Spousal benefits can provide additional inflation-protected retirement income for married couples. As of the latest data from the Social Security Administration (SSA), nearly 2 million people receive a spousal benefit.
A Social Security spousal benefit is designed for couples in which one spouse earned significantly more throughout their working lifetime. A common situation where spousal benefits are often paid is where one spouse was primarily a stay-at-home parent.
The spousal benefit can be as much as half of the higher earner's full retirement benefit, and the average recipient gets $950 per month.
With that in mind, there are a few requirements that need to be met before a spousal benefit can be paid. Here's the quick list, and then I'll go over what you need to know about each one:
- Age.
- Your own benefit.
- Filing requirements.
- Marriage requirements.
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Age requirements for spousal Social Security benefits
Just like with Social Security retirement benefits, you need to be at least 62 years old to collect a spousal benefit on someone else's work record. The one exception is if you're caring for a child under 16 years old or who is disabled, and that child is also eligible for benefits based on your spouse's work record.
In the latter case, you may collect your full spousal benefit regardless of your age. But unless you have a qualifying child under your care, claiming a spousal benefit before full retirement age (FRA) will result in a permanent benefit reduction. As mentioned earlier, a spousal benefit can be as much as 50% of your spouse's full retirement benefit, but it can be as low as 32.5% of this amount if you claim it at age 62.
However, one important rule to mention is that unlike standard Social Security retirement benefits, there is no increase in spousal benefits for delayed retirement. Fifty-percent of the higher earner's benefit is the most a spousal benefit can be. Period.
You can only get one benefit
The second rule to know is that you can get a spousal benefit or a retirement benefit based on your own work record. In other words, one requirement to get a spousal benefit is that the benefit you'd be entitled to on your spouse's work record must be higher than the benefit you'd be entitled to from your own.
Technically, if you qualify for any Social Security benefit on your own work record, that will be paid to you first. And if the calculated spousal benefit is higher, the SSA will increase it to account for the difference. But the point is that you don't get a full spousal benefit and your own full benefit amount.
For example, let's say that based on your own work record, you'd be entitled to $800 per month. However, you are at full retirement age and your spouse's full retirement benefit is $2,500 per month, giving you a spousal benefit of $1,250. The SSA would pay your $800 benefit and add $450 as a spousal benefit.
Your spouse must file for their own benefit as well
Years ago, you could file for a spousal benefit even if your spouse wasn't actively collecting their own benefit (a strategy known as "file and suspend"). But this loophole was closed.
Now, a key requirement is that a spousal benefit can only be paid if the primary earning spouse is actively collecting their own retirement benefit. If your spouse decides to suspend their benefit (which they can do after reaching full retirement age), your spousal benefit will be suspended as well.
You must meet a marriage requirement
As the name suggests, spousal benefits are designed for married couples. However, in some cases divorced spouse's can get a benefit as well. As long as your marriage lasted for at least 10 years, you might be able to get a spousal benefit on your ex-spouse's work record.
The bottom line
When you apply for Social Security, the SSA will consider your work record, as well as that of your qualifying spouse, to determine if you qualify for a spousal benefit, and if so, how much it could be. So, while it will be automatically determined (in most cases) whether you qualify for a spousal benefit or not, knowing how the process works can help you prepare for retirement and make the best Social Security decisions for you and your family.
