There's a lot more to Social Security than retirement benefits. In addition to benefits paid to retired workers, there are several other programs designed to provide monthly income to workers with disabilities, surviving family members of deceased workers, and even children of retired workers.
However, one of the most important Social Security programs to know about is spousal benefits. If you aren't too familiar with how Social Security spousal benefits work, here are some of the most important things all married couples should know about them.
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1. What is a spousal benefit?
Spousal benefits are designed to provide income for married (and some divorced) couples where one spouse earned far more than the other throughout their lifetime, or when one spouse didn't work at all. For example, if you worked while your spouse was primarily a stay-at-home parent, they likely wouldn't qualify for a Social Security retirement benefit based on their own work record. But thanks to spousal benefits, they could get retirement income based on your work record.
2. How much can a spousal benefit be?
A spousal benefit can be as much as half of the higher-earning spouse's full retirement benefit. In other words, if one spouse would be eligible to collect $2,500 per month in retirement benefits if they wait until full retirement age, their spouse could get a benefit of as much as $1,250 per month.
I say "as much as" because this assumes that they wait until full retirement age as well to start collecting their benefit. We'll discuss that later.
As of July 2023, 1.94 million Americans were collecting Social Security spousal benefits, with an average monthly benefit amount of about $890.
3. Are you eligible for a spousal benefit?
In order to be eligible for a spousal benefit, the following criteria need to be met:
- Both the primary earner and their spouse must be at least 62. Alternatively, a spousal benefit can be paid before age 62 if the spouse is caring for a qualifying child under 16 or one who is disabled.
- The primary earner must have filed for their own Social Security benefit before a spousal benefit can be paid.
- The spousal benefit amount must be more than the spouse would be entitled to under their own record. Whichever benefit is higher will be paid.
4. How are early spousal benefits reduced?
Just like benefits for retired workers, spousal benefits are permanently reduced for claiming before the recipient's full retirement age. For people born in 1960 or later, full retirement age (FRA) is 67 years old, and for people born prior, it's between age 66 and 67, depending on the year you were born.
Spousal benefits are reduced by as much as 35% if they are claimed at age 62, the earliest allowable age. And if they're claimed after 62 but before full retirement age, the following rules apply:
- The benefit is reduced by about 0.69% for each month before full retirement age, up to 36 months.
- Beyond 36 months early, it is reduced by about 0.42% per month.
For example, if the primary earner's full retirement benefit is $2,200 per month, this means that their spouse's benefit can be as much as $1,100 per month at FRA. But if their spouse decides to start collecting it at age 62, assuming an FRA of 67, it would be reduced to $715.
5. Waiting beyond full retirement age won't help
As discussed, spousal benefits can be reduced if the recipient starts collecting them before reaching FRA. But unlike benefits for retired workers, there is no increase for waiting beyond FRA to take a spousal benefit.
There are two key takeaways here:
- If the higher-earning spouse has claimed their Social Security benefit, there is no reason to wait beyond FRA to claim your spousal benefit.
- In married couples where the primary earner is younger than the person expecting a spousal benefit, it's generally not a good idea to wait beyond the latter's full retirement age to claim benefits.
Spousal benefits can provide valuable financial security
For many couples, a Social Security spousal benefit can increase their inflation-protected retirement income by as much as 50% compared to what it would be with just the primary earner's benefit. But there are several moving parts when it comes to spousal benefits, so by knowing how the system works, you'll be in a good position to make smart decisions for you and your family.
