We both started collecting Social Security but didn’t file for spousal benefits – can we still fix it?

Social Security is a complex program that’s loaded with rules. And sometimes, not knowing the rules can come back to bite you.

One misconception about Social Security, for example, is that if you claim benefits before reaching full retirement age (FRA), they’ll shrink on a temporary basis and get restored to their full value once your FRA arrives. In reality, if you sign up for Social Security early, you’ll typically reduce your monthly benefits for life.

There can also be confusion about the way Social Security’s spousal benefits work. And the couple in this Reddit post thinks they made a big mistake in the context of Social Security. But that may not be the case.

Did this couple miss out on benefits?

The poster above is worried that they and their wife missed out on Social Security income by not claiming spousal benefits. Specifically, the wife retired first and started receiving her monthly benefits, and then the poster retired two years later.

The poster is wondering if the wife should’ve claimed a spousal benefit all along. But that’s not necessarily the case.

First of all, since the wife retired first, she couldn’t have claimed spousal benefits from Social Security at the time if her spouse wasn’t receiving those benefits. So that option would’ve been off the table.

Once the poster filed for benefits of their own, at that point, the wife would’ve been eligible for spousal benefits. But typically, what happens is that Social Security pays beneficiaries the larger of their own monthly benefit or a spousal benefit.

If you’re eligible for a spousal benefit from Social Security, it can be worth up to 50% of the benefit your spouse gets at their FRA. But Social Security will only pay you the larger of your own benefit or a spousal benefit — not both.

So let’s say that in this scenario, the wife was getting $1,400 a month from Social Security. And let’s say the poster then filed two years later at their FRA and started getting $3,000 a month.

At that point, Social Security should’ve bumped the wife up to a spousal benefit. That’s because it would’ve given her a $1,500 monthly check instead of $1,400.

However, let’s say the poster’s benefit at FRA was only $2,600. At that point, the wife’s benefit wouldn’t have changed, because her $1,400 check is larger than what her spousal benefit would’ve been (in this case, $1,300).

It’s important to know the rules

It doesn’t seem like this couple missed out on any benefits from Social Security. But if you want to avoid a situation where you risk losing out on benefits, then it pays to do two things.

First, read up on Social Security extensively. It may not be an ideal way to spend a weekend, but you can arm yourself with critical information that’s important to know.

Secondly, talk to a financial advisor ahead of retirement about ways to maximize your Social Security income. An advisor can walk you through the rules and help you come up with a smart filing strategy. They can also explain the rules of spousal benefits so you and your spouse know what to do and how to coordinate your claims.