One of the biggest misconceptions about Social Security is that everyone is entitled to benefits once they reach a certain age. But Social Security is something you have to earn. And commonly, the way to earn it is to accumulate enough work credits in your lifetime.
The value of a work credit for Social Security purposes tends to change from one year to the next. Right now, for example, it takes $1,640 of earnings to earn a single work credit. In 2024, it will take $1,730 in earnings to earn a single work credit.
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You're allowed to earn up to four work credits in a calendar year. And you need 40 work credits in total to be eligible for Social Security during retirement. But in some cases, it's possible to collect Social Security even if you never worked a day in your life.
When spousal benefits come to the rescue
Even if you don't have enough work credits to qualify for Social Security on your own, if you're married to someone who's eligible for benefits, you're in luck. Spouses of Social Security recipients are allowed to sign up for spousal benefits. And while you won't receive as much monthly Social Security as your spouse with an earnings history, you'll get something.
In fact, you may be eligible for spousal benefits from Social Security even if you're no longer married. If a previous marriage of yours lasted 10 years or longer, then you may be able to claim spousal benefits on your ex-spouse's earnings record.
Spousal benefits from Social Security are equal to 50% of what your spouse is entitled to, provided that you wait until you reach full retirement age to sign up. So if you have a spouse who's collecting $2,000 a month from Social Security, you'd be eligible for up to $1,000 a month in spousal benefits.
You should also know that if you're married, you have to wait until your spouse files for Social Security to claim your spousal benefits. But you don't necessarily have to wait for an ex-spouse to sign up to claim spousal benefits on their record.
Know the rules
Spousal benefits from Social Security can be a lifeline for people who didn't work and need more income once they enter retirement. But if you expect to collect spousal benefits, then it's important to understand the rules involved.
One nuance worth knowing about is that you can't grow a spousal benefit by delaying your Social Security claim. This is something you can do when you're claiming Social Security on your own earnings record. In that case, delaying your filing past full retirement age will boost your monthly benefit for life. But the most you can get out of a spousal benefit is 50% of what your spouse receives.
Many people end up not working, or working on a very part-time basis, for various reasons. If that's your situation, don't assume that Social Security is off the table. You may very well be entitled to benefits in retirement thanks to the hard work of your current or former spouse.
