For many Americans, Social Security serves as a financial lifeline during retirement. And whether you're single or married, those benefits may provide a large chunk of your income later in life.
There are certain Social Security rules that married couples in particular need to be aware of. Here are three that may help you better plan for your retirement.
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1. You can claim benefits based on your spouse's work history
Typically, people earn Social Security benefits by working and paying taxes on their wages. But there's another way to qualify for Social Security in retirement -- spousal benefits.
If you're married and your spouse is eligible for Social Security, you may be entitled to spousal benefits, even if you never worked. But you can collect those benefits only once your spouse files for Social Security, not before.
2. Spousal benefits can't be boosted
When you're claiming Social Security based on your own earnings record, there's a huge incentive to delay your filing past full retirement age. For each year you do, until you turn 70, your benefits get a permanent 8% boost.
But those delayed retirement credits do not apply to spousal benefits. So, once your full retirement age arrives, you might as well claim those benefits and start enjoying them or using them to cover essential expenses.
The maximum amount your spousal benefits are worth is 50% of the primary earner's benefit at their full retirement age. So, let's say your spouse is entitled to $2,200 in Social Security at their full retirement age. The most you can collect in spousal benefits is $1,100 at your full retirement age.
Keep in mind, though, that while spousal benefits can't be boosted, they can be reduced if you file for them early. So, while you can claim them as early as age 62, you may not want to.
3. Spousal benefits convert to survivor benefits automatically
While spousal benefits max out at 50% of your spouse's benefit at their full retirement age, that's not necessarily the maximum amount Social Security will ever pay you. If you outlive your spouse, once they pass, your spousal benefits will be converted to survivor benefits automatically.
Survivor benefits are worth 100% of your spouse's benefit. In the example above, you'd be bumped up to $2,200 upon your spouse's passing.
Even if your household has access to income outside of Social Security in retirement, it's important to understand how spousal benefits work if one of you is planning to collect them. Read up on spousal benefits, as well as Social Security filing strategies in general, so that you're able to make the most of those monthly checks.
