Social Security Spousal Benefits: 3 Things All Retired Couples Should Know

Married couples who want to maximize their Social Security benefits often must consider the value of spousal benefits in their claim decision. Spousal benefits can provide a boost to your overall household income in retirement, but the program’s rules and complications add some important considerations for when each partner should claim Social Security.

Still, if you want to get the most out of Social Security spousal benefits, here are three things all retired couples should know.

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1. Who is eligible for spousal benefits?

First things first. You will only be eligible for spousal benefits if you are (or were) married. Civil unions and domestic partnerships (non-marital legal relationships) may also count for some same-sex couples.

In addition, there are also some additional requirements. The spouse beneficiary must be:

• At least 62 or have a qualifying child in their care. An eligible child is a spouse’s child under the age of 16 or receiving Social Security disability benefits.
• Married for at least one year, unless you are the parent of your spouse’s child. Alternatively, a divorced spouse must have been married for at least 10 years.
• I do not receive a higher social security pension benefit based on my own work.

As long as you meet all of the criteria above, you can apply for spousal benefits.

2. How big can your benefit be?

The simple answer is that spouses are eligible to receive up to 50% of their spouse’s primary sum assured. The primary sum assured is the benefit a worker receives if they start receiving benefits at full retirement age.

The full retirement age currently varies between 66 and 67. Anyone born between 1943 and 1954 reached full retirement age at 66. The age increases by two months for each year you were born after 1954, up to 67 for those born in 1960 or later.

However, you will receive a maximum of 50% of your partner’s PIA if you wait until retirement age. If you apply early, you will receive less. It is important that the spousal benefit does not depend on when your spouse claims his benefit. Additionally, there is no late retirement credit for waiting past full retirement age to claim spousal benefits.

Here’s how early claiming affects the spousal benefit for someone with full retirement age of 67.

Table by author. Calculations by author.

As you can see, claiming early can seriously diminish the monthly benefit you receive. The effect of claiming spousal benefits early is even greater than the effect of claiming your own benefit early.

Note that in most cases you cannot claim the spousal benefit early and then switch to the personal benefit at retirement age or later. When you claim one benefit, you claim both and the government sends you the highest benefit you’re eligible for.

3. There are special cases to consider

There are three special cases to consider when it comes to spousal benefits.

The first case is when you are divorced. If you’ve been married to someone for at least 10 years, you’re eligible to claim spousal benefits based on his or her earnings record, as long as you don’t remarry before age 60. Additionally, divorced spouses do not have to wait for their ex to apply for Social Security before becoming eligible for spousal benefits.

The second case is if you are caring for your spouse’s eligible child. In this case, you can apply as soon as your spouse retires without a reduced penalty, even if you are under 62. Additionally, you can claim spousal benefits in this case without also claiming your own benefit. This gives you the ability to allow your personal benefit to grow over time and claim it later.

The final case is for widows. If your spouse has passed, you may be eligible for survivor benefits instead of spousal benefits. Survivor benefits can be worth as much as the spouse received, or would have received, in social security.

Survivor benefits can be claimed from as early as age 60, but will face a reduction in the full amount of benefit you would receive at full retirement age. However, they are also exempt from the rule that requires you to claim both spousal benefits and personal benefits at the same time. As such, you can claim one benefit while letting the other grow and switch later.

All of these complications can throw another wrench into what is already a tough financial decision. Be sure to discuss claim strategies with your spouse and possibly consult a financial advisor to determine the best strategy for your household together.