While the 2016 Social Security law curbed certain claiming strategies, there are still valuable and often-overlooked ways to optimize your benefits. Here, we’ll highlight a couple cases we recently worked on to maximize clients’ Social Security income.

Social Security Strategy for a Divorced Individual

Our client is divorced and was nearing his Social Security Full Retirement Age (FRA) of 66. Rather than take his own benefit, we recommended that he begin spousal benefits on the record of his ex-spouse. He will receive half of his ex-spouse’s FRA benefit while his own delayed benefit grows 8% per year.

When he turns 70, which is the latest you can delay benefits and receive an increase, he will switch to his own benefits, which will be 32% higher than had he taken them at 66. While he waits from 66 to 70, he will receive roughly $60,000 in spousal benefits.

For this strategy to work, the following criteria must apply:

• You were born before January 2, 1954.

• Your marriage lasted 10+ years.

• You are unmarried.

• Your ex-spouse is entitled to Social Security benefits.

• Your ex-spouse is 62.

• Either you have been divorced for 2+ years or your ex-spouse is already claiming benefits.

Social Security Strategy for a Widow or Widower

Our client is age 62 widowed. Her spouse’s Social Security benefit exceeds her own. Social Security rules allow her to apply for either retirement or survivor benefits first and switch to the other higher benefit at a later date.

We recommended that she file for her own retirement benefit now. She can delay the higher survivor benefit until FRA and collect her own benefit in the meantime.

Although her own benefit will be reduced because she’s below FRA, the reduction won’t carry over to her survivor benefit. Until she switches to survivor benefits at FRA, she will collect $12,000/year in benefits based on her own work record.

For this strategy to work, the following criteria must apply:

• You are a widow or widower.

• You are eligible for benefits on your own work record.

• Your spouse was eligible for benefits on his/her record.

• You are 60+ to claim survivor benefits.

• You are 62+ to claim your own benefits.