Social Security benefits for spouses often confuse Americans nearing retirement, potentially jeopardizing their financial security in their golden years. Recent findings show alarming knowledge gaps, with nearly 30% unaware of claiming options for spouses, and almost 50% oblivious to divorced spouse benefits.
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1. Unlocking Spousal Benefits
Retirement benefits are accessible to retired partners and spouses, even those without a work history. Certain conditions must be met: the spouse must be at least 62 years old, and the partner must be receiving retirement benefits. Some spouses may be eligible for both retired worker and spousal benefits but will automatically receive the bigger payout upon claiming.
2. Maximizing Benefits at Full Retirement Age
Spousal benefits are contingent on the claiming age and the retired worker’s primary insurance amount (PIA). Claiming at full retirement age guarantees a benefit equal to half of the retired worker’s PIA, whereas claiming earlier results in a reduced payout. Importantly, delayed retirement credits do not apply to spousal benefits.
Various percentages (rounded to the nearest one-tenth) showcase the spousal benefit at different ages post-62, with full retirement age set at 67.
Data source: The Social Security Administration. Note: Percentages have been rounded to the nearest one-tenth of a percent.
3. Benefits for Divorced Spouses
Divorced spouses meeting specific criteria can collect Social Security benefits based on their ex-partner’s work record, regardless of their ex-partner’s marital status.
Further, concerns about the impact of claiming benefits on an ex-partner’s payout are unfounded. Claiming does not alter the ex-partner’s benefit or inform them of the claim.
4. Claiming Retirement Benefits
Spouses eligible for both retired worker and spousal benefits cannot claim one and delay the other. Upon filing for Social Security, they automatically receive the larger of the two payments. This rule, however, does not apply to survivors benefits.
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