When it comes to planning for retirement, Social Security is a key component. It provides a steady income stream that many people rely on for financial security in their later years. However, Social Security is not just for individuals; it can also benefit spouses, allowing them to claim a portion of their husband’s or wife’s benefits.
Understanding how spousal Social Security benefits work is crucial for all retired couples. Here’s a rundown of four key things every retired couple should know about spousal Social Security benefits.
1. When Can a Spouse Claim Spousal Social Security Benefits?
To claim spousal Social Security benefits, you must wait until your spouse is receiving their benefits. However, they do not have to be at their full retirement age for you to start claiming spousal benefits. You, the spouse, must be at least 62 years old, which is the earliest age allowed for claiming retirement benefits. There’s an exception to this rule: if you are caring for a child under the age of 16 or a disabled child who is entitled to benefits on your spouse’s record, you can claim spousal benefits at any age.
2. How Much Will the Spouse’s Social Security Benefit Be?
The amount of spousal Social Security benefits you receive is based on your spouse’s full retirement age benefits. If you choose to claim spousal benefits at your full retirement age, you can receive up to 50% of what your spouse is entitled to at their full retirement age. It’s important to compare this amount with what you would receive based on your own work record.
You’ll always get the higher of the two amounts. Keep in mind, if you claim spousal benefits before reaching your full retirement age, your benefits will be reduced. For each month you claim before that age, your benefits are reduced by 25/36 of 1% for the first 36 months and then by an additional 5/12 of 1% per month thereafter.
3. Does it Pay Off for Spouses to Delay Claiming Spousal Benefits After Their Full Retirement Age?
Yes, it does. By delaying your spouse’s claim past the full retirement age, he or she can increase their retirement benefits. For those born in 1943 or later, delaying benefits can result in an 8% increase in benefits for every year they wait up to age 70. This can translate into a significant increase—24% if you wait until age 70. However, for spousal benefits specifically, there’s a cap. The most you can receive is 50% of your spouse’s benefit at their full retirement age.
4. Can a Divorced Spouse Claim Spousal Benefits?
Yes, divorced spouses are also eligible for spousal Social Security benefits based on their former spouse’s work record, provided they were married for at least 10 years. SSA’s rules also state that some valid non-marital legal relationships may be eligible for spousal benefits. If you meet these requirements, you can claim spousal benefits even if you’ve remarried.
Final Thoughts
Understanding spousal Social Security benefits is crucial for retired couples. It’s a valuable strategy to boost your retirement income, ensuring financial security during your golden years. If you haven’t considered spousal benefits, now is the time to start thinking about it and plan accordingly.
Don’t Miss Out: The $22,924 Social Security bonus most retirees completely overlook. This little-known trick could help you boost your retirement income significantly. Discover how to maximize your Social Security benefits today and secure your future.
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates.
Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.