Social Security spousal benefits allow a lower-earning spouse to claim up to 50% of the higher earner's Primary Insurance Amount (PIA) at full retirement age. Despite this substantial benefit, SSA data shows the majority of couples leave $50,000 to $250,000 in lifetime benefits on the table by claiming both benefits at age 62.
The claiming decision is permanent and irreversible. Claiming spousal benefits at 62 results in a 30-35% permanent reduction. Critically, spousal benefits do NOT earn delayed retirement credits past full retirement age — unlike worker benefits, there is no incentive to delay spousal claims beyond FRA.
Optimal strategies include having the higher earner delay to age 70 (increasing their benefit by 24-32% and the eventual survivor benefit) while the lower earner claims at FRA. Divorced spouses married 10+ years can claim on an ex-spouse's record without reducing the ex's benefit — a provision many eligible recipients never discover.
Originally published on WealthWise OS.