Social Security benefits are a lifesaver for many retirees, keeping millions financially afloat. One issue some people encounter, however, is that benefits are mostly based on career earnings, and not everyone has a long enough or substantial enough work history to qualify.
That's where Social Security spousal benefits can save the day. Social Security allows people to claim benefits based on their partner's earnings record, and in many instances, this is a great route to take. If you're considering going this route, here are three things you should know.
1. Eligibility and how much you can expect to receive
Someone's primary insurance amount (PIA) is how much they'd receive in benefits if they claimed at their full retirement age. By claiming spousal benefits, you're eligible to receive up to 50% of your partner's PIA. For example, if their PIA was $2,000, you could receive up to $1,000 in monthly benefits.
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To be eligible for spousal benefits, you must check these three boxes:
- Be at least 62 years old, caring for a child under age 16, or caring for a child with a disability that began before age 22.
- Be married for at least one year.
- Your partner must currently be receiving benefits.
2. How spousal benefits are affected by when you claim
Like standard Social Security benefits, the amount you receive is reduced if you claim before your full retirement age. The difference, though, is by how much. As an example, we'll take someone whose full retirement age is 67 (anyone born in 1960 or later).
Here's how much their benefits will be reduced at different claiming ages:
| Claiming Age | Spousal Benefits Reduction | Standard Benefits Reduction |
|---|---|---|
| 66 | 8.33% | 6.67% |
| 65 | 16.67% | 13.33% |
| 64 | 25% | 20% |
| 63 | 30% | 25% |
| 62 | 35% | 30% |
Data source: Social Security Administration.
For instance, in this case, if your spouse's PIA was $2,000 and you're eligible for $1,000 at your full retirement age, you'd receive $700 if you claim at 63.
A key difference between spousal and standard benefits is that delaying benefits past your full retirement age doesn't increase them as it does with standard benefits. Whatever you're eligible to receive at your full retirement age is the maximum amount you'll receive.
3. Divorced people may be eligible for spousal benefits
If you're divorced, you may still be eligible for spousal benefits as long as the following apply:
- You were married for at least 10 years
- You haven't remarried (your ex-spouse can remarry without affecting your eligibility)
- You must be divorced for at least two years
While the primary claiming spouse must currently be receiving benefits for someone to be eligible for spousal benefits, this doesn't apply to former spouses. As long as you meet the above criteria, you're good to go.
