When most people think of Social Security, they often imagine it as a personal retirement savings program, where individuals invest toward their own retirement, with employers making contributions on their behalf. While this perception is largely accurate, there’s an important twist: Social Security allows spouses to receive benefits based on the work history and benefits of their partner. But how do these spousal Social Security benefits work? Here are four key points that every retired couple should be aware of.
Common Questions About Spouse Social Security Benefits in the U.S.
1. When Can a Spouse Start Receiving Social Security Benefits?
It’s crucial to note that a spouse cannot begin receiving Social Security benefits before their partner does. However, you may still be able to collect spousal benefits before your spouse reaches full retirement age. This is possible if your spouse qualifies for Social Security disability or retirement payments.
Your age is also a factor. You must be at least 62 to claim spousal benefits, which is the earliest age to begin receiving retirement payments. However, there’s an exception: you can collect spousal benefits at any age if you’re caring for a child under 16 or for a disabled child of your spouse who qualifies for Social Security.
2. How Much Will the Spousal Social Security Benefit Be?
The amount of Social Security benefits you can receive as a spouse depends on how much your partner is eligible for at their full retirement age. If you wait until your own full retirement age to claim spousal benefits, you can receive up to half of your spouse’s benefit amount.
However, here’s the important catch: the Social Security Administration (SSA) will compare the amount of benefits you’re eligible to receive based on your own work record with the spousal benefits you’re entitled to. You will then receive whichever amount is higher. This means that if your own work history entitles you to a higher benefit than the spousal benefit, you’ll receive that higher amount.
It’s also important to understand that you must apply for both your spousal benefit and your retirement benefit at the same time, a rule called “deemed filing.” This policy, implemented in 2016, prevents individuals from filing for multiple benefits in an attempt to increase their total benefits.
3. Can You Collect Spousal Benefits Before Reaching Retirement Age?
Yes, you can collect spousal benefits before reaching full retirement age, but it comes with a penalty. If you start receiving benefits before reaching your normal retirement age, your monthly benefit will be reduced. Specifically, for each month you claim benefits before your retirement age (up to 36 months), your benefits will be reduced by 25/36 of 1%. For claiming after 36 months, the reduction increases to five-twelfths of one percent per month.
4. Should Couples Wait to Claim Social Security Benefits After Full Retirement Age?
Once you reach your full retirement age, it might make sense to delay claiming Social Security benefits to increase the amount you’ll receive. For individuals born in 1943 or later, waiting until age 70 to claim Social Security can increase benefits by 8% annually. For many, this results in a 24% increase in their monthly payments—an impressive return on investment.
However, when it comes to spousal benefits, waiting after full retirement age won’t help you. The maximum spousal benefit is still half of what your spouse would receive at their full retirement age, so there’s no additional gain from delaying your claim.
Does a Divorced Spouse Qualify for Social Security Benefits?
You may still be eligible to claim spousal Social Security benefits even if you’re divorced, provided you meet certain conditions. To qualify, you must have been married for at least 10 years. Additionally, in some cases, “valid non-marital legal relationships” might also qualify for spousal benefits, depending on specific regulations outlined by the Social Security Administration.