The “Spousal Strategy” Loophole: 4 Ways to Maximize Benefits Before They Expire

A Social Security spousal rule that enabled recipients to switch between their own benefits and their spouse’s benefits to receive the maximum amount officially ended for the last eligible retirees in 2024 – specifically, those who turned 70 on January 1, 2024. For decades, savvy couples used strategies like restricted applications and file and suspend to boost their retirement income, sometimes adding tens of thousands of dollars over their lifetimes. Unless you were born before January 1, 1954, you haven’t been able to take advantage of these methods since the law changed back in 2016.

Let’s be real, most people didn’t even know these loopholes existed until they were about to disappear. Here’s the thing: while the old tricks are gone for most of us, there are still legitimate ways to squeeze more out of Social Security if you’re married. It’s not about gaming the system anymore. It’s about understanding the rules that remain and timing your claims strategically. Think of it like a puzzle where the pieces keep shifting, especially if you fall into certain age groups or life situations.

Coordinate Claims to Protect the Surviving Spouse

This one’s probably the most overlooked strategy, yet it could mean the difference between financial comfort and hardship for whoever lives longer. Delayed retirement credits boost benefits by roughly two thirds of one percent per month, or eight percent a year, meaning depending on birth year, a spouse could receive as much as $3,268 monthly by filing at 70. When one spouse dies, the survivor gets to keep the higher of the two benefit amounts.

Here’s where it gets interesting. One effective approach is the 62/70 split strategy, where the lower earning spouse claims Social Security at age 62 to receive immediate income while the higher earning spouse waits until age 70, earning delayed retirement credits of eight percent each year past full retirement age. This ensures the surviving spouse inherits the maximum possible benefit. If the higher earner’s full retirement age benefit is $4,000, delaying until age 70 increases it to $5,280 per month in 2025 dollars.

I think this strategy makes sense for couples with decent health and longevity in their family history. It maximizes lifetime benefits particularly for survivors because the widow or widower inherits the increased amount, and studies indicate this can generate roughly ten to twenty percent more over a combined lifespan of 85 years or more.

Leverage Spousal Benefits When Earnings Are Unequal

Spousal benefits are crucial for couples with income gaps, allowing the lower earner to receive up to fifty percent of the higher earner’s full retirement age benefit, often exceeding their own. This isn’t a loophole – it’s how the system was designed to support households where one partner earned significantly less or took time off for caregiving.

For example, if Spouse A has a $3,000 monthly full retirement age benefit, Spouse B could claim $1,500 as a spousal benefit even if their own benefit is only $800, raising household income without reducing Spouse A’s payout, and in 2025 with the maximum full retirement age benefit at $3,900 for high earners, this could mean up to $1,950 for the spouse. The catch? Spousal benefits don’t earn delayed retirement credits, so timing is crucial because claiming early could cut benefits by as much as thirty five percent.

For couples where one partner had a significantly more lucrative working life, maximizing Social Security income might mean combining retirement and spousal benefits and coordinating claims to optimize payments, which means weighing numerous variables including both spouses’ age, health, and timetable to retire.

Understand Deemed Filing and When It Doesn’t Apply

Deemed filing means that when you file for either your retirement or your spouse’s benefit, you are required or deemed to file for the other benefit as well, and the Bipartisan Budget Act extends deemed filing rules to apply at full retirement age and beyond. Most people filing today are automatically deemed to be claiming both their own benefit and any spousal benefit they qualify for.

Still, there are exceptions. The deemed filing rule doesn’t apply if you receive spousal benefits because you’re caring for a child who is under sixteen or has a disability, or if you get spousal benefits and are also entitled to Social Security disability payments – in these circumstances you may be able to file a restricted application. Also important: Deemed filing applies to retirement benefits but not survivor’s benefits, meaning if you’re a spouse you may start your survivor benefit independently of your retirement benefit.

Honestly, the deemed filing rule trips up a lot of people. If your spouse isn’t yet collecting Social Security, you can file for your own retirement benefit and switch to a spousal benefit when your mate starts collecting, if the spousal benefit is larger than your retirement payment.

Consider the Split Strategy for Immediate Income and Long Term Growth

Not everyone can afford to wait until 70 to start collecting. Married couples may decide the best way to maximize Social Security benefits is to adopt a split or hybrid approach, which can provide some immediate income while still allowing the couple to benefit from higher delayed retirement credits. This balances short term cash needs with long term financial security.

Many couples use a split strategy which means they begin claiming at different ages, and it might be worthwhile for the higher earner to wait longer to collect. Let’s say you need money now but want to protect your future. The lower earner files early – maybe at 62 or 65 – bringing in some Social Security income to cover bills or avoid draining retirement accounts. Meanwhile, the higher earner delays until 70.

This strategy strikes a balance between short term cash flow and long term growth – for instance, the lower earner might choose to take a reduced $900 from a $1,500 full retirement age amount early, providing $10,800 annually while the larger benefit continues to grow. It’s hard to say for sure, but this approach often works well for couples where one spouse has health concerns or needs access to funds sooner.

The landscape of Social Security claiming strategies has changed dramatically since 2015, and the final grandfathered participants aged out in 2024. What remains are coordinated claiming approaches that require couples to think together about timing, longevity, and financial needs. Remember, the decision of when to claim isn’t just about maximizing the numbers – it’s about your health, your family history, and what gives you peace of mind in retirement. What would your strategy be?