The decision regarding when to claim Social Security benefits is a hotly debated topic. But with all the complexities involved, for most it comes down to what seems like a simple choice: do I take a smaller amount as soon as I can, or do I delay gratification for a guaranteed larger payout later?
Today as we focus on Social Security here on the Blog, we want to bring you this timely article from The Street, written by Robert Powell. He’s a Senior Editor with The Street and also a certified financial planner. In his analysis of the question, Powell reminds us of a critical question many articles on Social Security overlook – namely that the choice you make today to take early benefits will very likely cost your widow tens of thousands of dollars after you’re gone.
This hidden cost is greatest for couples where one spouse has earned considerably more than the other – a fairly common scenario. The death of the higher earner often creates a financial shock for the survivor. Now, says Powell, there’s new research that shows in a measurable way how much your choice to delay taking benefits can ease the financial burden of your death.
We think that this surviving spouse benefit ought to be a key element in your Social Security claiming strategy.
Key Questions for Married Couples Claiming Social Security Benefits
In Powell’s experience, most married couples approach the idea of claiming Social Security with one question in mind: “When should we file to maximize our retirement income?”
But, he says, experts warn that that might not be the only issue to consider. Another question that deserves just as much attention is this: “What happens to the surviving spouse after the first death?”
The answer, according to new research, may depend in part on when the higher-earning spouse starts to claim Social Security.
Research Shows How Survivor Benefits Protect Household Finances
This research comes to us from a new study conducted by the TIAA Institute and Sita Slavov, an economist at George Mason University. In it, experts found that widows experienced a smaller financial shock after widowhood and inherited a larger survivor benefit when their husband delayed claiming Social Security.
“The study found that each additional year a husband delayed claiming reduced the severity of the widow’s income decline by roughly 12 percent, with most of that protection occurring during the first four years after his death,” Powell writes.
These findings, he says, reinforce what many specialists in the field of retirement finances already know and have argued for a long time: delaying Social Security can act as a form of financial protection for the longer-living spouse.
The Death of a Spouse Triggers Financial Challenges for Survivor
According to Powell, many retirees underestimate the effect the death of a spouse can have on the household’s finances. Some expenses decline, he says, but household income can drop dramatically.
“One Social Security check disappears,” he writes. “A pension may be reduced if it doesn’t include a full survivor benefit. At the same time, the surviving spouse typically begins filing taxes as a single taxpayer while continuing to take required minimum distributions from retirement accounts. The result can be higher taxable income, a larger tax bill, and higher Medicare premiums.”
Social Security Rules Protect Widows by Preserving the Higher Monthly Benefit
Widowhood, he adds, can be one of the largest financial transitions an individual can experience. Social Security benefits can “cushion that blow” and form a safety net during a particularly challenging change.
“Under current rules, the surviving spouse generally keeps the larger of the two Social Security benefits,” he explains. “That means the claiming decision made by the higher-earning spouse may continue affecting household income for years after that person’s death.”
Delaying Social Security After Full Retirement Age Increases Income
Powell calls the mechanics of this “straightforward”—employees who claim their Social Security benefits before their full retirement age (FRA) will permanently reduce the amount they receive in their monthly benefit, while those who wait until after FRA earn delayed retirement credits that increase their benefits by about 8 percent annually until they turn 70.
(Editor’s note: recent data shows that, in 2025, 60 percent of Social Security claimants took benefits before full retirement age.)
“For someone whose FRA benefit is $2,000 per month, claiming at age 62 would produce a benefit of roughly $1,400 per month. Waiting until age 70 would increase that benefit to about $2,480 per month,” Powell explains. “If that individual is the higher-earning spouse and dies first, that larger monthly benefit generally becomes the survivor benefit available to the surviving spouse.”
Building Guaranteed Lifetime Income into Your Retirement Income Strategy
Of the study, Heather Schreiber—founder of HLS Retirement Consulting—says that it proves Social Security should be treated as part of a broader plan of income in retirement, rather than just an isolated claiming decision. It should be clearer to both spouses, she says, how a decision will affect the surviving spouse after the first dies.
“That conversation should include not only survivor benefits but also taxes, cash flow, portfolio withdrawals and the overall retirement income strategy,” Powell adds, saying that the goal should shift from asking, “What if I don’t live long enough to benefit from delaying?” to the more apt planning question: “How long does our household need guaranteed lifetime income?”
Evaluating When to Claim Early vs Delaying Benefits for Retirement
Powell does suggest that this study shouldn’t be taken as a general sign that all households should wait until age 70 to start claiming.
“Claiming earlier may make sense for retirees facing serious health challenges, shorter life expectancies, or immediate income needs,” he explains. “Others may lack sufficient savings to bridge the years between retirement and a later claiming age.”
He adds, “The decision should also account for other retirement assets, employment plans, and the couple’s overall financial situation. For many retirees, delaying Social Security means relying on savings, pensions, or retirement accounts to bridge the income gap until benefits begin.”
In short: Social Security should be considered as one part of a comprehensive retirement income plan.
Essential Social Security Strategy Considerations Prior to Filing
Before filing for Social Security, couples may want to discuss several important factors regarding their shared future.
First, consider income disparity and identify which spouse is likely to leave the larger survivor benefit.
Next, examine potential financial dislocation at death to calculate how much household income disappears after the first spouse passes away.
Couples must also evaluate strategies for bridging the gap, determining if savings or retirement accounts can provide enough income to delay benefits until a later age.
Additionally, review other financial considerations to understand how widowhood will affect taxes, Medicare premiums, and portfolio withdrawals.
Finally, weigh the long-term impact to ensure your overall claiming strategy maximizes guaranteed income for the spouse who is likely to live the longest.
The Financial Benefits of Delaying Social Security for Surviving Spouses
Powell concludes his article by restating that delaying Social Security, in some cases, may be the wisest move.
“For many married couples, particularly when the higher-earning spouse is in good health and has the resources to delay claiming, waiting to file may be one of the simplest ways to strengthen the surviving spouse’s financial security,” he writes. “That’s a conversation worth having before the first Social Security application is filed.”
Using a Financial Dashboard to Optimize Retirement Planning Decisions
Clearly, retirement planning demands a careful and proactive approach to budgeting and spending. When we asked Rajiv Nagaich to comment on Social Security claiming strategy, he highlighted the chief planning tool he often recommends: a financial dashboard.
“Change is a fact of life,” Rajiv notes, “and one day, if you’re married, one of you will likely face the biggest change of all: the challenge of being a surviving spouse. One of you will have to decipher what it’s like paying for retirement, dealing with inflation, paying taxes – the list of variables is endless!”
Rajiv continues, “So, how do you decide something as important as when to claim Social Security benefits? Years ago, we saw the need for a tool that allows people to monitor their financial health just like gauges on your dashboard. That’s just what a financial dashboard is. You can run all sorts of ‘what-if’ scenarios to see what the effect would be tomorrow of the financial decisions we make today. Then you can make a confident and well-informed decision.”
He adds, “In the example of survivor benefits from this article, we can plug in various numbers so you can see in advance what is going to happen if you claim Social Security early or if you delay. We can predict what a surviving spouse might face if they live ten, fifteen, twenty years on their own. A financial dashboard is absolutely indispensable in times of financial uncertainty like we’re experiencing today.”
Intrigued? Contact us and we’ll gladly answer any questions you may have.
Rajiv Nagaich: Your Retirement Planning Coach and Guide
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What About You?
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