You spend your entire life with your partner, sharing dreams, sacrifices, and common goals. The purest collaboration. When it comes time to retire, Social Security provides financial support not only for you, but also for the person who has been your partner along the way.
However, many couples are unaware of how spousal benefits work and end up leaving money on the table that belongs to them. We will help you understand how to strategically claim these benefits and ensure a more stable future for both of you!
Who can claim benefits as a spouse?
First and foremost, you should be aware that you will be unable to claim these benefits until your partner receives them; however, your partner does not need to have reached full retirement age before you can claim this payment.
This Social Security benefit (as a spouse) has several key requirements that we detail below:
- You can claim them from age 62. However, if you have a child under 16 or a disabled person in your care, you could do so earlier.
- You can claim benefits while your spouse receives his or her own retirement or disability benefits.
Can a divorced spouse claim this benefit?
It is an exception and the answer is yes, although it is important to note that it is necessary that the couple was married for at least 10 years, so they can also qualify (as long as they meet the rest of the established requirements).
How much money can you receive with this benefit?
The amount will be based on the amount of benefits the spouse is entitled to when they reach full retirement age, so as a spouse, you can claim 50% of their benefits. If you decide to file a claim earlier, the Social Security Administration (SSA) will calculate how much you are entitled to.
They will compare the benefits you would receive based on your own work history to those you could receive as a spouse, and they will always assign you the greater amount.
Of course, filing for spousal benefits requires you to also file for your own retirement benefits. This is referred to as “presumptive filing,” a rule enacted in 2016 to prevent people from maximizing their income by strategically choosing when to file for each benefit.
Here’s an example: If you claim three years (36 months) early, your benefits will be reduced by up to 25%. And so on, for the years preceding FRA. That is why it is critical to make an informed retirement decision and, most importantly, to have a financial plan in place so you know what is best for you.
Is it worth delaying your claim?
While this is a very personal decision for each person, delaying retirement benefits (until age 70) can increase future payments by up to 8% per year. If you choose to wait past the full retirement age, spousal benefits will not increase. This means that you should file your claim as soon as you can afford to do so.
Social Security spousal benefits can provide significant relief for couples, but it is critical to make informed decisions.
So we can’t tell you which option is best for you because it’s something you have to decide for yourself (because each person’s longevity, health status, and immediate financial needs vary). If you have any questions about the best strategy for your specific situation, we recommend that you consult with a financial advisor.
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