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Freedom for Retirement™ is the podcast designed to help you move beyond the fear of the complexity of finances so you can be financially free to achieve personal significance. Tune in with Josh Duncan each week to turn fear into fuel that drives you into Freedom & Significance.
Welcome to the Freedom for Retirement Podcast. If you're a high earning professional, business owner, or someone approaching retirement and wondering whether you are truly on track, you are in the right place. This podcast is all about helping you make smart, confident financial decisions without the fear, confusion, or sales pressure that so often comes with money advice. Each episode is designed to break down complex topics like retirement planning, investing, taxes, and cash flow in plain English so you can understand what really matters and avoid the most common and costly financial mistakes. Everything you hear here is educational, fiduciary focused, and grounded in real world planning experience working with clients just like you.
Josh:I'm your host, Josh Duncan, partner at F5 Financial Planning. Let's get started. Are you and your spouse both receiving Social Security, but one of you has a significantly higher benefit than the other? You might be wondering if there is still a way to increase your household income. Many couples assume that once both benefits are started, the decision is final.
Josh:But in some situations, like the one a client recently brought to me, there may be an opportunity to request additional spousal benefits. I'm Josh Duncan, partnered F5 Financial Planning, where we take a fiduciary approach to maximizing our clients' wealth. In today's video, you will learn how Social Security spousal benefits work, whether you can still make adjustments after both of you have started collecting, and practical steps to determine if this strategy could benefit your situation. We will walk through real world examples, common mistakes, and why getting this right matters for your retirement income plan. Let me start with a story that might sound familiar.
Josh:I recently spoke with a client whose wife had already started receiving her own social security benefits. Then he began receiving his. Half of his full retirement age benefit was actually higher than her entire monthly check. This is not uncommon when one spouse had significantly higher lifetime earnings. Many retirees in this position wonder if they are leaving money on the table.
Josh:The good news is that Social Security includes provisions for spouses precisely to help balance this kind of difference. Understanding spousal benefits can potentially increase your household income every single month without affecting the higher earner's benefit at all. This matters because for many couples, Social Security represents a large and reliable portion of retirement income. Even a few $100 more per month can add up to thousands of dollars over the course of retirement. It can provide extra breathing room for healthcare costs, travel, or simply enjoying the retirement you have worked so hard to build.
Josh:Yet far too many couples miss this opportunity simply because the rules are confusing and not well explained. The core question we hear often is this, if we have both already started benefits, can we still switch or adjust to capture spousal benefits? The answer depends on your specific ages when you claimed and your earning histories. But in many cases, like my clients, action is still possible. Let's break this down in plain English.
Josh:A spousal benefit allows the lower earning spouse to receive up to 50% of the higher earning spouse benefit. Importantly, you do not receive your own full benefit plus the full spousal benefit added together. Instead, Social Security pays you the higher of the two amounts or your own benefit plus any excess spousal amount if the spousal benefit is larger. Here is a simple example. Suppose the higher earning spouse has a full retirement age benefit of $2,000 per month.
Josh:The lower earning spouse has their own benefit of $800 per month. The potential spousal benefit would be $1,000 which is half of the higher earner's amount. In this case, the lower earner would receive their own $800 plus an additional $200 to bring the total up to $1,000. If half of the higher earner's benefit exceeds the lower earner's full benefit, there is room for an increase. This is exactly what happened with my recent client.
Josh:His wife's own benefit was lower, so requesting the spousal adjustment providing a meaningful boost to their monthly household income. One important rule to remember is that the higher earning spouse must already be receiving benefits for the lower earning spouse to claim spousal benefits. That is why timing matters so much. Also, if you claim before your own full retirement age, the spousal benefit may be reduced, similar to how your own benefit would be reduced for early claiming. The key takeaway here is that spousal benefits are designed to support couples, especially when earnings histories differ.
Josh:They do not reduce the higher earner's check-in any way. This is one of the more valuable yet often overlooked features of the Social Security system. Now, let us address the heart of today's question. Can you still switch or add spousal benefits after both of you have already started receiving payments? Well, for people born in 1954 or later, the deemed filing rules generally apply.
Josh:This means when you file for benefits, Social Security considers you too have filed for both your own retirement benefit and any spousal benefit you may be eligible for at the same time. Once both spouses are receiving benefits, the ability to make certain switches later is more limited than it used to be. However, in situations where one spouse has just started benefits and the other is already receiving theirs, the lower earning spouse is still able to request an adjustment to any excess spousal benefit they qualify for. This is not automatic though. You need to contact Social Security to review and potentially update your claim.
Josh:The practical steps are straightforward, but important. Gather your Social Security numbers, marriage certificate, and recent benefit statements. You can go to ssa.gov, call Social Security, or visit a local office. Be prepared to explain that you would like to apply for spousal benefits based on your spouse's record. They will review your record and let you know if an increase is possible.
Josh:It is also wise to consider other factors. Adding spousal benefits could affect how much your Social Security is taxable or interact with Medicare premiums in some cases. These are reasons why running the numbers carefully is so valuable. A common mistake is assuming nothing can be done once benefits have started, so couples never inquire. Another is waiting too long and missing potential back payments in some eligible cases.
Josh:The best approach is to check sooner rather than later. Beyond the basic rules, there are smarter ways couples can think about spousal benefits as part of their overall retirement plan. If you have not yet both filed, there are often coordination opportunities. For example, the higher earner might delay claiming to grow their own benefit while the lower earner starts their own and later switches to spousal. This does not work in every situation, but when it does, it can meaningfully increase lifetime income.
Josh:Even after both have started, understanding survivor benefits is crucial. The surviving spouse can step up to the higher of the two benefits. Planning with this in mind helps protect the surviving spouse from a sudden drop in income. This strategy makes the most sense when there's a meaningful difference in earnings histories and when it fits with your broader tax investment and cash flow picture. It's rarely a standalone decision.
Josh:That is why we always recommend modeling different scenarios rather than relying on general rules of thumb. Remember, these decisions are permanent in many aspects, so it pays to get personalized guidance. A financial planner or social security specialist can help you run the specific numbers for your situation. Okay. Today, we covered several important points.
Josh:First, spousal benefits can provide a valuable boost when one spouse's benefit is significantly higher. Second, understanding how the 50% spousal amount works and the concept of receiving the higher of your own or spousal benefit is essential. Third, even after both have started, there may still be opportunities to request adjustments, especially in recent claiming situations. And finally, coordinating spousal strategies with survivor benefits in your overall plan creates a stronger retirement security. Social Security is one of the most important pieces of your retirement puzzle.
Josh:Taking the time to understand these rules can help you maximize the income you have earned over a lifetime of work. If you found this episode helpful, please consider subscribing to the podcast and leaving a review. It helps more people find the show and continue learning how to make smarter financial decisions. I'm Josh Duncan, partnered F5 Financial Planning. If you would like to learn more about how we help our clients achieve financial freedom for personal significance, please visit our website at www.f5fp.com.
Josh:And I'll see you in the next episode.