When it comes to retirement income, married couples often see Social Security as a joint benefit that can provide a steady income for both spouses throughout retirement. And in the past, some couples took advantage of a spousal loophole to get more bang for their buck.

That loophole was closed nearly a decade ago, yet many people still hear about it and wonder if there’s a way to legally maximize their Social Security benefits as a couple. Here’s what you need to know about how the old Social Security loophole worked and what strategies make sense today.

What Are the Rules for Collecting Your Spouse’s Social Security?

Spousal benefits allow one spouse to receive up to 50% of the other spouse’s full retirement age (FRA) benefit—even if they never worked or earned much on their own. Here’s the criteria you must meet to qualify:

  • Be at least 62 years old.
  • Have been married for at least a year, or were married for 10 years before your divorce was finalized.
  • Have a spouse who is receiving Social Security or disability benefits.

If you apply for benefits before your FRA, your spousal benefit will be permanently reduced. And under the deemed filing rule, if you’re eligible for both your own benefit and a spousal benefit, the Social Security Administration (SSA) automatically pays you the higher of the two. You can’t choose to take one and delay the other.

 

How the Spousal Benefits Loophole Worked

Before 2016, married couples could take advantage of the spousal loophole, a strategy that allowed both spouses to collect benefits while maximizing the higher earner’s future payout. The higher-earning spouse filed for Social Security once they reached full retirement age and immediately suspended their benefit, allowing it to continue growing through delayed retirement credits.

Once that spouse filed, the lower-earning spouse could begin collecting a spousal benefit, up to 50% of the higher earner’s FRA benefit. Years later, the higher-earning spouse would unsuspend their benefit, which would now be worth more thanks to the delay. Meanwhile, the lower-earning spouse continued collecting their spousal amount.

The Bipartisan Budget Act of 2015 effectively closed this loophole for most retirees. As of April 2016, when a worker suspends their benefit, all benefits payable on their record are suspended too, including any spousal benefits. The only people who can still use the old loophole are those born before January 2, 1954, who met specific filing deadlines before the rule change took effect.

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Now That the Old Loophole Doesn’t Work, What Are My Options?

While the file-and-suspend strategy is gone, there are still ways for married couples to optimize their claiming strategy under the current rules:

  • Delay benefits for the higher earner: If possible, the spouse with the higher lifetime earnings record should consider delaying their benefit up to age 70. This increases their own retirement income and also the survivor benefit the other spouse would receive if the higher earner dies first.
  • Coordinate timing carefully: The lower-earning spouse may choose to start their own benefit as early as 62, while the higher earner waits until FRA or later. This can help bridge the gap between retirement and age 70 without locking in permanently reduced benefits for both.
  • Understand divorced and survivor rules: Divorced spouses may still qualify for benefits on an ex-spouse’s record if the marriage lasted at least 10 years and the individual hasn’t remarried. Survivor benefits follow a different set of rules, and they are unaffected by the closure of the spousal loophole.

Maximum Social Security Benefit for Married Couples

Each spouse is entitled to a benefit based on their own work record. The maximum combined benefit for a married couple depends on both earning histories, when each spouse claims, and whether one qualifies for a spousal benefit.

A spouse who hasn’t earned enough to qualify for their own benefit can receive up to 50% of their partner’s FRA benefit. For example, if your spouse’s full retirement benefit is $3,000 per month, your maximum spousal benefit would be $1,500, assuming you wait until your FRA to claim it. If both partners have high lifetime earnings, each spouse will typically take their own benefit, since it exceeds the spousal amount.

When Can a Spouse Claim Spousal Benefits?

A spouse can claim spousal benefits as early as age 62, but doing so will permanently reduce their monthly payment. To receive the full 50% benefit, you must wait until your full retirement age, which is between 66 and 67, depending on your birth year.

And your spouse must have already filed for their own benefit before you can receive a spousal benefit. If your spouse is delaying their benefit to earn delayed retirement credits, you’ll have to wait, too.

Can Both Married People Claim Social Security?

Yes, each spouse can claim Social Security based on their own earnings record, and the SSA will automatically pay whichever benefit is higher. For instance, if your own benefit at FRA is $1,800 but your spouse’s FRA benefit is $3,000, your spousal benefit would be $1,500 (half of theirs). In that case, you’d take your own benefit since it’s higher. Conversely, if your own benefit were only $900, you’d receive the $1,500 spousal amount instead.

More information here:

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Married Couple Social Security Strategy

Even without the old loophole, married couples can still make the most of their Social Security benefits with careful planning:

  • Compare both spouses’ benefits: Identify whose earnings record is higher and by how much.
  • Estimate lifetime benefits: Use the SSA’s online calculators to model different claiming ages and see the long-term effect on total income.
  • Coordinate timing: Often, it makes sense for the higher-earning spouse to delay benefits while the lower-earning spouse files earlier.
  • Factor in longevity and health: If one spouse is likely to live much longer, delaying their benefit can significantly increase survivor income.
  • Consider taxes and earnings: If you’re still working before full retirement age, your benefits may be temporarily reduced.

The Bottom Line

The Social Security spousal loophole may be gone, but there are still ways for married couples to maximize their benefits. By understanding how spousal benefits work and carefully coordinating when each spouse claims, you can secure a higher lifetime payout.

To determine which strategy makes the most sense for your situation, run your numbers through the SSA’s Retirement Estimator or consult a financial advisor. The difference could amount to thousands of dollars in additional lifetime income and a more comfortable retirement for both spouses.

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