Many people end up relying on Social Security for income during retirement. And even if you have savings, you might appreciate Social Security sending you a monthly check to supplement your IRA or 401(k) withdrawals.
But it's important to understand the ins and outs of Social Security -- not just when it comes to claiming benefits on your own earnings record, but also when claiming spousal benefits. Here are a few things about spousal benefits you may not know, but should.
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1. You can claim spousal benefits even if you're no longer married
You might think that something called spousal benefits would only be available to actual spouses. But if you're divorced, you may be able to claim spousal benefits from Social Security based on a former spouse's record. This assumes that you were married to your ex-spouse for at least 10 years, and that you have not remarried.
2. If you're married, you can't sign up before your spouse
If you're divorced and are claiming spousal benefits, you don't automatically need to wait until your spouse claims Social Security to get benefits of your own. But if you're married, you can't get those benefits until your spouse signs up.
Meanwhile, Social Security gives seniors incentive to delay their claims by offering larger monthly benefits to those who wait. If that's something your spouse is planning to do, it could affect the timing of your spousal benefits. It's something worth discussing, at the very least.
3. Spousal benefits aren't eligible for delayed retirement credits
When you're claiming Social Security based on your own earnings record, your benefits get to grow 8% for each year you delay your filing past full retirement age, which is 67 if you were born in 1960 or later. But spousal benefits aren't eligible for the same boost.
The maximum spousal benefit Social Security will pay you is 50% of the sum your spouse is entitled to at their full retirement age. So once you reach your full retirement age, you might as well take benefits right away.
4. You can collect spousal benefits even if you're eligible for your own benefit
It may be that you worked at several points in your life and are eligible for your own monthly benefit from Social Security. If so, you should know that you may still be entitled to spousal benefits, if they're larger than the benefit you'd get based on your own earnings history.
However, Social Security will not pay you two sets of benefits at the same time. You can't collect a monthly benefit based on your own earnings record plus a spousal benefit; you can only receive the larger of the two. If you're signed up for Social Security based on your own benefit and your spouse then files, you should be bumped up to a spousal benefit automatically if that's the larger number.
There's lots to know about Social Security in general, particularly in the context of spousal benefits. Make sure you understand the rules completely, so you're able to make the most of whatever benefits you're entitled to.
