The conventional perception of Social Security is that it forces people to save for retirement. That’s a mostly true assessment. Additionally, businesses are obligated to contribute to their employees’ retirement accounts.
Furthermore, there is a twist in Social Security that allows spouses to obtain benefits based on those of their spouses. How do the Social Security benefits for spouses work? All retired couples should be aware of these four points.
These are the most common questions regarding spouse Social Security benefits in the US
When is it possible for a spouse to get spousal Social Security benefits?
It is crucial to understand that you cannot obtain spousal Social Security payments before your husband. However, you may be eligible to receive a spousal payment from Social Security before your spouse reaches full retirement age. Additionally, your spouse may be eligible for Social Security disability or retirement benefits.
Your age is also crucial. Spousal benefits are only available if you are at least 62 years old, which is the earliest age at which you can get retirement payments. However, there is one exception to this rule that all recipients should be aware of. You can apply for spousal benefits at any age if you are caring for a child under the age of sixteen or if your spouse has a disabled child eligible for Social Security payments.
What is the expected Social Security benefit amount for spouses?
The amount of your spouse’s Social Security payout is determined by his or her full retirement age. If you wait until you reach full retirement age to claim spousal benefits, you may be eligible for up to half of your spouse’s payments. But there’s a catch.
The Social Security Administration (SSA) analyzes the amount of retirement benefits you would receive based on your work history with the amount of spousal benefits you could receive depending on your spouse’s benefits. Thus, in these cases, you will receive the greater of the two amounts.
Remember to file for both your spousal and retirement benefits at the same time. This is called “deemed filing.” It went into effect in January 2016 to prohibit people from filing for various benefits simultaneously in order to enhance their income. Is it possible to obtain spousal benefits before you reach retirement age?
Yes, you can. However, for each month you get benefits before your normal retirement age, up to 36 months, your payments will be cut by 25/36, or 1%. If you retire more than 36 months before your full retirement age, you will receive a monthly reduction of 5/12ths of one percent.
After reaching full retirement age, would it make sense for couples to postpone spousal benefit claims?
Waiting until after the full retirement age to apply for Social Security benefits permits your spouse to receive additional retirement income. Delaying benefit claims until age 70 raises retirement payments for anyone born in 1943 or later by 8% per year. For many, waiting can result in a maximum gain of 24%, which is a fair return on investment.
Does postponing spousal benefit claims after reaching full retirement age help spouses? Unfortunately, no. The maximum amount of spousal benefits you are eligible for is half of what your husband would receive at full retirement age.
Does a divorced spouse have the right to receive spousal benefits?
Depending on your ex-spouse’s employment history, you may be eligible for spousal Social Security payments even if you are divorced. The restriction is that you must have been married for at least ten years. Furthermore, according to Social Security Administration standards, “some valid non-marital legal relationships” may qualify for spousal benefits.
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