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Social Security Spousal Benefits: What You MUST Know
Social Security is an essential program that provides retirement, disability, and survivor benefits to millions of Americans. One often-overlooked benefit of the program is spousal benefits, which can be a vital source of income for couples during retirement. Here’s what you need to know about Social Security spousal benefits and how they can help you secure your financial future.
Eligibility for Spousal Benefits
To be eligible for spousal benefits, you must be married to a person who has worked long enough to qualify for Social Security benefits. The spouse who earned the higher income must file for their own retirement benefits before the lesser-earning spouse can receive spousal benefits. Both spouses must be at least 62 years old and have been married for at least one year.
How Spousal Benefits Work
Spousal benefits allow a lesser-earning spouse to collect up to 50% of their higher-earning spouse’s Social Security benefit. Suppose the higher-earning spouse’s full retirement age (FRA) benefit is $2,000 per month. In that case, their spouse can receive up to $1,000 per month in spousal benefits if they claim them at their FRA. However, if the spouse claims benefits before their FRA, their benefit will be reduced.
Calculating Spousal Benefits
The amount of spousal benefits you’re eligible for depends on several factors, including your age, your spouse’s FRA benefit amount, and whether you’ve claimed your own retirement benefits. If you have not claimed your own retirement benefits and your spouse is already receiving their benefits, your spousal benefits will be calculated based on your spouse’s FRA benefit amount. If you both are at least FRA and have claimed your retirement benefits, you will receive the higher of the two benefits.
When to Claim Spousal Benefits
Timing is crucial when it comes to spousal benefits. If you claim spousal benefits before your FRA, your benefit amount will be reduced permanently. If you wait until your FRA to claim spousal benefits, you will receive the maximum 50% benefit amount. You can also delay claiming spousal benefits until age 70, at which point your benefit amount will increase by 8% for each year you defer.
Bottom Line
Spousal benefits can make a significant difference in a couple’s retirement income. Understanding the eligibility requirements, how the benefits work, and when to claim them can help you maximize your Social Security benefits as a couple. Consider working with a financial advisor to develop a comprehensive retirement plan that includes Social Security benefits and other income sources to ensure a secure financial future.
Perfectly explained, great thanks, great video, exactly what i needed to here
Hi Josh! Thank you so much for the info. I do have a couple clarifying questions for you. Are you saying ideally and best case scenario, both spouses if they are both at full retirement age could get BOTH their own retirement fund AND half their spouse’s retirement fund? What about if one person had an ex-spouse that ex-spouse is using that person’s retirement income to draw for her own social security? How does that all work? I would appreciate it if maybe you can do a video on it(ex-spouse and social security).
A simple formula to figure out the spousal benefit if the lower earning spouse started ther benefit early and is wating for their FRA to file for the spousal benefit.
#1. Subtract you starting benefit from what would had been your FRA benefit.
#2 Take 50% of the higher earning spouses benefit and subtract the difference from #1.
#The answer from #2 is what the total spousal benefit will be with the reduction.
Ok. Good stuff.
A simpler formulation for spousal benefit is what S.S. told me in a formal interview since I’m taking S.S. at 62 and receiving 1st check in February of this year.
First is: you must be retired for a full month before the 1st check.
2nd: My wife is older. She retired at 62. She will get in extra monies due to spousal benefits when I retire: – 1/2 my Full Retirement – MINUS- her Full Retirement. The difference is How Much Extra she receives on top of what she already receives (which was less than her full retirement money because she retired early). In our case: she will receive $425 extra per month.
So. Because I’m retiring early I receive less. BUT, because I retire early She receives more.
Bottom Line: Instead of “losing” approx 700 a month by retiring 5 years early, it ends up by being “only” approx 275 a month by retiring early because of Spousal Benefit.
If the wife starts collecting at her own reduced benefit at 62, can she then collect 50% of the husband benefit once the wife arrives at her FRA?
My wife's situation is totally wonky. She was already disabled and collecting disability payments from the social security program in her 50s. She is now 67. When she turned 62, born in 1954 so FRA of age 66, they automatically converted her to her social security benefit. My assumption is that she will be considered to have begun early benefit at age 62.
Just past 62 myself, I'm postponing collection of social security for a while, but not longer than age 65. If she will only receive 33% of my benefit, it would almost the same as what she was getting. There is almost no benefit to her, for me to continue postponing my benefit. This is very important information to planning our future.
Thank you, Josh, for this very informative video. I had never heard this before, and frankly I see room for improvement in the way this is laid out. We weren't even informed we would have a choice if she could postpone waiting until later to switch to social security, or maybe even just didn't understand it. I wouldn't be surprised to learn many social security program staffers don't understand this either.
What about this scenario? My spouse started benefits at 63 and is getting $1500. FRA age for her was 66Y/3M. My benefit at FRA 66Y/4M would be $2400. Is it possible for me to delay my benefit and file off her benefit and get 1/2 of her benefit? I would like to delay until I hit 70 when I would be getting $3000. Even $750 would be a help make it easier to delay until 70.
Josh made the statement that the spouse’s own record is likely higher than the spousal benefit. For simplicity, let’s say that my PIA is $3600. My spouse’s benefit based on her record is $1000. Does this mean that we will collect $5400/month ($3600 + 1/2 of $3600) since the $1800 spousal benefit is greater than the spouse’s PIA of $1000.
Josh great video. I’m younger then my wife by 4 years. Does my wife get my full 50% spousal support if she claims at 67?
To be clear, if the husband takes his benefit at 62 but the wife waits to her FRA would she still receive 50% of the husbands PIA or is that reduced as well?