Most married couples approach Social Security claiming with one question in mind: When should we file to maximize our retirement income?Financial advisers say there’s another question that deserves just as much attention.What happens to the surviving spouse after the first death?New research suggests the answer may hinge, in part, on when the higher-earning spouse claims Social Security.A new study by economist Sita Slavov of George Mason University and the TIAA Institute found that when husbands delayed claiming Social Security, their widows experienced a smaller financial shock after widowhood because they inherited a larger survivor benefit.The study found that each additional year a husband delayed claiming reduced the severity of the widow’s income decline by roughly 12%, with most of that protection occurring during the first four years after his death.The findings reinforce what many retirement-income specialists have argued for years: Delaying Social Security for the higher-earning spouse isn’t simply a strategy for increasing monthly income. It can also serve as a form of financial protection for the spouse who lives the longest.Why delaying Social Security matters after one spouse diesMany retirees underestimate how dramatically a household’s finances can change after the death of a spouse.While some expenses decline, household income often falls even faster.One Social Security check disappears. A pension may be reduced if it doesn’t include a full survivor benefit. At the same time, the surviving spouse typically begins filing taxes as a single taxpayer while continuing to take required minimum distributions from retirement accounts. The result can be higher taxable income, a larger tax bill, and higher Medicare premiums.For many households, widowhood represents one of the largest financial transitions they’ll ever experience.Social Security survivor benefits can help cushion that blow.Under current rules, the surviving spouse generally keeps the larger of the two Social Security benefits. That means the claiming decision made by the higher-earning spouse may continue affecting household income for years after that person’s death.
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A larger retirement benefit can become a larger survivor benefitThe mechanics are straightforward.Workers who claim before full retirement age (FRA) permanently reduce their monthly benefit.Those who wait beyond FRA earn delayed retirement credits that increase benefits by roughly 8% annually until age 70.For someone whose FRA benefit is $2,000 per month, claiming at age 62 would produce a benefit of roughly $1,400 per month. Waiting until age 70 would increase that benefit to about $2,480 per month. If that individual is the higher-earning spouse and dies first, that larger monthly benefit generally becomes the survivor benefit available to the surviving spouse.Viewed through that lens, delaying Social Security isn’t simply about maximizing one person’s retirement income. It can increase guaranteed lifetime income for whichever spouse lives longer.Survivor planning should be part of every claiming discussionHeather Schreiber, founder of HLS Retirement Consulting, said the study reinforces the need to treat Social Security as part of a broader retirement income plan rather than an isolated claiming decision.Instead of focusing exclusively on break-even ages or maximizing lifetime benefits, advisers should illustrate what happens to household income after the first spouse dies, she said.That conversation should include not only survivor benefits but also taxes, cash flow, portfolio withdrawals and the overall retirement income strategy.The goal shifts from asking, “What if I don’t live long enough to benefit from delaying?” to a more important planning question: “How long does our household need guaranteed lifetime income?”The decision affects more than Social SecurityBrad Pistole, CEO of Ozarks Retirement Group, said couples should evaluate claiming decisions in the context of their entire retirement plan, rather than viewing Social Security in isolation.For many retirees, delaying Social Security means relying on savings, pensions, or retirement accounts to bridge the income gap until benefits begin.That strategy may also create opportunities to withdraw money from traditional IRAs before required minimum distributions (RMDs) begin, potentially reducing future taxable distributions while allowing Social Security benefits to continue growing.Pistole also says couples should evaluate how claiming decisions affect the surviving spouse’s long-term income, instead of focusing only on the years when both spouses are alive.Delaying isn’t the right answer for everyoneThe new research shouldn’t be interpreted as a universal recommendation to wait until age 70.Claiming earlier may make sense for retirees facing serious health challenges, shorter life expectancies, or immediate income needs. Others may lack sufficient savings to bridge the years between retirement and a later claiming age.The decision should also account for other retirement assets, employment plans, and the couple’s overall financial situation.For that reason, advisers generally recommend evaluating Social Security as part of a comprehensive retirement income plan.Questions every married couple should askBefore filing for Social Security, couples may want to discuss several questions:Which spouse is likely to leave the larger survivor benefit?How much household income disappears after the first death?Can savings or retirement accounts provide enough income to delay benefits?How will widowhood affect taxes, Medicare premiums, and portfolio withdrawals?Does our claiming strategy maximize guaranteed income for the spouse who is likely to live the longest?The bottom lineMost retirees think of delaying Social Security as a way to receive a larger monthly check.The new research suggests there’s another reason to consider waiting.For many married couples, particularly when the higher-earning spouse is in good health and has the resources to delay claiming, waiting to file may be one of the simplest ways to strengthen the surviving spouse’s financial security.That’s a conversation worth having before the first Social Security application is filed.Related: How much will Social Security really pay you in retirement?