How Inflation Erodes Your Retirement Savings—and What to Do About It
How Inflation Erodes Your Retirement Savings—and What to Do About It Inflation is often called the “silent” threat to retirement, and the nickname is fitting. Unlike
For most retirees, Social Security is one of the most valuable assets they own — yet one of the least understood. The decision of when and how to claim isn’t just a matter of picking an age. For couples especially, the claiming strategy you choose can mean the difference of hundreds of thousands of dollars in lifetime benefits.
The good news: with the right strategy, many couples can significantly increase the total Social Security income they receive over their lifetimes. Here’s what you need to know.
Each spouse is entitled to their own Social Security benefit based on their earnings record. But couples also have access to additional options that single filers don’t:
You can claim Social Security as early as age 62 or as late as age 70. Here’s how timing affects your benefit:
For couples, the key insight is this: you don’t have to claim at the same time, and you shouldn’t assume you should.
Delay the Higher Earner’s Benefit This is the single most impactful strategy for most couples. Because the surviving spouse inherits the higher of the two benefits, maximizing the higher earner’s benefit protects against the financial risk of a long widowhood. Even if it means drawing down savings or having the lower earner claim early to bridge income, delaying the higher earner to 70 is often the right call.
Have the Lower Earner Claim First In many cases, it makes sense for the lower-earning spouse to claim early — providing household income while the higher earner delays. This “split strategy” balances cash flow needs today with maximizing the benefit that will ultimately support the surviving spouse.
Spousal Benefit Coordination If one spouse has a significantly lower earnings record — or no earnings record at all — the spousal benefit can be a valuable source of income. A spouse can receive up to 50% of the other spouse’s FRA benefit, but only once the higher earner has filed. Coordinating the timing of both claims to maximize spousal benefit eligibility is an important part of the planning process.
Consider Life Expectancy and Health Breakeven analysis matters here. Delaying Social Security means fewer checks but larger ones. If you or your spouse has health concerns that suggest a shorter life expectancy, claiming earlier may make more financial sense. On the other hand, if longevity runs in your family — or you simply want to plan conservatively — delaying is typically the stronger strategy.
Claiming at 62 out of habit or anxiety. Many people claim early simply because they can, or because they worry Social Security won’t be there. While the program’s long-term funding is a legitimate topic of discussion, the financial cost of claiming early is real and permanent. For most couples, patience pays.
Both spouses claiming at the same time. There’s no rule that says you have to claim together — and in most cases, it’s not optimal. Treat each spouse’s claiming decision independently and evaluate what’s best for the household as a whole.
Ignoring the survivor benefit. This is the most common and costly oversight. The decision of when the higher earner claims is really a decision about what income the surviving spouse will live on — potentially for decades. It deserves serious attention.
Social Security optimization doesn’t happen in a vacuum. The right claiming strategy depends on your overall financial picture — retirement savings, other income sources, tax situation, healthcare costs, and legacy goals. For example:
The bottom line: Social Security is too valuable to claim without a plan. For couples especially, a thoughtful strategy — coordinated with your overall retirement income plan — can meaningfully improve your financial security for decades to come.
Want to find the optimal Social Security strategy for your situation? Contact Davis Capital Management in Jacksonville, FL to schedule a conversation with one of our advisors.
This post is for informational purposes only and does not constitute financial, tax, or legal advice. Social Security rules are subject to change. Please consult a qualified professional regarding your individual circumstances.
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