Under Federal law a spouse cannot claim a spousal benefit unless the main beneficiary claims benefits first. However, once full retirement age (FRA) is reached (age 66 for those born between 1943 and 1954), a beneficiary can file for benefits, but then immediately suspend receipt of those benefits until some future date. By doing this, his or her spouse can claim a spousal benefit and the main beneficiary can let his or her own retirement benefit grow at 8 percent per year. In addition, if both spouses have reached FRA, it is possible for the spouse’s own benefit to grow due to delayed requirement credits if he or she elects to receive free spousal benefits. The “file and suspend strategy: is also potentially useful for couples in which only one person has reached FRA. In this case, the benefit of the main beneficiary will continue to grow, but the spouse’s benefit will not. The advantage to the spouse, however, is that he or she has the opportunity to draw a spousal benefit in addition to his or her own benefit.
If you decide to delay the process and file at full retirement age, your spouse does not have to wait to receive benefits on your account. You can “file and suspend”, according to Social Security. This is a strategy that many married couples will find valuable. File and suspend increases the Social Security claiming options for many married couples by allowing them to take advantage of spousal benefits and “delayed retirement credits” simultaneously.
Another option to consider is “free spousal” benefits, in which a married person can claim spousal benefits without also being forced by Social Security to claim their own retirement benefits. An individual is “free” to take a spousal benefit while letting his or her own retirement benefit continue to grow. If you decide to take a spousal benefit, there is a significant difference between taking it before full retirement age and taking it after full retirement age. If you are under full retirement age when you take a spousal benefit, you cannot abstain from taking a benefit on your own record. Thus, you will be stuck with a lower benefit as a result of taking it prior to your full retirement age. However, if you wait until full retirement age to claim your spousal benefit, not only will you receive a full spousal benefit equal to 50% of the primary beneficiary’s retirement benefit, but you can also switch over to your own retirement benefit at a later age. The advantage of taking “free spousal” benefits is that you are receiving the spousal benefit while your own retirement benefit grows at 8 percent a year.
