive up to 50% of Wilma's Social Security retirement benefit at her full retirement age (FRA) .

Suppose Wilma decides to retire and claim her Social Security benefits before reaching her full retirement age (FRA). In addition to decreasing her own benefit amount, this action will also lessen the benefit Fred can receive.

What if Wilma waits until age 70 to claim her Social Security retirement benefits? This will increase her benefits, but not Fred's spousal benefits. Remember: Fred can only receive up to half of Wilma's benefit at her FRA However, Wilma delaying her benefit claim until she reaches 70 might assist Fred in an additional manner — by boosting his survivor benefits should Wilma pass away first.

2. Spouses can initially claim benefits based on their earnings and then later switch to spousal benefits in some cases

A lesser-known provision of Social Security allows lower-earning partners to first file for benefits using their individual work record. Later on, they may opt to change their benefit claims to those derived from their spouse’s greater earning history. Adopting this strategy has the potential to increase the total amount of retirement funds a married duo might receive.

Let's again use Fred and Wilma as our examples. Suppose Fred is three years older than Wilma. He decides to claim Social Security at his FRA of 67. Wilma is 64 at the time. She continues working until her FRA of 67 and claims her Social Security retirement benefits. Fred could then apply for spousal benefits based on Wilma's earnings history and receive higher benefits.

Nonetheless, this approach fails when one partner with greater earnings has already initiated their Social Security benefits. Consider the case where Wilma started receiving her benefits at 64 years old, whereas Fred did so later. In such a scenario, Fred’s benefit amount would depend on which figure is larger: the payment derived from his own income history or half of Wilma's benefit amount (adjusted for early claiming reductions due to collecting before reaching full retirement age).

3. One spouse working while receiving benefits can affect the other spouse's benefits

Social Security will deduct $1 from your retirement benefit for every $2 you earn above a specified annual limit if you're under your FRA for the entire year. This is called the Social Security earnings test The yearly cap stands at $23,400 in 2025. For each dollar over a specific annual threshold in the year you attain your full retirement age (FRA), Social Security will reduce your benefit by $0.33. In 2025, this particular ceiling is set at $62,160.

Nevertheless, numerous retired couples may be unaware that if one spouse continues working while collecting Social Security benefits, it could impact the other spouse’s benefit amount. This scenario often arises when a lower-income earning partner relies on the higher earner's earnings record for their own benefits.

Imagine a scenario where Fred and Wilma, as discussed earlier, start claiming their Social Security benefits simultaneously. Wilma begins at age 62, whereas Fred starts at 65. In this case, Fred’s benefits are derived from Wilma's earning record. If Wilma decides to keep working and exceeds the yearly income threshold, Social Security will reduce both of their benefits accordingly. and Fred's benefits.

The positive aspect is that these reductions are not permanent. Once you attain your Full Retirement Age (FRA), the limitations on earnings cease, and the deducted funds will eventually be returned to you gradually.

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