Social Security is a household decision.
When each spouse claims decides how much you collect, what a surviving spouse keeps, and whether a benefit can pay for something bigger. Learn the basics, see your own numbers, and read how one couple put it to work.
Four rules that drive the decision
62, 67 or 70
70% · 100% · 124%Claim at 62 and the benefit is reduced for life. Wait past full retirement age (67) and it grows 8% a year to 70. A $2,000 benefit at 67 is $1,400 at 62 or $2,480 at 70.
The larger check stays
When one spouse dies, the survivor keeps the larger of the two benefits. That makes the higher earner's claiming age a decision for both of them.
The earnings test
Claim before 67 while still working, and Social Security withholds $1 for every $2 earned over the annual limit.
Up to 85% taxable
Depending on other income, up to 85% of a benefit is taxed as income. What you keep after tax is what you can spend or put to work.
Your options, with your own figures
Bring your Social Security statements. In 30 minutes by phone or video, we compare claiming ages for you and your spouse using your own benefit amounts, not an example.
Three questions every couple at 50 should ask
Follow one couple from 50 to 70. Each part answers one question, in a 1-page flow chart or a full case study.
She claims early and her $13,658 a year pays his premium. He waits until 70, so she keeps the larger check, plus a tax-free death benefit.
Term bought at 50 locks in his insurability. Through his 401(k) it costs $0 from his paycheck, and he keeps $17,624 of pay over 12 years.
Contribution DI keeps his savings growing, the waiver pays his premiums, and she keeps her full benefit. $386,681 of added value by 85.
Social Security, Qualified Life and Contribution DI: one plan
If your employer offers Qualified Life, the three fit together: term bought through your 401(k) keeps you insurable, Contribution DI keeps your retirement savings going if you can't work, and a Social Security plan can pay for permanent coverage later.
Term through your 401(k)
$596net cost for $1,000 of term in our example, against $1,429 of pay on your own. Read Part I →
Your 401(k), protected
$7,500a year paid into your 401(k) to 65 if you are disabled, in our example. Read The Redirect →
Claiming as a plan
$5,854a year more for life when the waiver pays the premium and she claims at 67. Read Part III →
Start where you are
No employer plan? The Social Security strategy still works, and term can be bought on your own (Part II, Route 2).
Find your path
Five quick questions point you to the pieces written for where you are now. Start →
Policy review
See whether a policy bought years ago still fits your plan. Request a review →
Book a call
30 minutes by phone or video with an AIB professional. Pick a time →
Case studies are hypothetical and for education; Social Security amounts are examples. Your own claiming decision should be based on your Social Security record. Social Security rules can change. Advanced Insurance Brokerage does not provide tax or legal advice.