There are different benefits to entering retirement as part of a married couple. For one thing, you'll have someone to spend your days with once you're no longer working. And ideally, you'll have two different retirement accounts to tap for more combined income.
Being married could also work to your advantage from a Social Security perspective. Here's why.
You may be eligible for a higher monthly benefit
If you worked long enough and earned enough, you may be entitled to a monthly Social Security benefit in retirement based on your own earnings history. But if you're married, you may end up with a higher monthly payday from Social Security by virtue of claiming a spousal benefit.
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Social Security spousal benefits pay up to 50% of the amount your spouse collects each month. Depending on what that is and what your own benefit is, you may be in line for more money via a spousal benefit.
As an example, let's say that based on your own wage history, you're entitled to $1,500 a month from Social Security. It may be that your spouse is entitled to $3,400 a month. If you wait until full retirement age to get Social Security, you could end up with 50% of your spouse's benefit instead of your own, giving you $1,700 a month instead of $1,500.
Furthermore, let's say you file for Social Security before your spouse claims their benefit, but they file a year later. In that situation, you'd start out collecting the $1,500 a month you're entitled to based on your own wage history. Once your spouse files, you'd then be entitled to $1,700 a month.
Usually, this change will happen automatically. If it doesn't, you'll have to get in touch with the Social Security Administration to follow up. But either way, know that you could end up with more money on a monthly basis.
You can't double-dip -- but you can strategize nicely
Some people who collect spousal benefits from Social Security rely on that option heavily because they're not otherwise entitled to a benefit of their own. If you're eligible for your own benefit, one thing you should know is that you can't double-dip.
Social Security will pay you the higher of your own benefit or a spousal benefit -- not both. But depending on your wage history and that of your spouse, you may be entitled to an even more generous monthly payday in retirement by virtue of being married.
Now, another thing you should know is that if both you and your spouse are entitled to Social Security on your own, you have a prime opportunity to file for benefits strategically. If your spouse is the higher earner, one thing you may specifically want to do is claim your own benefit at full retirement age to have some money coming in from Social Security, but then have your spouse delay their claim until age 70.
Doing so will give your spouse's benefit a nice boost. And then you get to capitalize on that once you're bumped up to your spousal benefit. All told, this approach could lead to more household income for you and your spouse throughout retirement.
