If you're one of the record number of Americans retiring this year (or in the next few years), you may be doing everything you can to prepare, including contributing to an employer-sponsored retirement plan. You may also have questions about Social Security. Specifically, you may wonder if you'd be better off claiming your own Social Security benefits or claiming benefits based on your spouse's work record.
Here's how you can tell if you qualify for spousal benefits, and whether claiming them would put you ahead in money.
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Should you claim spousal Social Security benefits?
Part of retirement planning involves determining how much you can expect to receive in Social Security benefits, and the question of whether you want to claim spousal benefits comes down to your work record versus your spouse's. For example, if you stayed at home to raise the kids, care for a sick relative, or volunteer, claiming spousal benefits is likely an easy decision.
However, if you have a work record of your own, it's a matter of comparing your expected benefits with theirs. One easy way to do that is by creating a free account on the my Social Security site. This Social Security Administration (SSA) site provides a wealth of information -- from every job you've worked (and how much you earned) to how much you can expect to receive in monthly benefits at different ages.
For example, you can check how much you'd receive at age 62 and compare that with what you'd receive at 67 or 70. Then, if your spouse has an account of their own, you can compare your expected Social Security benefits to theirs. As a spouse, you're eligible to receive up to 50% of what your partner would receive at full retirement age (FRA). For most Americans, that's 66 or 67, depending on the year they were born.
Let's say you're due to receive $1,500 per month at age 67, and your spouse is due $3,500 per month. Then 50% of $3,500 is $1,750, meaning you'd get an extra $250 in each monthly check by claiming spousal benefits.
Eligibility
If you learn that claiming spousal benefits puts you ahead financially, here are the requirements you must meet to make a claim:
- You must be at least 62 years old. However, at that age, you're eligible for only 32.5% to 35% of your spouse's monthly benefit at FRA. There are two important exceptions to this rule: You don't have to wait until age 62 if you're caring for a child under 16 or a child who has a disability and is entitled to receive benefits based on your spouse's record. If that's the case, you may qualify for the maximum spousal benefit of 50%.
- Your spouse must already be collecting retirement or disability benefits when you apply for spousal benefits.
- You're eligible for spousal benefits if you're in a same-sex marriage (or you're divorced from a same-sex partner), thanks to the U.S. Supreme Court's 2015 decision recognizing marriage equality.
- You must be married for at least one year before you can qualify for spousal benefits. The exception does not apply if you already share a child with your spouse.
- Because different states have different laws, you may also qualify if you're in a civil union, are a registered domestic partner, or are in a common-law marriage.
Eligibility as a divorced spouse
Here are the eligibility requirements to claim spousal benefits as a divorced spouse:
- Typically, you must be 62 or older. However, there are three exceptions: If your ex has passed away, you can claim as early as age 60. If your ex has passed away and you're disabled, you can claim at age 50. If your ex has passed away and you're caring for their child who's either under 16 or disabled, you can begin collecting spousal benefits at any age.
- You must have been married to your ex for a minimum of 10 years and divorced for at least two years.
- Your ex-spouse must already be receiving Social Security benefits. If your ex is eligible to receive benefits but hasn't applied, you can apply if you've been divorced for a minimum of two years.
Every family unit is unique, and one partner often earns more than the other. Before claiming benefits based on your own work record, take a few minutes to figure out whether taking that route will score you the highest possible benefit.
