Generally, to qualify for Social Security benefits in retirement, you need to work and help fund the program via the payroll taxes that are imposed on your earnings. But it's possible to collect Social Security as a retiree without working a day in your life.
If you're eligible for spousal benefits, you can collect Social Security based on your life-partner's record. However, the rules of Social Security spousal benefits can be a bit complex. Here are a few key things to know about them if you're planning to apply.
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1. You don't need to still be married to claim spousal benefits
You might assume that if you're no longer married to your spouse, you're not eligible to collect Social Security on their earnings record. But that's not so.
Being divorced doesn't automatically take Social Security spousal benefits off the table. To be eligible, however, you need to have been married to your ex-spouse for 10 years or more. And if you've since remarried, you can't collect Social Security benefits on your former spouse's record unless your subsequent marriage ends -- either by annulment, divorce, or death.
If you claim spousal benefits from Social Security based on an ex-spouse's record, it won't impact their benefits at all. It also won't impact any spousal benefit your ex's current husband or wife may be eligible for.
2. If you're married, you'll need to wait until your spouse claims Social Security to file for spousal benefits
If you've been divorced for at least two years, you can apply for spousal benefits from Social Security, even if your ex hasn't yet put in their benefit claim. But if you're married, you must wait for your spouse to sign up for Social Security before you're eligible for a spousal benefit.
For this reason, it's important for you and your spouse to discuss your filing options together. They may want to delay their Social Security claim for a larger monthly benefit, but if that forces you to put off collecting spousal benefits, your partner may be willing to adjust their plan.
3. Your spousal benefit maxes out at 50% of your spouse's benefit at full retirement age
When you're claiming Social Security benefits based on your own earnings record, there's an upside to delaying your filing beyond your full retirement age. For each year you do, up until age 70, your monthly benefit will get an 8% boost.
But there's no such thing as boosting spousal benefits. The maximum spousal benefit Social Security will pay you is 50% of what your spouse is entitled to at their full retirement age.
Let's say the full retirement age is 67 for both you and your spouse, based on your respective years of birth, and at that point, your spouse will be entitled to a monthly benefit of $2,000. In that case, the most you can get from Social Security in spousal benefit form is $1,000. There's no sense in you not claiming your spousal benefit at 67 if it's available to you because delaying your filing won't boost that $1,000 payday.
Knowing how spousal Social Security benefits work could make your retirement planning go a lot smoother. Sit down with your spouse if you're still married and get familiar with the rules so you both know what to expect. And if you're divorced, get all the information you need so you're able to claim your spousal benefits from Social Security at the right time.
