Social Security Spousal Benefits

If you pay into Social Security while you work, then you benefit from it when you retire. However, some lesser-known features of Social Security can make a big difference for your retirement. Social Security spousal benefits are just one of these features. Intended for married couples with a sole or primary breadwinner, spousal benefits can significantly increase the amount of money you have coming in during retirement. They can even provide a nice supplement to your 401(k) or IRA distributions.

For help with your retirement benefits or planning, talk to a financial advisor.

Who Is Eligible for Social Security Spousal Benefits?

Social Security spousal benefits are available to current spouses and widowed spouses. You must be at least 62 years old to file for a spousal benefit. Also, your spouse has to have filed for their Social Security benefits first.

Ex-spouses are also eligible for spousal benefits, provided you were married to your spouse for more than 10 years and you didn’t remarry before you turned 60. In the case of ex-spouses, you still have to be at least 62 to file. However, your spouse doesn’t have to have filed for his or her benefits before you file for spousal benefits.

Your work history can also impact your eligibility for Social Security spousal benefits. If you have worked and are eligible for your own Social Security benefits, you will receive either your benefit or the spousal benefit, whichever is higher. This is known as the “dual entitlement” rule. However, you cannot combine the two benefits to receive a higher amount. Understanding how your work history interacts with spousal benefits can help you make informed decisions about when to claim.

Divorced and widowed spouses have unique considerations when it comes to Social Security spousal benefits. If you are divorced, you can claim spousal benefits based on your ex-spouse’s record if the marriage lasted at least ten years and you have not remarried. For widowed spouses, you may be eligible for survivor benefits, which can be up to 100% of your deceased spouse’s benefit. These benefits can be claimed as early as age 60, or age 50 if you are disabled, but will be reduced if claimed before full retirement age.

How Much are Spousal Benefits Worth?

A spousal benefit will be worth 50% of your spouse’s benefit amount as calculated at your spouse’s full retirement age (FRA). Your FRA depends on the year you were born. You can find yours by heading to the Social Security website. For everyone born in 1960 or after, your FRA is 67 years of age. So, let’s say your spouse retires at his or her FRA and is eligible for a benefit of $1,600. Then, you would, in turn, be eligible at your FRA for $800.

If you contributed to Social Security, you may wonder if your spousal benefit will be higher than your benefit. Thankfully, you don’t need to worry. Social Security will automatically determine which is higher your benefit or your spousal benefit. Then, you will receive a higher amount.

There are a couple of specific details that can alter the amount of your spousal benefit. One thing to keep in mind is that there is a maximum that one family can receive from Social Security. So, if another member of the family, like a child or another spouse, is eligible for benefits, that could reduce the amount of your spousal benefit.

Another has to do with when you were born. If you were born in 1953 or earlier, you can file for just your spousal benefits and then file to replace that benefit with your benefit at a later date. This could be an attractive option if you want to start receiving a benefit, but you need to wait a few years for your benefit to reach its maximum amount. If you were born after 1953, you can’t file separately like this, so once you file, you’ve filed for everything.

What If You Want to Retire Early?

If you wish to retire early and file for your spousal benefit before you reach your FRA, then the monthly benefit you’ll receive will be lower. Specifically, your spousal benefit will be reduced by approximately 0.7% (25/36 of 1%) for each month before your FRA. If you file for benefits more than 36 months before your FRA, then your benefit will be reduced by approximately 0.4% (5/12 of 1%) for each month after 36 months.

For example, if you’re eligible for a spousal benefit of $750, but you file for benefits 18 months before your FRA, then your benefit would be reduced to $656.25 [750 x (1 – 0.007 x 18)]. If you file for benefits 40 months early, then your benefit would be reduced to $550 [750 x (1 – 0.007 x 36 – 0.004 x 4)].

Furthermore, if your spouse files for his or her benefits early, and you, in turn, also file for your spousal benefit early, your benefit will be reduced even further. These reductions will be permanent. Therefore, you and your spouse must be careful when determining when you will file for benefits. You don’t want to lock in smaller payments unless you know you can afford them.

If you file for benefits once you reach your FRA, you can continue to work and earn income even while you are collecting benefits. However, you can’t do this before you reach your FRA. If you receive benefits early, then you continue to work after that, and you may owe Social Security some of the benefits you received.

What to Do If Your Spouse Passes Away?

As a widow or widower, you are eligible to file for a survivor’s benefit once you turn 60. If you wish to let your benefit keep growing, you can do that. You can choose to file for just your survivor’s benefit when you turn 60, then switch to your benefit at a later date. You can also do the inverse of this. You can file for your benefit first and then switch to your survivor’s benefit.

If your spouse passes away after one or both of you are already receiving benefits, then you’ll have a choice. You can either continue receiving your benefit or continue receiving your spouse’s benefit. If you were receiving a spousal benefit, then you would almost certainly choose to continue receiving your spouse’s benefit, as it would be much larger.

Spousal benefits are like almost any Social Security discussion. You will get the most out of the program if you coordinate with your spouse. You’ll want to make sure the highest-earning spouse is waiting to maximize his or her benefits before filing.

Bottom Line

Understanding Social Security spousal benefits can significantly impact your financial planning for retirement. These benefits are designed to provide financial support to spouses who may have lower lifetime earnings or who have chosen to stay at home to support their family. To qualify, you must be at least 62 years old and your spouse must already be receiving Social Security retirement or disability benefits. The amount you receive can be up to 50% of your spouse’s full retirement benefit, depending on your age and the timing of your claim.

Tips for Saving for Retirement

If you already have some money to spare, you could save even more by working with a financial advisor. A financial advisor can take a comprehensive look at your finances and determine where you can cut expenses and save more. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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