Social Security with spousal benefits is a program in the United States that allows spouses to receive Social Security benefits based on their own work history or, in some cases, on their spouse’s work history. Here’s everything you need to know about Social Security with spousal benefits:
Purpose of Spousal Benefits:
Social Security spousal benefits are designed to provide financial support to spouses who may have limited or no work history of their own. They help ensure that spouses are financially secure, especially in retirement or during times of disability.
Eligibility for Spousal Benefits:
To be eligible for spousal benefits, certain criteria must be met:
- Marital Status: You must be legally married to the primary Social Security recipient.
- Age: You generally must be at least 62 years old to claim spousal benefits, but there are exceptions and strategies based on your age.
- Primary Earner’s Eligibility: The primary earner (the spouse with the higher Social Security benefit) must either be receiving Social Security benefits or be eligible to receive them (typically at age 62 or older).
Calculation of Spousal Benefits:
Spousal benefits are typically up to 50% of the primary earner’s full retirement benefit. The actual amount you receive can vary based on factors such as your age when claiming and the primary earner’s benefit amount.
If your own benefit is higher than the spousal benefit, you will receive your own benefit, not the spousal benefit.
Claiming Strategies:
Married couples can strategize to maximize their combined Social Security benefits. This may involve one spouse delaying their own benefits to earn delayed retirement credits while the other claims a spousal benefit.
Divorced Spouses:
In some cases, divorced individuals may be eligible for spousal benefits based on their ex-spouse’s work history if they meet specific conditions, including a minimum marriage duration and not remarrying before age 60.
Survivor Benefits:
If a spouse passes away, the surviving spouse may be eligible for survivor benefits based on the deceased spouse’s work history. Survivor benefits can be a percentage of the deceased spouse’s full retirement benefit and can be claimed as early as age 60 (or age 50 if disabled).
Full Retirement Age (FRA):
Your spousal benefit is highest when you reach your full retirement age, which is typically between 65 and 67, depending on your birth year. If you start receiving spousal benefits before your FRA, your benefit amount may be reduced.
Deemed Filing:
If you were born on or after January 2, 1954, and you file for spousal benefits, you are “deemed” to be filing for both your own benefits and the spousal benefit. This means you will receive the higher of the two benefit amounts, not both.
Government Offset Rules:
Spousal benefits can be affected by government pension offset (GPO) rules, which may reduce or eliminate the spousal benefit if you receive a government pension based on work not covered by Social Security.
Consultation and Planning:
It’s important to consult with the Social Security Administration or a Social Security advisor to understand your unique situation and make informed decisions about when and how to claim spousal benefits.
Social Security with spousal benefits can provide valuable financial support to spouses, especially when one spouse has a limited work history. Understanding the rules and options available can help you and your spouse make the most of your Social Security benefits and plan for a financially secure future.