Mistake 2: Failing to Coordinate Spousal and Survivor Benefits

Married couples face a complex set of claiming strategies. A common and catastrophic error occurs when both spouses view their Social Security decisions in a vacuum, focusing solely on their individual benefit amounts. This oversight ignores the powerful survivor benefit rules built into the system.

When one spouse passes away, the surviving spouse inherits the larger of the two Social Security checks, and the smaller check disappears. Therefore, the claiming decision of the higher earner permanently dictates the maximum income available to the surviving widow or widower.

Imagine a couple, Robert and Susan. Robert is the primary earner. Tired of the corporate grind, he retires and claims Social Security at 62, accepting a 30% reduction. Susan has a smaller earnings history. Years later, Robert passes away. Susan’s survivor benefit is now permanently capped at Robert’s reduced rate. By claiming early, Robert essentially took a pay cut that his wife will have to live with for the rest of her life.

Retirees often wish they had coordinated their strategy by having the lower earner claim early to bring income into the household, while the higher earner delays until age 70. This approach maximizes the guaranteed, inflation-protected survivor benefit. Ensuring your spouse is financially secure after you are gone is one of the most compelling reasons to delay the higher earner’s claim.