Do you qualify for Social Security spousal benefits? 3 things to know before applying

Social Security income is an essential part of most retirement plans, but spousal benefits don’t get enough attention. Many people don’t even realize they can claim retirement income based on their spouse’s earnings, and these cash flows can be significant for households where people are no longer in the workforce. It’s a good idea to check your eligibility for this program on the Social Security Administration’s website, and you should consider these three key points before applying.

1. You can receive up to half of your spouse’s full pension

Spousal benefits can be significant, and eligible beneficiaries can claim up to half of a spouse’s full pension. The average monthly Social Security income is $1,884 for someone at full retirement age (FRA) right now, so many retiree households could be eligible for more than $900 in additional monthly benefits. That spousal benefit number is nearly $2,000 per month for families who are entitled to the maximum benefit with a full retirement age of 67. Financial planners often recommend replacing around 80% of your pre-retirement income to maintain your lifestyle, so this extra income can fill a significant gap for many families.

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To be eligible for spousal benefits, you must be at least 62 years old and have been married for at least one year. The program also applies to ex-spouses who have not remarried. The age requirement may be waived for persons with a qualifying disability or a dependent child. You also cannot claim spousal benefits unless your spouse has elected to receive Social Security retirement benefits. This is particularly relevant for households with one primary income who intend to delay pension and social security income.

2. Spousal benefits cannot be combined

Spousal benefits are not intended to dramatically increase the Social Security income of people who have their own work histories. In most cases, the amount of the spousal benefit calculated is reduced by the amount you would receive in your own pension benefits. If you apply for spousal benefits, you are “deemed” to have applied for your own, preventing people from exploiting any kind of time loop.

What this means is that you can’t “stack” spousal benefits on top of your own Social Security income and get two checks. Furthermore, you cannot elect to receive spousal benefits at age 62, then receive your own higher FRA benefits later.

Simply put, if you’re already entitled to significant retirement income from Social Security, don’t expect to get much more from spousal benefits.

3. Your age affects the amount you can receive

Spousal benefits work similarly to pension benefits in that you can receive payments before full retirement age, but this results in less income each month. In the case of spousal benefits, that discount can be as high as 35%. These are based on the value of the primary insurance at the spouse’s full retirement age. If you’re 62 and your partner receives Social Security income, you can get a higher spousal benefit by waiting until your own FRA claims.

There is a key difference to consider between spousal benefits and regular benefits. Social Security retirement benefits continue to grow between FRA and age 70, so you can claim more than your primary insurance amount from your own personal benefit. There is no such benefit available with spousal benefits, so there is no additional incentive to defer income beyond the FRA.

It is important to think about the effect of age on benefits, especially for couples with a relatively large age difference. The primary beneficiary could maximize their income by deferring until age 70, but the spouse could still face a reduced payment if they are under 67. You’ll need to weigh the effect of cumulative income earlier versus larger monthly checks in the future. .