A whopping 68 million Americans will receive a Social Security check in 2024. For many, benefits are the difference between making ends meet and facing financial insecurity.
In fact, a 2023 Gallup poll found that nearly 90% of current retirees say they depend on Social Security to some extent in retirement, with nearly 60% of that group saying it's a major source of income.
While retirement benefits are the most common form of Social Security, if you're married to someone entitled to benefits, you could be entitled to spousal Social Security. Here are three things to know about this special type of benefit, including who is eligible and how much you could receive.
Image source: Getty Images.
1. Your work history could affect your eligibility
The primary requirement to qualify for spousal benefits is being married to someone entitled to either retirement or disability benefits. Even if you've never worked (or haven't worked long enough to qualify for retirement benefits), you can still receive spousal Social Security.
However, if you are entitled to retirement benefits based on your work history, it could affect the amount you receive or whether you qualify for spousal Social Security at all.
The maximum you can collect in spousal benefits is 50% of your spouse's full benefit amount -- or the amount they'll receive at their full retirement age (FRA). If your retirement benefit at your FRA is higher than that, you won't qualify for spousal benefits. If it's lower, you'll only receive the higher of the two amounts.
Image source: Getty Images.
Also, keep in mind that to receive the full spousal benefit you qualify for, you'll need to wait until your own FRA to file. You'll receive a permanently reduced amount by claiming early (as early as age 62).
2. Continuing to work in retirement could reduce your benefits
If you're at least 62 years old but haven't yet reached your FRA, working after claiming benefits could reduce the amount you collect each month.
Prior to your FRA, your income will be subject to the retirement earnings test. This is essentially an income limit that will determine how much of your benefits are withheld due to income from a job. This limit changes from year to year, and there are two different caps depending on whether you will or will not reach your FRA in 2024.
| Annual Income Limit | Benefit Reduction | |
|---|---|---|
| If you will reach your FRA in 2024 | $59,520 | $1 for every $3 over the limit |
| If you won't reach your FRA in 2024 | $22,320 | $1 for every $2 over the limit |
Source: Social Security Administration. Table by author.
So, for instance, say you're 65 years old with an FRA of age 67, and you have a part-time job earning $25,000 per year. You won't reach your FRA in 2024, so you're subject to the $22,320 annual limit. With an income that's $2,680 over the limit, your benefits will be reduced by $1,340 per year -- amounting to roughly $112 per month.
The retirement earnings test also applies to standard retirement benefits. But because spousal benefit payments tend to be lower, these reductions can sometimes hit harder. The good news, though, is that they only apply until you reach your FRA. At that point, the Social Security Administration will recalculate your benefit to account for the amount that was withheld due to your income.
3. Divorce benefits are also an option for some retirees
Spousal benefits aren't only available to currently married retirees. In some cases, divorced spouses can also qualify for extra payments each month. The requirements to qualify for divorce benefits include:
- You cannot currently be married. (However, if your ex-spouse has remarried, it won't affect your ability to take divorce benefits)
- You and your former spouse must have been married for at least 10 years
- You must be at least 62 years old (unless you're caring for a child who is under age 16 or disabled)
- You must wait to file until your ex-spouse begins claiming (unless you've been divorced for at least two consecutive years)
Similar to spousal benefits, the maximum payment is 50% of your former spouse's full benefit amount -- which you'll receive if you file at your FRA. If you're also earning retirement Social Security and your payment is higher than the maximum divorce benefit, you won't qualify for this type of payment.
Finally, taking divorce benefits (or spousal benefits) will not affect your spouse's or ex-spouse's benefit in any way. If your ex-spouse has remarried, their current partner can also claim spousal benefits even if you're receiving divorce benefits.
Millions of older adults rely on Social Security in retirement, and if you're married or divorced, you could be owed hundreds of dollars more per month. Not everyone will qualify for spousal benefits, but if you do, it could have a major impact on the quality of your retirement.
