Social Security Spousal Benefits: Marriage affects not only emotional and familial bonds but also financial decisions, especially when it comes to retirement planning.
Social Security spousal benefits are an essential part of this financial equation, offering support for spouses, ex-spouses, and even widows. Understanding these benefits can make a significant difference in maximizing your retirement income.
What is Social Security?
Social Security is a federal insurance program that replaces a portion of income for retired individuals, those with disabilities, and surviving family members after a worker’s death. Funded by payroll taxes, it covers millions of Americans each year.
In 2024, for example, over 71 million Americans will receive more than $1 trillion in benefits. The program is financed by a 12.4% payroll tax, split between employees and employers (6.2% each). There’s also a Medicare tax of 1.45% each. For 2024, income up to $168,600 is subject to Social Security taxes.
Spousal Benefits Explained
If you’re married, you may be eligible to collect part of your spouse’s Social Security, even if you’ve never worked. Spousal benefits offer financial support based on your partner’s earnings record, which can be especially useful for households where one spouse has little or no work history.
To qualify for spousal benefits, you must:
- Be at least 62 years old, or
- Be caring for a child under 16 or a child with a disability who is eligible for Social Security.
Dual Entitlement
If you are entitled to your own Social Security benefits, the Social Security Administration (SSA) will first pay your own benefits.
If your spousal benefit (up to 50% of your spouse’s full retirement age benefit) exceeds your own benefit, you will receive an additional amount to make up the difference.
Here’s a simple formula to calculate the additional spousal payment:
- (Half of the higher earner’s benefit at full retirement age) – (Lower earner’s full retirement age benefit) = Additional spousal payment.
When to Claim Spousal Benefits
Claiming spousal benefits early (at age 62) reduces the amount you’ll receive, starting at 32.5% of your spouse’s benefit. Waiting until full retirement age (66 or 67, depending on your birth year) will give you the full 50% of your spouse’s benefit. These spousal benefits will not reduce your partner’s benefits.
Special Cases: Ex-Spouses and Widows
Spousal Benefits for Ex-Spouses
Even if you are divorced, you may still be eligible for spousal benefits. To qualify, the following conditions must be met:
- Your marriage lasted at least 10 years.
- You are 62 or older and unmarried.
- The benefits you are entitled to based on your own work are less than the spousal benefits you would receive based on your ex-spouse’s earnings.
Your ex-spouse’s benefits do not impact the total family benefits you and your current spouse receive.
Survivor Benefits for Widows and Widowers
If your spouse dies, you may be eligible for survivor benefits. Surviving spouses who have reached full retirement age can receive 100% of their deceased spouse’s benefits.
Reduced survivor benefits are available as early as age 60, starting at 71.5% of the deceased spouse’s benefit.
Even if a spouse dies before retirement, survivor benefits can be based on the deceased’s Social Security credits.
A person needs 40 credits (about 10 years of work) to qualify for their own benefits, but younger deceased workers may need fewer credits for their families to qualify for survivor benefits.
If you were receiving spousal benefits and your spouse dies, your benefits will automatically convert to survivor benefits, providing you with 100% of your spouse’s benefit.
Same-Sex Couples
The SSA recognizes same-sex marriages across all states, allowing same-sex couples to receive spousal benefits. Additionally, certain non-marital legal relationships, like domestic partnerships and civil unions, are recognized for these purposes.
Limits and Reductions
Maximum Family Benefit
There is a limit on the total amount that can be paid to a family through Social Security, which is generally between 150% and 180% of the worker’s full retirement benefit.
Government Pension Offset
If you receive a pension from work not covered by Social Security (such as some federal, state, or local government jobs), your spousal benefits will be reduced by two-thirds of your pension amount.
Social Security spousal benefits can be a valuable source of income for couples, including divorced or widowed individuals.
Understanding when to claim these benefits and how they work alongside your own Social Security can help you maximize your retirement income.
Whether you are married, divorced, or widowed, it’s essential to know how these benefits apply to you to make the most of your Social Security retirement planning.
FAQs
Can I receive spousal benefits if I’ve never worked?
Yes, as long as you meet the eligibility criteria, you can receive up to 50% of your spouse’s Social Security benefit.
How much will I receive in spousal benefits if I claim at 62?
At 62, you’ll receive about 32.5% of your spouse’s benefit, instead of the full 50%.
Do spousal benefits affect my spouse’s Social Security payments?
No, claiming spousal benefits does not reduce the benefits your spouse receives.
Can my ex-spouse receive Social Security based on my earnings?
Yes, if the marriage lasted at least 10 years and other conditions are met.
What happens to my spousal benefits if my spouse dies?
Your spousal benefits will convert to survivor benefits, allowing you to receive 100% of your deceased spouse’s benefits.
