Millions of people across the country depend on Social Security to make ends meet. Almost 78 million Americans currently benefit from the program and depend on it to keep their finances stable when they retire, become disabled, or lose a family member.
A lot of people know the basics about Social Security, but beneficiaries should also know a few less well-known facts to get the most out of their benefits.
You can be eligible for spousal or divorce benefits
The most common type of Social Security is retirement benefits, which most people can get after working and paying taxes for at least 10 years. You may be able to get spousal or divorce benefits, though, if you are married or divorced.
People who are married to someone who is eligible for either retirement or disability benefits can get spousal benefits. The most your spouse can get as a spousal benefit is half of what they could get at full retirement age (FRA).
To get divorce benefits, you can not be married right now, but your ex-spouse can be. Also, you and your ex-spouse must have been married for at least 10 years. Like with spousal benefits, the most you can get is half of your ex-spouse’s benefit at their FRA.
In both situations, you can get extra retirement benefits even if you already qualify for your own, but you will only get the bigger amount.
Let us say your benefit is $800 a month and your spouse’s benefit is $2,000 a month. Your spousal benefit would be $1,000 a month. If this were to happen, you would get $1,000 a month, not $1,800 all together.
You can reverse your claim decision
The amount of Social Security benefits you get usually stays the same for life once you start getting them. There are, however, ways to change your mind if you start to doubt your decision to claim.
A survey by Nationwide found that surprisingly, about 70% of Americans do not know about this option. It can be very important if you later change your mind about when you started claiming.
Within the first year, you can withdraw your application, but you will have to pay back all the benefits you have already gotten. You can apply again whenever you want after this time.
You can still get help if you miss the 12-month period or can not pay back the benefits: your benefits can be suspended. You do not have to make any more payments until you turn 70 years old after you reach your FRA.
When you start getting benefits again, the Social Security Administration will recalculate your payment, which will make your monthly amount bigger. It is good to know that you can change your claims, even if you do not need to. You do not have to stick with a claim you made early if you later change your mind.
Your Social Security retirement benefits depend on how long you worked for
How much Social Security you get is based on three main things: how much you earned, when you started claiming, and how long you worked. The first two are pretty well known, but the length of your career is often forgotten.
In fact, Nationwide says that more than 60% of U.S. adults do not know how it affects them. To figure out your benefit, the Social Security Administration takes the average of your 35 highest-paying years and adjusts it for inflation. When you file at your FRA, you will get this amount.
There will be less of a benefit for you if you have not worked in 35 years. Any years without earnings will be counted as zeros. Make sure you have at least 35 years of income before you apply for Social Security.
This way, your benefits will not be cut off without warning. Knowing these less well-known rules about Social Security and how it works can help you make smarter decisions and get ready for a more financially secure retirement.