There are different advantages to being married as a retiree. For one thing, retirement can be pretty isolating. Instead of going to work every day and engaging with colleagues, you're now doing your own thing, and that has the potential to get lonely. But having a spouse around to spend time with might soften that blow.
Plus, being married means you don't have to take care of life's many nuisances all on your own. If your home needs maintenance, you and your spouse can split the load. And one of you can cook while the other runs errands to free up time for other activities you do jointly.
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Being married in retirement could also have some financial advantages. If both you and your spouse worked for many years, then you might each be entitled to a monthly benefit from Social Security in retirement. And you can coordinate your filings to make the most of that income stream.
It's common, for example, for couples to have the lower-earning spouse claim Social Security first to have some money coming in while the higher-earning spouse delays their filing for a higher monthly benefit for life. And if you're married, you can also look at collecting spousal benefits if that's financially advantageous to you.
But it's also important to remember that when one member of a married couple passes away, the remaining member is entitled to survivors benefits from Social Security. And it's a good idea to factor survivors benefits into your filing decision.
How survivors benefits work
If you're married and pass away, your surviving spouse will be entitled to survivors benefits from Social Security that will equal 100% of the sum you received while you were alive. So if your monthly benefit amounts to $2,000, your surviving spouse will get $2,000 a month from Social Security as long as he or she doesn't file before full retirement age. That's something to consider carefully when making your filing decision.
Let's say you're inclined to claim Social Security at age 65 so that you and your spouse can retire a bit early and use that money to cover your expenses. If your full retirement age doesn't arrive until 67, a filing at 65 will result in a smaller monthly benefit for life. And if you pass away ahead of your spouse, you'll leave your loved one with that smaller monthly benefit for the rest of their life as well.
In fact, if you're worried about your spouse's ability to cover expenses in your absence, then you may want to delay your Social Security filing all the way until age 70. That's when delayed retirement credits can no longer be accrued, but it's also the age that renders you eligible for the highest monthly benefit you can get based on your personal earnings history.
Have the conversation
Survivors benefits are something you should consider before claiming Social Security. But also, if you're married, you shouldn't make your filing decision alone. Rather, get your spouse's input.
Being married often means making big financial decisions together. And signing up for Social Security should really be no exception.
