Unlocking the Benefits of Spousal Social Security
Social Security isn’t just for retirees; millions of others benefit from it as well. Among them are the spouses of retirees. In September, approximately 1.9 million people claimed Social Security through the spousal benefit, receiving an average monthly check of about $909, or roughly $10,908 per year.
Given its complexity, retired couples should review the spousal benefit yearly to determine eligibility and its suitability according to their circumstances. Below are three essential insights for retired couples.
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1. Eligibility and Benefit Amounts
The spousal benefit aims to support individuals who do not qualify for their own Social Security benefits. To be eligible, workers must have accrued 40 work credits, akin to a decade of employment. A spouse can claim this benefit if they are married to someone who qualifies and has filed for their benefits.
Eligibility starts at age 62, although younger spouses can qualify if they have dependent children under 16 or children with disabilities who are entitled to benefits based on the spouse’s records.
Claiming benefits early can lead to reductions. For example, spousal benefits taken at 62 can drop to 32.5% of the full amount the spouse may receive at their full retirement age (FRA), which is 67 for individuals born in 1960 or later. The Social Security Administration (SSA) reduces spousal benefits by 25/36 of 1% for each month prior to the FRA. If the months exceed 36, a further reduction of 5/12 of 1% per month applies. Spouses retiring at their FRA can receive as much as half of their partner’s benefit at that age.
2. Spousal Benefits for Qualifying Workers
Even workers who meet the requirement for their benefits can still take advantage of the spousal benefit if it is greater than their own. The SSA allows a “deemed filing” process, meaning you only need to apply once if you’re eligible for both benefits.
When applying, the SSA will first disburse your retirement benefit. If the spousal benefit is higher, the SSA will adjust the payout to reflect the greater amount. For example, if you qualify for a $750 monthly retirement benefit and a $1,000 spousal benefit, you would receive the retirement payout plus an additional $250 to match the spousal benefit.
3. The Impact of Divorce
A spouse can qualify for spousal benefits with just one year of marriage. However, for divorced individuals, the marriage must last a minimum of ten years to keep eligibility for spousal benefits.
Additionally, those who have remarried are likely to lose the right to claim from the ex-spouse unless they remain single. Nonetheless, former spouses can still anticipate benefits even if their ex-partner has remarried.
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