Social Security for Spouses: One Claims at 62, The Other Delays to 70?

When should a married couple take Social Security benefits? A split strategy with one person claiming at 62 while the other delays until 70 is a common suggestion. But why do people suggest this for married couples? More importantly, is that the right strategy for you?

We’ll review the reasons behind that suggestion in this video. While it’s not the perfect solution for every couple (in my work with clients, I rarely find that it's the best strategy), there is a method to the madness. For instance, it can bring money into the household when one person reaches age 62, which can be especially helpful when an early death occurs. It can also help to maximize a survivor benefit, and in many cases, you “unlock” the spousal benefit at a level that’s favorable.

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However, there may be reasons to avoid that spousal claiming strategy or adjust it to fit your needs. If you want to protect against longevity, the traditional split strategy may not be right for you. And when one person claims early (locking in a reduced benefit), it could be harder to use tax planning strategies that help you manage RMDs and health care premiums in retirement.

Medicare costs and healthcare from the Marketplace or Exchange may depend on your income—that’s a surprise to a lot of people.

To review this strategy, we’ll look at Open Social Security, which is a free online calculator from Mike Piper, CPA. You can enter your own numbers into that tool and get insight on your situation. You’ll see how different ages and assumptions about longevity affect the results, and you can see how the spousal benefit gets unlocked when the higher-earning spouse eventually claims.

Tools shown in this video:

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Justin Pritchard, CFP® is a fee-only fiduciary advisor who can work with clients in Colorado and most other states.

CHAPTERS:
00:00 One Spouse Claims at 62 and the Other at 70?
01:04 Reasons Behind the 62/70 Split Strategy
05:32 Will You Get 50% as a Spousal Benefit?
06:51 When it Makes Sense to Delay
11:15 Examples With Open Social Security

IMPORTANT:
It's impossible to cover everything you need to know in a video like this. The only thing that's certain is that you need more information than this. Always consult with a CPA before making decisions or filing a tax return. This is general information and entertainment, and is not created with any knowledge of your circumstances. As a result, you need to speak with your own tax, legal, and financial professional who is familiar with your details. This video is not a substitute for individualized, personal advice. For tax-free withdrawals from Roth accounts, you must satisfy specific IRS requirements. Please verify with your plan administrator when employer plans are involved. This information may have errors or omissions, may be outdated, or may not be applicable to your situation. Investments are not bank guaranteed and may lose money. Opinions expressed are as of the date of the recording and are subject to change. “Likes” should not be considered a positive reflection of the investment advisory services offered by Approach Financial, Inc. The Comments section contains opinions that are not the opinions of Approach Financial, Inc., and you should view all comments with skepticism. Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.

[JustinOnRetirement]

Note: I do not discuss offerings, pricing, etc. in these comments. Please proceed to the website, where you can find a substantial amount of detail.

[askssk]

Superb and clear video! Thank you so much. I'm 57 and my husband is 56. He's an auto mechanic and wants to stop working at 65. I'm the larger wage earner and was looking to work until FRA at 67. The Open Social Security page is a great tool.

[georgepurcell]

Super useful video, thanks. Nice to see within virtually all parameters spouse claiming at 62 and me at 70 is the optimal strategy.

[JeanPierreWhite]

That online calculator is *fire*. Woohoo!!

I entered the recommendations from the tool into my retirement planner tool and it pushed out IRMAA out an extra 10 years and reduced IRMAA from tens of thousands to $5k. A few Roth Conversions and my tax plan should be on point.

[Mark-tmyf]

One of the most informative videos I've watched online for Social Security planning fine tuning for my wife and I.

[dougs]

Thanks Sir. This is the best video with the most helpul tools. I read many articles and watched videos but you could get confused for different situations. The SSA website has good explainations but only limited to 1 or 2 examples and they don't fit everyone's situation. The tools you listed solved all these complicated situations and the tools explained very clearly (sprousal benefits or survial benefits, and others)! I played a few cases like you showed on the video and results were very clear. The SSA calculator for PIA inside the "Open Social Security" link is another great tool that you can play around to decide if you or your spouse will work more years with expected SSA wages. It seems like most questions will be self-answered once you input the data into the tools.

[donwilliams]

My wife just got a health insurance quote. She's 64, she has had some medical problems. The quote was for $1, 250 a month. That is a big consideration!

[davidfolts]

Another outstanding YouTube video from Justin Pritchard! The graphics that accompany the video are neat too.

[TM-nuvd]

All depends on one's need for cash and how much one saved over the years for retirement. Started maxing out my 401k at the age of 22 and now 58, it's grown into a great, incremental retirement. Still taking mine at age 70 as my glass is always half full and will focus on living versus how fast I will die.

[marteanderson]

As people wait longer to have children, if you have minor children when you turn 62 and you claim social security your children can also claim until they graduate high school. The key is even if you retire at 62 your children's benefit is based as if you had actually retired at Full Retirement Age. My case involved a child who collected tax free well over 1, 000 a month for 4 years which went a long ways to paying for his college at a state univerisity. This scenario isn't widely known and rarely mentioned on videos like this.

[gtrguyinaz]

Lower at 62 and higher at 70… did this and was perfect for us…

[johnnynephrite]

Sounds like the best plan is the Do Not Die plan.

[comingshortly]

This is specific for an individual’s situation. For example, if you don’t need the money you could argue to take it early and invest it. Or take it early and travel while healthy. Or you could delay and convert to Roth to fill up your tax bracket . If you are a single earner in the family, you can delay and provide a larger survivor benefit. For me I am delaying because I have inherited IRAs that need to come out before I turn 70. Also, SS colas are larger if delay and since only 85% is taxable, that will maximize the amount of tax free income.

[JeanPierreWhite]

Great video. Answered my questions and doubts.

[frankb]

Best video I've seen on when a married couple should claim.

[stevepickett]

I always struggle with the idea of maximizing my Social Security benefit versus having additional income earlier in my retirement when we can really take advantage of it. I assume that our lifestyles will be slowing down by the time we hit 67 and certainly by 70. What benefit is that extra money then? Also, if I have ANY desire to leave money to my heirs, spending down my nestegg in favor of a larger SS payout benefits them not at all. The tax and RMD ramifications are a separate issue that takes a bit more work. It's complicated and I feel like we are rolling the dice, no matter what we decide. Thanks for the great information though, including the Open Social Security calculator. That was eye opening.

[JaniceHylton]

I've been enjoying these videos. Thank you

[drp]

I am currently planning for my retirement next year and my wife's retirement in 2033. I haven't figured out how I'm going to tell her yet.

[BorselinoThadchack]

Love your videos and to be honest, according to your website, that one time fee of $685 to talk to you seems worth it. You are very knowledgeable and cool

[miketony]

My wife took hers 2 months shy of her 66th b-day (FRA) 3 years ago. I'm taking mine in January 2024 4 months shy of my 70th b-day. By taking it 4 months early I am only losing only $55.00 a month.