Spousal Social Security benefits bring retired couples thousands of dollars in additional income annually. Claiming them is fairly straightforward -- all you have to do is apply and provide documentation proving your identity and relationship to the worker. But optimizing spousal benefits is a different matter entirely.
Here are three important things to keep in mind that can help you determine when you're ready to apply for spousal Social Security benefits.
Image source: Getty Images.
1. Eligibility requirements
You can claim spousal Social Security benefits if all of the following are true for you:
- You're currently married to a worker who qualifies for Social Security retirement benefits, or you were married to one for at least 10 years and have not remarried.
- You are at least 62 years old, or you're caring for a child who is under 16 or claiming Social Security disability benefits.
- The qualifying worker is already claiming Social Security, or you've been divorced from the qualifying worker for at least two years.
If any of the above things aren't true, you cannot claim a spousal Social Security benefit right now. However, you can still claim a retirement benefit on your own work record if you qualify for one and are at least 62 years old.
2. What happens if you're dually eligible for benefits
Some people are dually eligible for Social Security benefits -- that is, they qualify for a retirement benefit based on their own work history while also qualifying for a spousal benefit through their marriage to an eligible worker. But the Social Security Administration won't pay you both benefits.
If your spouse isn't claiming yet, you can only claim your retirement benefit for now. But when your partner applies, the Social Security Administration will give you the larger of your own benefit or your spousal benefit.
Technically, you always receive your own benefit, but you may get a portion of your spousal benefit if your spousal benefit is larger. For example, say your own retirement benefit is worth $1,000 and your spousal benefit is worth $1,500. Then, the Social Security Administration would pay you your $1,000 monthly benefit, plus $500 of your spousal benefit for a total of $1,500 per check.
3. How your claiming age affects your checks
The maximum spousal Social Security benefit is up to one-half of the benefit your spouse is entitled to at their full retirement age (FRA). This is between 66 and 67 for today's workers. To claim your largest spousal checks, you typically must wait until you reach FRA to apply.
You can claim earlier, but doing so will cost you. Specifically, you'll lose 25/36 of 1% per month for up to 36 months of early claiming. Those who claim more than 36 months early lose an additional 5/12 of 1% per month.
For example, if you have an FRA of 67 and apply for spousal benefits at 62, you'd shrink your checks by 35%. That would knock a $1,000 maximum spousal benefit down to just $650 per month.
But that doesn't mean claiming early is always the wrong choice. Those with short life expectancies and those unable to cover their bills without Social Security otherwise do better by signing up earlier. It's also worth mentioning that those caring for an underage or disabled child see no reduction to their spousal benefit, regardless of when they claim.
It's a good idea to discuss your Social Security claiming strategy with your spouse so you're both on the same page before you apply. Then, if you have any questions about your specific situation, reach out to the Social Security Administration.
