You'll often hear that if you don't work and pay into Social Security for a certain number of years, you won't be entitled to benefits once you retire. But that's not necessarily true.
Even if you don't qualify for Social Security based on your own earnings record, you may be eligible for spousal benefits because your current or former spouse is entitled to income from Social Security. But it's important to know how spousal benefits work. And if you're planning to claim them, you'll want to steer clear of these pitfalls.
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1. Counting on more than one retirement benefit
If you worked at some point, then you may be entitled to a monthly Social Security benefit of your own based on your wage history. The amount of income you're eligible for in the form of spousal benefits, however, may be higher. But don't make the mistake of thinking you can collect both your own Social Security benefit based on your income history and a spousal benefit.
Social Security will pay you one retirement benefit, and thankfully, you'll get the higher of the two. But if you're counting on both, well, you'd better start recalculating your anticipated retirement income.
2. Delaying your spousal benefit claim past full retirement age
If you're claiming Social Security based on your own earnings record, then it could make financial sense to delay your filing past full retirement age. For each year you do, up until age 70, your monthly benefit gets to grow 8%. And whatever increase you snag is yours to enjoy for life.
But the rules are different for spousal benefits. At full retirement age, you're eligible for your complete spousal benefit, which is the equivalent of 50% of what your spouse collects. But you can't grow a spousal benefit, so delaying your claim isn't going to boost your monthly income. If anything, it's only going to keep you from accessing money you could've had sooner.
3. Assuming you're eligible in the first place
Many current and former spouses are entitled to spousal benefits from Social Security. But qualifying isn't a given.
If you're currently married, you should know that you need to be married for at least a year to be eligible for spousal benefits. If you're divorced, your marriage needs to have lasted for at least 10 years to be eligible in that regard. Make sure to familiarize yourself with the rules so you don't end up counting on income you can't actually claim.
Social Security is a complex program that's loaded with rules, and the rules of spousal benefits can be somewhat confusing in their own right. So if you think you'll be in line for spousal benefits, read up on what that entails so you get all the right information.
And also, talk to your spouse about filing for Social Security so you're on the same page. If you're married, for example, you won't be able to file for spousal benefits until your spouse claims Social Security themself, so that's the sort of thing it pays to discuss.
