Social Security benefits can seem simple at first glance, after all, the program has been running for a long time with few major changes, but in reality, the intricacies of the program are hard enough to understand without research, that many people are unaware of their options.

We tend to think of Social Security as retirement benefits, but many children, divorced spouses, and people with disabilities may also qualify for benefits under certain conditions. In fact, in 2024, 2.5 million Americans receive spousal benefits, and over 5.5 million receive survivor benefits. Understanding exactly who qualifies for these benefits, how much they can get, and the best time to start claiming them is key for making the most out of what Social Security offers.

Spousal and survivor Social Security benefits

A lot of Americans know that the current spouse of someone receiving Social Security is entitled to benefits, but they might not know how much that amounts to or how the rules work. For spousal benefits, the eligibility rules are fairly specific. You need to be at least 62 years old, and if you have not worked the full 35 years paying into the Social Security system, or if your spouse’s benefit is higher than yours, you can collect a portion of your spouse’s Social Security. The maximum benefit you will qualify for is half of your spouses benefit at full retirement age.

Survivor benefits are slightly different. To qualify, you have to be at least 60 years old, or between 50 and 59 if you have a disability and you also need to have been married for at least nine months before your spouse passed away. There is another important piece of information, you cannot have remarried before turning 60, or you stop being eligible for those benefits.

But it is not just current spouses that are eligible for survivor benefits, ex-spouses who were married for at least 10 years can qualify, as well as children under 18 or disabled children of any age. If you’re a survivor and you wait until you’re 67 to claim the benefits, you could receive the full amount your deceased spouse was entitled to.

Leslie Thompson, CFA, chief investment officer and co-founder of Spectrum Wealth Management shared with us how workers, women, and retirees can allocate their money strategically to make the most of their Social Security payments “When you look at your finances together as a couple, you might assume that you can collect your social security payment and survivor benefits of a spouse if they pass away. But that isn’t the case. You are only entitled to the higher amount — either social security or survivor’s benefits. So that may influence when each spouse decides to retire since men and women have different longevity and risk factors.”

This means that it is even more important for women to make wise decisions regarding benefits. Thinking through spending and budgeting appropriately is the first step to success. As Thompson explains “The biggest determination for a successful retirement is understanding how much you have coming in each month and your total spending. Understand that you must map out your budget in advance to stay within your means.The best way to be aware of your financial situation is to create a budget based upon spending and track it. I always think it’s a great idea for people to spend as if they were retired for a few years before they actually retire. It helps them figure out what works and how to adjust their behaviors before they’re actually in that position. Even shopping around for cheaper medications can make a huge difference.”

Even reevaluating how you invest in the last years of your life can have a huge impact on your lifestyle, no financial endeavor should be neglected at a time when money is no longer coming in from external sources to the Social Security Administration and savings.

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Thompson also advises “Retirees will likely need to take on risk and increase exposure to maintain balances and counteract inflation. Those approaching retirement and current retirees need to consider how they need to adjust their asset allocations and maintain purchasing power. Women, in particular, need to look out for the impacts of inflation on their portfolio. They typically have longer life expectancies and may need a cash reserve to last longer than their male counterparts.”

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