There's a lot more to Social Security than benefits for retired workers. Several Social Security programs are designed to provide income to the families and survivors of workers, and one program is known as Social Security spousal benefits. In this article, we'll look at five things married couples should know about spousal benefits as they approach retirement age, including how much additional retirement income you might be able to get.
What are Social Security spousal benefits?
Spousal benefits are designed to provide additional retirement income to married couples in situations where one spouse never worked, or earned much less throughout their career. Spouses can qualify for a Social Security spousal benefit if they are at least 62 years old and both spouses have filed for Social Security.
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How much could your spousal benefit be?
A spousal benefit can be as much as half of the primary earner's primary insurance amount (PIA), which essentially means the benefit they'd be entitled to if they wait until full retirement age to claim their benefit. In other words, if your benefit at full retirement age would be $2,000, your spouse could get as much as $1,000 based on your work record.
Having said that, there are a few things to point out:
- First, a spousal benefit will only be paid if it's greater than the benefit you'd be entitled to on your own work record.
- A spousal benefit is based on the higher earner's benefit at full retirement age. They don't necessarily need to wait until full retirement age to start collecting their benefit.
- Spousal benefits can be reduced if the spouse collecting them hasn't reached full retirement age yet (more on that in the next section).
- In order for a spousal benefit to be paid, both spouses must have filed for Social Security. In other words, you can't collect a spousal benefit on someone else's work record if they haven't started collecting Social Security yet.
When can you claim spousal benefits?
The short answer is that you can claim a Social Security spousal benefit as long as these three things are true:
- You're 62 years old or older.
- The spousal benefit you're entitled to is more than you would receive based on your own work record.
- Your spouse has filed for their own Social Security retirement benefits.
Note that your spousal benefit will be permanently reduced if you claim it before reaching full retirement age. While you can get 50% of your spouse's retirement benefit at full retirement age, the benefit can be reduced to as little as 32.5% of theirs if you claim early.
What if you're divorced?
Divorced spouses can receive spousal benefits on their ex-spouse's work record in some cases. To qualify, the person receiving the spousal benefit must be unmarried, age 62 or older, and the marriage must have lasted 10 years or longer. And if you've been divorced for at least two years, it doesn't matter if the primary earner has claimed their own benefit yet, as long as they are qualified.
What if the higher-earning spouse passes away?
If you're receiving a benefit based on your spouse's work record and they pass away, your benefit will then become a Social Security survivors benefit instead. This is a different program run by the Social Security Administration that is designed to provide income to families whose loved ones die prematurely.
In cases where the higher-earning spouse dies first, the surviving spouse can essentially take over their retirement benefit. If the surviving spouse is already at their full retirement age, they would get 100% of the basic benefit amount that was paid to the deceased worker, and it can be reduced if the survivor hasn't yet reached full retirement age.
There's a lot to learn about Social Security spousal benefits
To be sure, this isn't meant to be an exhaustive list of things to know about spousal benefits. For example, there are special rules that may provide higher benefits for spouses who haven't reached retirement age but are still caring for minor children. So, if you have young children, or a family situation that is somewhat unusual for a couple at retirement age, it may be a smart idea to read more about the spousal benefits program.
