How to Maximize Social Security Benefits
Most people understand that waiting to claim Social Security can result in higher monthly payments. But many don’t realize there are additional Social Security benefit strategies to boost lifetime income — and some of the most effective ones depend on your marital status.
Before diving into specific Social Security claiming strategies, it helps to understand the three basic forms of retirement benefits.
The Three Types of Social Security Benefits
The Worker Benefit
This is the benefit you receive based on your own personal earnings history. You become eligible after accumulating 40 quarters (10 years) of work.
Social Security Spousal Benefits
This is the benefit paid to your spouse:
- Non-working spouses receive 50% of the working spouse’s benefit.
- Working spouses receive the greater of their own earned benefit or 50% of the worker’s benefit.
Social Security Survivor Benefits
This is the benefit paid to a surviving spouse. It’s calculated at a rate equal to the greater of the survivor’s own current benefit or the deceased spouse’s benefit — with the exact percentage depending on the survivor’s age when they claim it (more on this below).
When to Claim Social Security Benefits for Maximum Payout
The most straightforward strategy for maximizing your Social Security benefit is delaying your claim until age 70. For workers whose full retirement age is 67 — the current full retirement age for anyone born in 1960 or later — waiting until age 70 increases your monthly benefit by approximately 24% above your full retirement age amount, not including any cost-of-living adjustments that may apply. This increase comes from delayed retirement credits, which accrue at roughly 8% per year for each year you wait past full retirement age, up until age 70.
Social Security Benefit Strategies for Widows and Widowers
There’s an important distinction to understand: there is no spousal benefit for a widow or widower. Instead, a surviving spouse qualifies for a survivor benefit, which can be claimed as early as age 60.
However, the amount depends heavily on timing:
- Claiming the survivor benefit at exactly age 60 provides roughly 71.5% of the deceased spouse’s benefit.
- The percentage gradually increases the longer you wait.
- Claiming at your own full retirement age provides 100% of the deceased spouse’s benefit.
Because there are no delayed retirement credits earned on survivor benefits, there’s no advantage to waiting past full retirement age to apply for them — the benefit doesn’t continue growing after that point.
If You’re Widowed and Have Also Worked 40 Quarters
If you’re widowed and have also worked long enough to qualify for your own worker benefit, you have both a worker benefit and a survivor benefit available to you. This gives you several claiming strategies to consider:
- File for whichever benefit is larger. One straightforward option is simply choosing the benefit that provides the greatest monthly amount.
- Start with the worker benefit, then switch to the survivor benefit. Starting your worker benefit at age 62 and switching to the survivor benefit once you reach your full retirement age can be advantageous if you didn’t accumulate the same level of benefits as your deceased spouse. This approach lets you eventually claim the higher survivor benefit amount at its maximum rate.
- Start with the survivor benefit, then switch to your own worker benefit. Beginning the survivor benefit at age 60 and switching to your own worker benefit at age 70 lets you start receiving income as early as possible, while giving your own worker benefit time to grow toward its maximum value through delayed retirement credits.
Putting These Social Security Claiming Strategies to Work
As you can see, there are several ways to potentially raise your Social Security benefits beyond the basic strategy of delaying retirement to age 70. Choosing the right approach depends on your individual earnings history, marital status, and financial goals.
If you live in Fort Myers or elsewhere in Southwest Florida, working with a financial professional familiar with these claiming strategies can help you sequence your worker, spousal, and survivor benefits in a way that fits your retirement income plan.
Frequently Asked Questions
How can I maximize my Social Security benefits?
The most direct way is delaying your claim until age 70, which increases your monthly benefit through delayed retirement credits. Beyond that, strategies involving spousal and survivor benefits — particularly for widows and widowers — can further increase lifetime income depending on your situation.
What is the difference between a spousal benefit and a survivor benefit?
A spousal benefit is available to a living spouse and is generally up to 50% of the working spouse’s benefit. A survivor benefit is available to a widow or widower and can be up to 100% of the deceased spouse’s benefit, depending on the age at which it’s claimed.
At what age can I claim a Social Security survivor benefit?
A survivor benefit can be claimed as early as age 60, though claiming that early results in a reduced benefit — roughly 71.5% of the deceased spouse’s benefit. Waiting until full retirement age provides the full 100%.
How much does waiting until age 70 increase my Social Security benefit?
For those with a full retirement age of 67, delaying benefits until age 70 increases the monthly amount by approximately 24%, not including cost-of-living adjustments.
If I’m widowed and also worked 40 quarters, what are my options?
You can choose to file for whichever benefit — worker or survivor — is larger, start your worker benefit early and switch to the survivor benefit later, or start the survivor benefit early and switch to your own worker benefit at age 70.
Should I work with a financial professional on my Social Security claiming strategy?
Yes. Because these strategies involve several moving parts and depend on your individual earnings history and marital status, a financial professional can help you determine the approach that best supports your retirement income goals.
