Social Security Claiming: The Case of the High-Earning Couple

This results in a projected lifetime benefit for the couple of $890,799 — an amount that is far from the maximum possible but which does see the couple begin to collect their monthly payments earlier. As the authors note, this approach could be necessary if no other ready sources of retirement income are available.

A big jump in projected benefits comes from assuming that Bob makes the same claiming decision to draw a reduced worker benefit ($1,788) at age 62. Lisa, however, waits to claim until she reaches age 67 in January 2030, when her full worker benefit of $1,777 is available. Later, she switches to the slightly higher survivor benefit, resulting in a projected lifetime benefit of $927,450.

An approximately $25,000 boost in benefits comes from assuming that Bob files at age 62, while Lisa files in January 2033 at age 70 for her maximum worker benefit of $2,033. This approach delivers a projected lifetime benefit for the couple of $952,127.

The projected benefit climbs about $1 million when the couple are both assumed to wait until age 67 to claim their respective full worker benefits, with Bob receiving $2,540 per month starting in August 2029 and Lisa getting monthly checks of $1,777 in January 2030.

If Lisa eventually switches to the larger survivor benefit, the couple can expect to collect a little more than $1 million in lifetime benefits.

Other small tweaks to these claiming strategies see the benefit amount rise marginally, but the optimal strategy is a clear winner, delivering some $1.1 million in projected lifetime benefits.

This strategy has Bob wait until August 2032 to file at age 70 for his maximum worker benefit of $3,149. Lisa is assumed to do the same, waiting until age 70 in January 2033 for her maximum worker benefit of $2,203 before eventually switching to the survivor benefit ($3,149).

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