If your spouse outlives you, would you rather leave them a bigger monthly Social Security check for life or a few extra years of smaller checks today?
That is really what your Social Security filing strategy comes down to for a married couple: not just “When should we file?” but “How do we protect the lone survivor?”
From the Hindu Kush to Your Social Security Filing Strategy
If you are looking for a can’t-put-it-down page turner for your summer reading list, I recommend Lone Survivor. It is the firsthand account of Operation Red Wings from the only SEAL team member who survived, Marcus Luttrell, thanks to his training and an ancient Pashtun tribal code of honor known as Pashtunwali.
What does being chased through the Hindu Kush by the Taliban have to do with your Social Security benefits strategy? I’m glad you asked.
Most couples think about Social Security as: “When should we start?” I want you to think about a different question: “What happens to the one who is left?” That’s where the real planning opportunity can be.
Meet Antonio and Kate: Same Benefits Today, Very Different Outcomes Later
I recently met with Antonio and Kate. Neither of them are Navy SEALs, but Antonio is an avid swimmer and swim coach. Antonio is 66. He filed for his benefit at age 64 and is receiving $2,000 per month.
Kate had not yet filed. We’ve been talking about her Social Security decision for six years. We held off on Kate’s benefit for two reasons:
- Kate is the higher earner. Over the years, she built the stronger earnings record, so we wanted to give her benefit more runway to grow.
- They didn’t need Kate’s benefit to kick off retirement. In that situation, my general rule of thumb is: if you are in a position to wait to take Social Security, I err on the side of waiting, not rushing to file.
Why? Because of two forces that don’t get nearly enough attention in the “should I claim early?” conversation:
- How Social Security actually grows if you delay.
- How much the surviving spouse depends on the higher earner’s benefit.
Quick Refresher: How Social Security Really Works for Married Couples
Here’s the 30,000-foot view.
The Social Security Administration defines “Full Retirement Age” or FRA for anyone born in 1960 or later as age 67. Your FRA monthly benefit is based on your lifetime earnings record.
- If you file before FRA, a reduction formula is applied.
- If you file after FRA, you earn delayed retirement credits until age 70, which permanently increases your benefit.
Kate is 64, so if she files today, she receives less than her FRA benefit by that reduction formula.
This is basic Social Security math. But for married couples, especially where one spouse is the higher earner, there is another layer: when one of you dies, one check goes away, and the survivor keeps the higher of the two benefits. Your “lone survivor” is going to live on the higher earner’s benefit for the rest of their life.
So the real question isn’t just: “Should we take it early because a dollar today is worth more than a dollar tomorrow?” I believe the real question is: “Are we unintentionally shrinking the survivor benefit that one of us will depend on?”
“But Social Security Will Be Insolvent!” (Let’s Talk About That.)
During our meeting, Antonio brought up a great point about the time value of money: a dollar today is worth more than a dollar in the future because a dollar today can be invested. I 100% agree with him.
He also mentioned the latest Board of Trustees report, which says that if Congress does nothing, the Social Security trust fund is projected to be depleted around 2032 and ongoing program income would cover about 78% of scheduled benefits.
That is where we move from math to speculation.
Here’s what we know today:
- Under current projections, the trust fund is expected to be depleted in 2032 if no changes are made, at which point payroll tax revenue would cover around 78% of scheduled benefits.
- No legislation has been passed to cut benefits to 78% starting that year. Congress would have to act. There are several ways to fix the shortfall: higher payroll taxes, higher wage caps, benefit formula changes, or some combination.
Could benefits be reduced in the future? Yes.
Does that automatically mean you should rush to file as early as possible today? Not necessarily.
If you are only going to receive 78% of your benefit, would you rather receive 78% of a larger number (waiting) or 78% of a smaller number (filing early)?
I just let that sit there for Antonio and Kate.
The Lone Survivor Test: What Happens If One of You Outlives the Other?
Now back to Marcus Luttrell and the idea of a “lone survivor.”
Odds are you and your spouse are not going to cross the rainbow bridge at the same time. One of you will be the surviving spouse. That spouse will lose one Social Security check and keep the higher one.
So we pulled out Kate’s Social Security statement and got into the numbers. (Note: You can view and download your statement at ssa.gov/myaccount).
