You'll often hear that if you want to collect Social Security benefits in retirement, you'll need to work and pay into the program for many years. And while that is true, there's a way to qualify for Social Security without ever working a day in your life -- collecting spousal benefits.
Spousal benefits are something you may be entitled to if you're married to someone who's eligible for Social Security or are divorced from someone in that same boat. You should also know that spousal benefits max out at 50% of what your current or former spouse collects each month from Social Security.
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With that said, there are a few steps you can take to score as high a spousal benefit as possible. Here are three you should know about.
1. Don't file early
If you're married, you have to wait until your spouse files for Social Security to claim spousal benefits. If you're divorced, you can file for spousal benefits before your ex signs up.
The earliest age you can claim Social Security spousal benefits is 62. However, you're not entitled to your complete spousal benefit until you reach full retirement age (FRA). That age is 66, 67, or somewhere in between, depending on your year of birth. So if you want a higher monthly payday, wait until FRA arrives to file.
2. Have your spouse avoid an early filing
The more money your spouse collects in Social Security, the higher a spousal benefit you stand to receive. Your spouse may be inclined to sign up for Social Security at age 62, or at another age prior to FRA, so they can get their money sooner. However, if they reduce their own benefit, yours may be reduced as well.
One way you may be able to help your spouse avoid an early filing is if you're willing to work part-time to generate some household income. Let's say you never worked and your spouse is insistent on retiring at age 65 and collecting Social Security then. If their FRA is 67, they'll get less Social Security, and so will you. But if you're willing to work part-time for two years, you can potentially bring in enough income so that your spouse can sit tight on Social Security until FRA.
3. Don't delay your own claim
When you're claiming Social Security based on your own earnings record, you get to accrue delayed retirement credits for holding off on taking benefits past FRA. Those credits can boost your Social Security benefits by 8% per year, up until age 70. So if you have an FRA of 67 and you claim Social Security at 69, your monthly payments get to rise 16% -- for life.
However, delayed retirement credits do not apply to spousal benefits. So there's no sense in holding off on Social Security beyond FRA when signing up for spousal benefits. Not only will you not grow your monthly payments, but you'll potentially deny yourself income you otherwise could've had.
It's important to know the rules
The rules surrounding Social Security spousal benefits are a bit complex. But it's important to understand them fully before signing up for benefits based on a current or former spouse's earnings record.
The more you read up on spousal benefits, the better positioned you'll be to snag the highest monthly payday you can. And that could allow you to enjoy your retirement to the fullest.
