Few social programs in the U.S. have been as important as Social Security. The guaranteed income in retirement has assisted millions of Americans and kept a roof over their heads or food on the table.
Typically, Social Security determines how much you receive in retirement benefits by using a formula that factors in your 35 highest years of earnings. The more you earn during those years (up to the wage base limit), the more you can expect to receive in monthly benefits.
The reality, though, is that not everyone was in the workforce full-time or earning consistent income. But that doesn't mean they don't deserve Social Security in retirement. That's why Social Security offers spousal benefits. For couples considering this option, here are a few things you should know.
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Here's who's eligible to receive Social Security spousal benefits
In order to qualify for Social Security spousal benefits, you must be married for at least one year, and your partner (the primary claimer) must already be collecting their benefits. From there, one of the following three must apply:
- You're at least 62 years old
- You're caring for your spouse's child who is under 16
- You're caring for a disabled minor who receives benefits on your spouse's record
If you meet the qualifications and are applying for spousal benefits, you can receive up to 50% of your spouse's primary insurance amount, or PIA (more on this below).
For example, let's assume the primary claimer qualifies for a PIA of $2,000 per month. That would make whoever is claiming spousal benefits eligible to receive up to $1,000 in monthly benefits as well. The exact amount received in spousal benefits will depend on the age at which you claim them, which brings us to our next point.
Monthly benefit adjustments differ from standard benefits
Social Security uses a worker's full retirement age (FRA) to determine when they're eligible to receive their PIA. That PIA serves as a baseline, and their monthly benefit changes based on when they claim relative to their full retirement age.
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This also matters in the context of spousal benefits because your monthly check is reduced by 25/36 of 1% for every month you claim prior to your FRA, up to 36 months. After 36 months, the math changes slightly with benefits reduced 5/12 of 1% per month. This works out to a 35% reduction to your spousal benefit if you claim at age 62 with a FRA of 67.
However, while workers' benefits also increase if they wait until after their FRA to claim, this perk doesn't apply to spousal benefits. The payout at your full retirement age is the most you can expect to receive.
Spousal benefits will change when a spouse passes away
Although the overall situation may be emotionally challenging, understanding the relationship between spousal benefits and survivors benefits is important for navigating Social Security after a loved one passes away.
If the primary claimer passes away while you're receiving spousal benefits, Social Security converts the spousal benefits to survivor benefits. This conversion is noteworthy because those receiving survivor benefits are eligible to receive up to 100% of their deceased spouse's benefits.
Going back to the earlier example, if the primary claimer was receiving $2,000 monthly and the person claiming spousal benefits was receiving $1,000, the latter could see their benefit increase to $2,000.
You become eligible for survivor benefits at age 60, or at 50 if you're disabled. However, the benefit reduction calculations still apply to those claiming before their full retirement age.
You can't simultaneously receive spousal and survivor benefits, only the higher amount. Since spousal benefits max out at 50% of the partner's PIA, survivor benefits are generally the higher-paying option.