If Kate files today at 64 and 3 months:
- She receives $3,203 per month.
If she waits until 67 (2 years and 9 months from now):
- She receives $3,922 per month.
If she waits until age 70:
- She receives $4,863 per month.
As a recovering engineer, I like to play with spreadsheets and break-evens. So we walked through the math together.
Scenario 1: Kate files at 67 instead of 64
- By waiting, she is not collecting $3,203 per month for 33 months, which totals $105,699 “left on the table.”
- At 67, her benefit is $719 per month higher than if she filed at 64.
- It takes just over 12 years of that extra $719 per month to break even on the $105,699 she didn’t collect earlier.
- In other words, if she waits until 67, Kate needs to live until at least age 79 to come out ahead versus filing now. From age 79 to 90, she would collect about $94,908 more in total benefits ($517,704 vs. $422,796).
Scenario 2: Kate files at 70 instead of 64
- By waiting, she is not collecting $3,203 per month for 69 months, which totals $221,007.
- At 70, her benefit is $1,660 per month higher than if she filed at 64.
- It takes a little over 11 years of that higher benefit to make up for what she didn’t collect earlier. She needs to live until at least age 81 to break even.
- From age 81 to 90, she would collect about $179,280 more in total benefits ($525,204 vs. $345,924).
This is the break-even math everyone loves to debate.
But here’s the piece that often gets missed: while both spouses are alive, they are collecting two checks. When one spouse dies, the smaller check disappears and the larger check remains.
For Antonio and Kate, that looks like this.
- If Kate files at 67: while both are collecting, their combined Social Security income is just over $71,000 per year. The lone survivor would receive about 66% of that amount, roughly $47,000 per year.
- If Kate waits until 70: their combined annual income is just over $82,350, and the lone survivor receives about 71% of that, roughly $58,350 per year.
That is a meaningful difference for the surviving spouse. Every single year for as long as they live.
Four Questions Every Married Couple Should Ask Before Filing for Social Security
There is no one-size-fits-all answer when it comes to when to claim Social Security benefits. But if you are married, here are four questions I would want you to answer before you file:
- Do you actually need the benefits today, or are you filing out of fear that “Social Security won’t be there”?
- Who is the higher earner, and are you intentionally building that benefit for the survivor?
- What are the break-even ages for the higher earner if they file at 62, FRA, and 70?
- If one of you is the “lone survivor,” are they set up for success or just getting by?
For Antonio and Kate, if they believe they are going to live at least into their late 70s or early 80s, I lean toward waiting on Kate’s benefit. Not just because of a spreadsheet, but because it meaningfully strengthens the survivor benefit.
Is Your Social Security Strategy Built for the Lone Survivor?
Your Social Security filing strategy is one of the few retirement decisions that is:
- Irreversible once you are 12 months past your initial claim.
- Highly personal to your earnings history, health, taxes, and other income.
- Hugely impactful to the spouse who lives the longest.
We all love rules of thumb. But your decision should be based on your numbers, your life expectancy assumptions, and your survivor needs.
If you are married and within about five years of filing, this is the perfect time to run the “lone survivor” test on your Social Security strategy.
We can model:
- Different filing ages for each spouse.
- Break-even ages under multiple life expectancy assumptions.
- How your Social Security decision interacts with your IRA withdrawals, Roth conversions, and taxes in retirement.
If you want an objective, numbers-based Social Security filing strategy that also takes care of the “lone survivor,” reach out and we can walk through your specific situation before you make a decision you cannot easily undo.
Disclaimer: The views and opinions expressed are for educational purposes only as of the date of production and may change without notice at any time based on numerous factors. Federal and state laws and regulations are complex and are subject to change. This information is not intended to, and should not, form a primary basis for any decision that you may make. This information is not a specific recommendation, individualized financial planning, legal, or investment advice. Where specific advice is necessary or appropriate, individuals should contact their own professional investment advisors or other professionals to help answer questions about specific situations or needs prior to taking any action based upon this information. Any examples discussed are provided for illustrative purposes only. Individual situations will vary. All benefits are calculated in today’s dollars and before tax. The actual benefit would be adjusted for inflation and might be subject to income tax.
