Social Security Strategy - 2 Income Couples

The last blog presented the best strategy to maximize Social Security benefits for a couple where 1 spouse was the primary earner. This blog presents the strategy to maximize Social Security benefits for a couple where both people work.

In this situation, both people have Social Security benefits based upon their individual earning record. Making the assumption that both people are roughly the same age, the question who should collect benefits first?

The answer is the one with the lower amount of benefits. The reason is based upon the total benefits received for the couple during the life span of both people.

1. The individual with the larger amount of benefits will continue to grow at a faster rate if she/he continues to work.
2. If the person with the higher benefits dies first, the widow's benefit amount will increase to the rate of the deceased.
3. If the person with the lower benefits dies first, the widow's benefit amount remains the same.

By having the person with the highest benefit work longer it gives the couple a higher amount of benefit while living and can give the widow a higher benefit in the future.

Each situation can be unique so it would be advisable to sit down with a professional and run the numbers to determine the best strategy based upon a number of factors.