Social Security is a super-important program for seniors but also complex, and learning the rules can be a time-consuming process. However, those rules are important because they could really help in your retirement planning. With that in mind, here are a few things you need to know about Social Security spousal benefits.
1. Benefits max out at 50% of your spouse's monthly Social Security check
Generally, your ability to claim Social Security hinges on earning a certain amount of money during your career and paying taxes on those wages. But thanks to spousal benefits, you may be in line for some income from Social Security, even if you never earned a dollar in your life.
That said, don't expect your spousal benefit to be the equivalent of what your spouse collects. Your monthly payment maxes out at 50% of what your spouse is eligible to receive from the program.
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2. You can't claim a spousal benefit until your spouse signs up for Social Security if you're married
You may be eager to get your hands on your spousal benefits as soon as possible. But if you're married, you must wait until your spouse files for Social Security before you can sign up for spousal benefits yourself.
The rules are different if you're divorced, though. In that case, you may be able to file before your spouse does.
3. There's no sense in delaying a spousal benefit claim
Seniors who are entitled to Social Security based on their own income histories can collect their full monthly benefits at full retirement age (FRA). This is either 66, 67, or somewhere in between, depending on your year of birth.
If you're claiming Social Security on your own earnings record, you can also boost your monthly benefit by delaying your filing. For each year you do, up until age 70, you'll get an 8% increase.
But there's no such thing as boosting a spousal benefit, so once your FRA arrives, you may as well sign up. However, it's a good idea to wait until FRA to claim spousal benefits from Social Security because if you file early (you can do so starting at age 62), your monthly payments will be reduced.
4. Spousal benefits convert to survivors benefits once your spouse passes away
You may be reliant on your spousal benefits to pay the bills during retirement. And you may be worried that those benefits will be taken away if your spouse passes.
That's not the case, though. If your spouse passes away before you, your Social Security spousal benefits will be converted to survivors benefits. And those are worth 100% of the monthly benefit your spouse was eligible to receive while they were alive.
To be clear, there's no such thing as collecting spousal benefits and survivors benefits at the same time. At any given point, you'll only get one monthly payday from Social Security.
There's lots to know about Social Security spousal benefits -- and about the program, in general. Spend some time reading up on it so you can approach retirement with more knowledge and confidence.
