Spousal benefits can be a major financial crutch for couples, especially when one spouse has a limited work history — or none at all.
There are many great things about Social Security benefits, including the fact they keep millions of retirees financially stable by providing steady income in their golden years. It’s not a flawless system, but it would be hard to argue against how valuable it has been for many Americans.
And you don’t necessarily have to work to receive benefits. The program offers spousal benefits to cover cases when one spouse doesn’t work outside the home or makes significantly less than the main breadwinner. Both situations are common, so spousal benefits are crucial to many households.
If you’re considering applying for spousal benefits, here are three things you should know beforehand.
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1. Three criteria must be met for spousal benefits
To start, two things must be true for you to qualify for Social Security spousal benefits: You must be married for at least one year, and your spouse must currently receive retirement benefits. To go with that, one of the following must also apply:
- You’re at least 62 years old.
- You’re caring for a child under 16.
- You’re caring for a child with a disability that began before 22.
Even if you meet the one-year marriage requirement and your spouse is collecting benefits, you won’t be eligible to receive Social Security spousal benefits if at least one of the three bulleted criteria above isn’t also met.
If you’re divorced, you could be eligible to claim spousal benefits based on your former spouse’s work history as long as you were married for at least 10 years.
If there’s an age gap between you and your spouse, or if your spouse prefers to claim benefits later, you can still claim benefits based on your personal work history starting at age 62 and then transition to spousal benefits (assuming they’re higher) once your partner starts collecting Social Security themselves.
2. Your monthly benefit depends on your spouse’s primary insurance amount
Social Security calculates retired worker benefit amounts using a formula that factors in the 35 years when someone’s earnings were the highest. At full retirement age, one is eligible to receive their primary insurance amount (PIA). Social Security spousal benefits are based on the PIA of the primary earning spouse. You can receive up to 50% of your spouse’s PIA assuming you’ve reached full retirement age. For example, if your spouse has a PIA of $2,000, you can collect a maximum of $1,000.
Below is a guide on Social Security’s full retirement ages by birth year:
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3. Your age when you claim spousal benefits affects how much you receive
Similar to retired worker benefits, you don’t have to wait until reaching full retirement age to claim spousal benefits. You can claim as early as 62, but doing so will reduce your monthly benefit depending on how far away you are from full retirement age.
Spousal benefits are reduced by 25/36 of 1% for each month before your full retirement age, up to 36 months. Each additional month reduces your benefits by 5/12 of 1%.
Under this rule, if your full retirement age is 67 and you claim spousal benefits at 62, your monthly check will be reduced by 35%. If you claim at 64, it will be reduced by 25%. The penalty for claiming spousal benefits early is higher than for retired workers benefits.
Another key difference between the two kinds of benefits is that spousal benefits don’t increase if you claim after your full retirement age. Retired worker benefits, on the other hand, increase 2/3 of 1% for each month until you reach 70. So, if you’re planning to claim spousal benefits and eligible to do so, there’s no advantage to delay past your full retirement age.
