Key Information on Social Security Benefits for Retired Couples: Spousal Social Security benefits are frequently a subject of ambiguity. According to a recent survey, nearly 30% of Americans approaching retirement are unaware that spouses can qualify for Social Security benefits based on the employment history of a companion. Nearly half of Americans nearing retirement are unaware that divorced spouses may continue to collect Social Security benefits using their ex-spouse’s employment record, according to the same survey.
The aforementioned knowledge deficits may present challenges, given that Social Security generally serves as a significant contributor to retirement income. Four things that retired couples should be aware of regarding Social Security benefits for spouses are listed below.
Beneficiaries set to receive Social Security payments on February 28th
1. Spouses are eligible to file Social Security claims using their partner’s employment history.
Beneficiaries of Social Security retirement assistance are retired laborers and their spouses, including those without a work history. In particular, married individuals who meet the subsequent criteria may be eligible to receive Social Security benefits on the employment history of a retired spouse.
- The spouse is required to be a minimum of 62 years old.
- The companion must be enrolled in retirement benefits.
Certain spouses will qualify for Social Security benefits in both their capacity as retired workers and as spouses. Upon filing for Social Security, they will be granted the larger benefit automatically.
2. Spouses can maximize their retirement benefits by filing at the maximum age of retirement.
The retired worker’s main insurance amount (PIA) and the spouse’s age of benefit claim determine spousal Social Security benefits. PIA is the benefit an employee would receive if they registered for Social Security at the maximum retirement age.
If the spouse starts Social Security at the retired worker’s full retirement age, the spousal benefit is half the PIA. Spouses who file before full retirement age receive less than 50% of the retired employee’s PIA. The reduction depends on months before early benefits start. However, it would be worse at 62, the earliest age to file a claim.
One perhaps confusing point. Delayed retirement credits can boost Social Security benefits for retirees who start receiving benefits after retirement age. Deferred retirement credits are not accruable by spouses, so starting spousal benefits after full retirement age is pointless.
The following figure shows the spousal benefit as a percentage of the retired worker’s PIA for persons born in 1960 or later, who retire at 67.
The Social Security Administration is the data repository. Please be advised that all percentages have been rounded to the nearest hundredth of a percent.
3. A divorced spouse is still eligible to receive Social Security benefits.
Subject to the following conditions, divorced spouses may continue to be eligible for Social Security benefits using their ex-spouse’s employment history.
- The divorced individual has reached the age of 62 or older.
- There were at least ten years in the marriage.
- The former spouse has not remarried following the divorce.
Three potential sources of confusion exist. Firstly, it is generally not possible for spouses to claim benefits from a partner’s employment record unless that individual is also entitled to retirement benefits. This rule, however, does not apply to spousal benefits for a divorced spouse.
Second, even if their ex-spouse remarries, divorced spouses are still eligible to receive Social Security benefits (assuming the aforementioned three conditions are met). Only the marital status of the alleging spouse is a determining factor in eligibility.
Thirdly, some divorced spouses erroneously assume that their ex-partner’s benefit will be affected if they file for Social Security benefits using their ex-partner’s employment record. Some divorcing spouses are concerned that their ex-spouse will discover their application for spousal benefits. Both are untrue. No changes will be made to the ex-partner’s benefit, and they will not receive any notification if the spouse files for Social Security benefits using their employment history.
4. Spouses are not permitted to defer the retirement benefit of one spouse.
Certain spouses will qualify for benefits as both retired workers and spouses, as previously stated. Spouses cannot claim one Social Security benefit while delaying another under such circumstances. Specifically, they are not permitted to defer their retired worker benefits to receive a larger payment while also receiving spousal benefits from their retired partner’s employment history.
Spouses automatically apply for retired-worker benefits and spousal benefits when they register for Social Security; the larger of the two payments is awarded to them. This rule, however, applies solely to retirement benefits and not to survivor benefits. By deferring their retired worker benefit and collecting survivor’s benefits, a widow or widower could accrue delayed retirement credits.
The $22,924 Social Security benefit that the majority of retirees fail to recognize
You, like the majority of Americans, have been delaying your retirement savings for several years or longer. However, there are a few obscure “Social Security secrets” that may increase your retirement income. To illustrate, a solitary effortless maneuver has the potential to yield an annual increase of $22,924. We believe that once you have mastered the art of maximizing your Social Security benefits, you will be able to retire with the assurance and tranquility that we all seek.
