One benefit of being married in retirement is potentially getting to collect two Social Security checks instead of just one each month. That takes some pressure off your joint savings and gives you more spending power.
But because Social Security can be a bit nuanced for married folks, it's important to understand your options, especially in the context of claiming spousal benefits. Here are three rules you should be aware of if you're married.
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1. You can't apply for spousal benefits until your spouse signs up
If you're claiming Social Security spousal benefits, you may be eager to sign up right away. You can file for spousal benefits as early as age 62. But you'll shrink your monthly payments if you don't wait until full retirement age, which is 67 if you were born in 1960 or later.
However, you'll also need to wait for your spouse to sign up for Social Security to get spousal benefits. If you're divorced, you don't need to wait on your spouse to file, though.
2. You can't grow a spousal benefit
When you're claiming Social Security based on your personal earnings record, there can be a huge incentive to wait past full retirement age. For each year you do, until you turn 70, your benefits get an 8% boost.
But this incentive only applies to benefits you claim on your own earnings record. You can't grow a spousal benefit, so there's no sense in waiting beyond full retirement age to claim it.
Social Security spousal benefits max out at 50% of your spouse's benefit at their full retirement age. So if your spouse is eligible for monthly checks of $3,000 at that point, you're eligible for up to $1,500 in spousal benefits each month -- but not more.
That said, if you outlive your spouse, your spousal benefits are converted to survivor benefits. In that situation, you'd be eligible for the full amount your spouse was entitled to -- $3,000.
3. You can only get one set of benefits at a time
It may be that you're eligible for two types of Social Security benefits in retirement -- spousal benefits and benefits based on your own earnings history. In that situation, Social Security will pay you the higher of the two. But you can't collect both sets of retirement benefits at the same time.
So for example, say you're eligible for a $1,500 monthly spousal benefit, but a $1,700 monthly benefit based on your own wage history. If so, Social Security will pay you that $1,700 a month only. You wouldn't be eligible for $3,200 a month.
Social Security is a complex program, and spousal benefit rules can be tricky to work though. That's why your best bet is familiarizing yourself with them well ahead of retirement. It's also a good idea to talk to your spouse about Social Security strategies so you can work together to make the most of that vital income stream.
