There's plenty to love about Social Security, including how it routinely keeps millions of Americans financially afloat in their golden years. That's one aspect I'm sure most people can rally behind, regardless of their political views.
That said, one knock on Social Security is that it's not always the easiest program to understand. There are constant changes and little-known rules that can impact your benefits, both positively and negatively, depending on the situation.
Regarding lesser-known rules, there are three in particular that specifically affect married couples. They may not apply to every married couple, but it's worth knowing in case they apply to your current or future situation.
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1. You don't need a work history to receive Social Security benefits
The amount someone receives in Social Security is mostly based on career earnings and how much they've paid in Social Security payroll taxes. The idea is that higher earners pay more in Social Security taxes (up to a point) and then receive higher Social Security benefits in retirement.
However, Social Security offers spousal benefits, which allow someone to claim Social Security benefits based on their partner's work history. This is ideal for those who may have spotty work histories or worked low-income jobs compared to their spouse.
To qualify for spousal benefits, you must have been married for at least a year, your spouse must currently be receiving benefits, and one of the following must be true: (1) you're 62 years old, (2) you're caring for a child under age 16, or (3) you're caring for a child with a disability that began before age 22.
Assuming you qualify for spousal benefits, you can receive up to 50% of your spouse's primary insurance amount (PIA), which is their monthly benefit at their full retirement age (FRA).
2. Claiming early reduces benefits, perhaps by more than you'd think
Like standard Social Security retirement benefits, claiming spousal benefits before your FRA will permanently reduce the monthly amount you receive. The difference, however, is how much spousal benefits are reduced by claiming early.
Claiming standard benefits early will reduce the monthly amount by 5/9 of 1% for each month before full retirement age, up to 36 months, and 5/12 of 1% for each additional month.
Claiming spousal benefits early will reduce the monthly amount by 25/36 of 1% for the first 36 months prior to FRA and then 5/12 of 1% each month after.
If we assume someone's FRA is 67, here's how much they could expect their monthly benefit to be reduced by, depending on when they claim:
| Claiming Age | Standard Benefits Reduction | Spousal Benefits Reduction |
|---|---|---|
| 66 (claiming 12 months prior to FRA) | 6.67% | 8.33% |
| 65 (claiming 24 months prior to FRA) | 13.33% | 16.67% |
| 64 (claiming 36 months prior to FRA) | 20% | 25% |
| 63 (claiming 48 months prior to FRA) | 25% | 30% |
| 62 (claiming 60 months before FRA) | 30% | 35% |
Calculations by author.
If you're planning to claim spousal benefits, it makes sense to wait and claim at your FRA if you can. But don't claim later than your FRA, because delaying past that doesn't increase monthly benefits like it does with standard retirement benefits.
3. If your spouse dies while you're claiming, benefits will convert
There are two situations in which you can receive Social Security spousal benefits without being married: if you're divorced or if your spouse is dead.
If you were married for at least 10 years and then divorced, you may be eligible for spousal benefits, even if your ex-spouse remarries. To be eligible, other criteria -- such as being 62 and currently unmarried -- must still be met.
If you're currently receiving spousal benefits and your spouse passes away, your benefits will be converted to survivors benefits. This typically works out in a recipient's favor because survivors benefits allow you to receive up to 100% of your late spouse's benefits and not just up to 50%.
Neither of these situations may be ideal, but it's better to know what to expect rather than being caught off guard or having to learn it all on the fly.
