3 Little-Known Social Security Rules All Married Retirees Should Know

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3 Little-Known Social Security Rules All Married Retirees Should Know

Social Security retirement benefits are usually straightforward. You work for years. You file for Social Security once you’re old enough to do so. You receive the benefits. Easy-peasy, right?

However, there can be some twists and turns with Social Security — especially when you’re married. Here are three little-known Social Security rules all married retirees should know.

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It’s no secret that one spouse can claim Social Security retirement benefits based on the other spouse’s earnings history. However, when the higher-earning spouse claims benefits can matter a lot.

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

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Let’s say, though, that Wilma retires and claims Social Security benefits before her FRA. This will not only reduce her benefit amount, it will also reduce Fred’s benefit.

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’s holding off until age 70 could potentially help Fred in another way — by increasing his survivor benefits if Wilma dies before him.

Another Social Security rule that not everyone knows about is that lower-earning spouses can initially claim benefits based on their own earnings history, and then later switch to spousal benefits (claiming benefits based on their higher-earning spouses’ earnings history) in some cases. This approach could maximize the overall retirement benefits a married couple receives.

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.

However, this strategy doesn’t work when a higher-earning spouse has already claimed Social Security benefits. For example, suppose Wilma claimed her benefits at age 64 when Fred claimed his benefits. Fred’s benefits will be based on whichever is higher: The benefits based on his earnings record, or 50% of Wilma’s benefits based on her earnings record (with early retirement penalties applied since she claimed benefits before her FRA).

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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

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. The annual limit is $23,400 in 2025. Social Security will deduct $1 for every $3 you earn above a higher annual limit in the year you reach your FRA. This higher limit is $62,160 in 2025.

However, many married retirees might not realize that one spouse continuing to work while receiving Social Security benefits can affect the other spouse’s benefits. This can happen when a lower-earning spouse receives benefits based on a higher-earning spouse’s earnings record.

Let’s suppose Fred and Wilma from our previous examples claim Social Security benefits at the same time. Wilma is 62, while Fred is 65. Again, Fred’s benefits are based on Wilma’s earnings history. Now suppose that Wilma continues to work and earns more than the annual earnings limit. Social Security will deduct from both her benefits and Fred’s benefits.

There is some good news, though. These deductions are only temporary. The earnings limits go away once you reach your FRA, and the money withheld will be repaid over time.

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after.

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