Surviving spouses will either receive their own Social Security benefit or the survivor's benefit, whichever is higher. But they also may get pushed to a higher tax bracket, which. in turn, could mean higher taxes on Social Security benefits.
One of the major aims of asset allocation is to craft a portfolio with ingredients that don’t all behave in exactly the same way to protect against all assets heading south at the same time. But, of course, that downside protection can be a double-edged sword.