Spousal benefits are worth up to 50% of the higher-earning spouse’s benefit at full retirement age.
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When you apply for Social securityyour spouse becomes eligible for payments known as spousal benefits. However, they will not receive these payments automatically. Instead, they must apply to the Social Security Administration, whether or not they receive their own pension.
A financial advisor can help you plan for Social Security and create a comprehensive retirement income plan. Connect with a fiduciary advisor.
For example, imagine a man gets $3,000 on his own full retirement age. His wife can collect up to $1,500 in spousal benefits based on his earnings history, but she must submit them. Here’s a closer look at how spousal benefits work.
Spousal benefits are a form of social security payments for spouses of beneficiaries. If you are married or have been married, you can claim benefits worth up to 50% of your spouse’s full pension. For most people, this means the benefits they would receive at age 67. These payments are not deducted from your spouse’s payments and your spouse cannot change your right to receive them.
To claim spousal benefits, the SSA requires the following:
If both of these criteria are met, the secondary spouse can apply for spousal benefits. However, there are two exceptions to these rules:
If the spouses have been divorced for more than two years, the secondary spouse can claim spousal benefits regardless of the pension status of the primary spouse
If the secondary spouse is caring for a child who is under the age of 16 or who is receiving disability benefits through SSA. can apply for spousal benefits before the age of 62
You can also apply for a pension based on your ex-spouse’s benefits if you were married for at least 10 years and you didn’t remarry. This is not affected by the primary spouse’s marital status, and in some situations you can claim benefits before the primary spouse retires.
Whether it’s guidance on spousal benefits or advice on how and when to withdraw funds from retirement accounts, financial advisor can help you plan for retirement.
A woman watches as her husband applies for spousal benefits from the Social Security Administration.
Spousal benefits are capped at 50% of the higher-earning spouse’s “primary sum insured” (PIA) – their full retirement age benefit. For example, if you receive $3,000 a month in Social Security, your spouse can receive up to $1,500 a month in spousal benefits if they wait until their full retirement age.
While spouses are eligible to claim spousal benefits as early as age 62, it will reduce their lifetime benefits by a certain percentage for each month before age 67. Applying for spousal benefits at age 62 can result in a benefit worth only 32.5% of the higher-earning spouse’s primary insurance amount. That is, if you claim spousal benefits at age 62, you would receive $32.50 for every $100 of the primary spouse’s PIA.
Unfortunately, delaying spousal benefits past full retirement age does not have the opposite effect. Spouse benefits do not increase if you claim them after age 67.
The SSA automatically performs this calculation when you apply for benefits. If you are eligible for your own pensions as well as spousal benefits, the SSA will issue a larger payment. If you’ve already started receiving benefits based on your own earnings history, you can switch payments to spousal benefits after your spouse retires. This is usually done if your spousal benefits exceed your own pensions.
And if you need help calculating your Social Security benefits and deciding when to claim them, talk to financial advisor.
Once eligible for Social Security benefits, the recipient must file a claim for those benefits, regardless of whether or not they started receiving their own retirement benefits.
To understand how this works, let’s look at our hypothetical situation from above. Imagine you expect to collect $3,000 a month from Social Security at full retirement age.
In all cases, your wife’s benefits would be based on your primary sum assured of $3,000 as well as her age. For example, if you retire at age 67, here’s what her spousal benefits would be based on the age at which she decided to claim them:
62: $975 per month ($3000 * 0.325)
67: $1,500 per month ($3,000 * 0.5)
70: $1,500 per month ($3,000 * 0.5)
As you can see, claiming spousal benefits at age 62 would leave her with only $975 per month, which is 32.5% of your primary insurance amount. Once she reaches her full retirement age, she becomes eligible for a maximum spousal benefit of $1,500 per month. Before applying for social security, consider talking to a financial planner to discuss how your benefits will affect your pension plan.
But what if your wife also has her own pension? How would spousal benefits affect the amount she ultimately collects?
Let’s say, for example, that your wife is eligible for a $1,200 pension based on her earnings history. Since her own pension is less than her spouse’s, SSA would pay the latter. And if he were entitled to $1,600 based on his own work history, the SSA would simply pay that amount.
Spousal benefits are Social Security payments based on the earnings records of the higher-earning spouse. A spouse can receive up to 50% of their spouse’s Social Security benefits at full retirement age, but these payments are not automatically issued. Like all benefits, you must file a claim with the SSA to receive them.
Social Security plays a key role in many Americans’ retirement plans. In fact, two people collecting the maximum benefit in 2024 could bring in a household income of almost $117,000. With that in mind, here they are some strategies for maximizing social security for you and your spouse.
A financial advisor can help you create a Social Security strategy and create a comprehensive retirement plan. Finding a financial advisor it doesn’t have to be difficult. SmartAsset’s free tool connects you with up to three trusted financial advisors serving your area, and you can have a free introductory conversation with your advisors to decide which one is right for you. If you are ready find a counselor who can help you reach your financial goals, get started now.
Keep an emergency fund handy in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t exposed to significant fluctuations like the stock market. The trade-off is that the value of current money can be reduced by inflation. But a high interest account allows you to earn compound interest. Compare the savings accounts of these banks.
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