Social Security Spousal Benefits In Retirement: What You Need to Know

Marriage is not only a partnership of love and companionship, but it also influences financial decisions, especially when planning for retirement.

One key aspect of retirement planning for married couples is understanding Social Security spousal benefits, which can provide a significant boost to retirement income.

In this guide, we’ll cover the essential details about spousal benefits, including eligibility, amounts, and when to claim.

What Is Social Security?

Social Security is a federal program that provides financial assistance to eligible workers and their families when they retire, become disabled, or pass away.

It is primarily funded through payroll taxes, with workers contributing 6.2% of their income (up to a wage base limit) and employers matching that amount.

For 2024, the wage base limit is $168,600. Self-employed individuals pay the full 12.4% payroll tax themselves.

More than 71 million Americans receive Social Security benefits, and in 2024, the program will distribute over $1 trillion in total.

How Do Spousal Benefits Work?

Spousal benefits allow you to collect up to 50% of your spouse’s Full Retirement Age (FRA) benefit amount, even if you have never worked or earned enough credits to qualify for your own Social Security benefits. To be eligible, you must meet certain requirements.

Who Qualifies for Spousal Benefits?

To qualify for Social Security spousal benefits, you must be:

• At least 62 years old, or
• Caring for a child under 16 or a child with a disability who is eligible for benefits.

If you’re eligible for your own Social Security benefits, the Social Security Administration (SSA) will pay your benefit first.

If your spousal benefit exceeds your own, you’ll receive an additional amount to bring your total benefit up to the higher amount.

Dual Entitlement: A Common Source of Confusion

If you qualify for both your own retirement benefits and spousal benefits, you may be dually entitled.

In this case, you’ll receive your retirement benefits first, and then the additional spousal payment will be added to bring your total benefits up to the spousal benefit level. The formula for calculating the spousal payment is:

(Half of the higher earner’s FRA benefit) – (Lower earner’s FRA benefit) = Additional spousal payment

How Much Will You Receive?

The amount of spousal benefits you receive depends on when you choose to claim.

Full Retirement Age

If you wait until your Full Retirement Age (FRA) (66 or 67, depending on your birth year), you will receive 50% of your spouse’s benefit. For example, if your spouse’s monthly benefit at FRA is $2,000, you would receive $1,000.

Early Retirement

Claiming spousal benefits before your FRA will result in reduced benefits. For instance, if you claim at age 62, you’ll receive only 32.5% of your spouse’s FRA benefit.

Claiming Age	Percentage of Spousal Benefit
Age 62	32.5%
FRA (66 or 67)	50%

Maximum Family Benefit

The maximum family benefit caps the total amount your family can receive, typically between 150% to 180% of the worker’s full benefit.

However, this does not affect spousal benefits individually unless multiple family members are claiming Social Security based on the same worker’s record.

Social Security and Government Pensions

If you receive a pension from government work where you didn’t pay Social Security taxes, your spousal benefit may be reduced by two-thirds of your government pension. This is known as the Government Pension Offset (GPO).

Spousal Benefits for Same-Sex Couples

The Social Security Administration (SSA) recognizes same-sex marriages in all states, which means same-sex couples are fully eligible for spousal benefits. Additionally, certain nonmarital relationships, such as domestic partnerships and civil unions, may also qualify, depending on state laws.

What About Ex-Spouses?

Your ex-spouse may also be entitled to collect Social Security based on your work record, provided they meet the following requirements:

• At least 62 years old,
• Not remarried,
• Your marriage lasted at least 10 years,
• The benefits they are entitled to on their own work record are less than what they would receive based on your record.

Importantly, your ex-spouse’s benefits do not affect the benefits you or your current spouse receive, as they are not included in the family maximum benefit.

Survivor Benefits for Spouses

If your spouse passes away, you may be eligible for survivor benefits, which can be as high as 100% of your deceased spouse’s Social Security benefit, provided you have reached Full Retirement Age (FRA).

If you are between 60 and FRA, the benefit will be reduced, ranging from 71.5% to 99% of your spouse’s benefit. Additionally, if you are disabled, you can begin receiving survivor benefits as early as age 50.

Survivor Benefits for Ex-Spouses

Surviving ex-spouses may also be eligible for survivor benefits, as long as they meet the same criteria as spousal benefits (e.g., marriage lasted at least 10 years, the ex-spouse is not remarried). These benefits are not affected by whether the ex-spouse had remarried after the divorce.

When Should You Claim Spousal Benefits?

The timing of your claim for spousal benefits can significantly impact how much you receive. Claiming early will reduce your benefits, while waiting until FRA ensures you receive the maximum possible amount.

• Claim at FRA to receive 50% of your spouse’s benefit.
• Claim earlier for a reduced amount.
• Consider your own retirement benefits and health when deciding when to claim.

Social Security spousal benefits can significantly enhance your retirement income, whether you have your own work record or not.

Understanding the rules surrounding spousal, survivor, and ex-spousal benefits can help you make informed decisions about when and how to claim.

By knowing the eligibility criteria, calculating the potential benefits, and timing your claim appropriately, you can maximize the financial support Social Security provides in retirement.

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