When it comes to Social Security, many people are surprised to learn that benefits are not just based on their own work history. In some cases, you may receive benefits based on your spouse’s earnings record. Understanding how spousal benefits work can help you maximize the amount you receive during retirement and make smarter decisions about when and how to claim.
Here’s what you need to know about Social Security spousal benefits and how they could impact your financial future.
What Are Social Security Spousal Benefits?
Spousal benefits allow a husband or wife to claim Social Security payments based on their spouse’s work history rather than their own. This is particularly helpful for individuals who may have spent time out of the workforce, worked part-time, or earned significantly less than their spouse during their careers.
If you qualify, you can receive up to 50 percent of your spouse’s full retirement benefit amount. This is based on your spouse’s benefit at full retirement age, not the amount they might receive if they claim early or delay benefits.
Who Is Eligible for Spousal Benefits?
To qualify for Social Security spousal benefits, you must meet the following conditions:
- You must be at least 62 years old.
- Your spouse must already be receiving their Social Security retirement or disability benefits.
- You must have been married for at least one year.
Even if you have worked and earned Social Security benefits based on your own record, you may still be eligible for a spousal benefit if it would pay more than your personal benefit amount.
Additionally, divorced spouses may qualify for benefits based on their ex-spouse’s record if the marriage lasted at least 10 years and they have not remarried.
How Much Can You Receive?
The maximum spousal benefit is 50 percent of your spouse’s full retirement amount. However, if you claim spousal benefits before reaching your own full retirement age, your benefit will be reduced.
For example, if your full retirement age is 67 but you start collecting at 62, your spousal benefit could be reduced by as much as 32.5 percent. On the other hand, waiting until your full retirement age allows you to collect the maximum possible amount.
It is important to note that spousal benefits do not increase beyond full retirement age. Delaying past that age will not result in higher spousal payments, the way it would if you were claiming your own benefit.
Spousal Benefits and Your Own Work Record
If you qualify for both your own retirement benefit and a spousal benefit, the Social Security Administration will first pay you based on your own work history. If the spousal benefit is higher, they will supplement your payment to match the higher amount.
You cannot receive both benefits fully. Instead, you get the larger of the two amounts, not the sum of both.
Should You Take Spousal Benefits Early?
Choosing when to claim spousal benefits is a big decision. Taking benefits early could result in permanently reduced payments, while waiting until full retirement age can maximize the amount you receive. Every situation is different, which is why it is often a good idea to consult with a financial advisor before making a decision.
If you are looking for personalized guidance about Social Security and retirement planning, you can connect with an experienced advisor like Matthew J. Dixon by visiting https://retiretrunorth.com/about-us/matthew-j-dixon-financial-dvisor/.
Takeaways About Spousal Benefits
- You can collect up to 50 percent of your spouse’s full retirement benefit if you meet the eligibility requirements.
- Claiming early reduces your spousal benefit amount.
- You cannot collect both your full benefit and your spousal benefit. You will receive whichever is higher.
- Strategic planning around when to claim can help you maximize your lifetime Social Security income.
Understanding spousal benefits can make a major difference in your retirement planning. Knowing your options and working with a professional can help ensure you make the best decisions for your financial future.
