Social Security Benefits Revealed: Social Security benefits are subject to a number of caveats and nuances.
In many cases, the monthly Social Security benefit you can claim based on a former spouse’s work history doubles when they die, which can be a useful quirk for divorced spouses.
A certified financial planner and Social Security expert, Mary Beth Franklin, spoke at Financial Advisor Magazine’s Invest in Women conference in West Palm Beach, Florida, recently.
For married couples, the same calculation assumes that the first spouse to die had a larger Social Security retirement benefit than the survivor.
According to financial planners, women in heterosexual couples tend to benefit most from these Social Security rules, since they live longer and retire with less wealth.
“Social Security is one of the most popular benefits the government offers,” said Natalie Colley, a CFP based in New York and senior lead advisor at Francis Financial. “And it’s a lifetime annuity. It’s one of the best [financial] protections anyone has against old age.”
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Social Security Benefits Revealed: Social Security rules for married, and divorced spouses
Social Security benefits are determined by the federal government based on an individual’s age and earnings history.
At full retirement age, the lower earner can receive a benefit worth up to 50% of the benefit to which their spouse is entitled.
According to the Social Security Administration, Sandy qualifies for a monthly retirement benefit of $1,000 based on her earnings record. The spouse benefit is $1,250. At Sandy’s full retirement age, she will receive $1,000 plus $250 from her spouse’s benefit, totaling $1,250.
For divorced couples, an ex is entitled to up to half of their ex-spouse’s Social Security benefit when both are alive.
To qualify, the couple must have been married for 10 years or more before divorcing, and the claimant must not have remarried. (Your ex is also required to qualify for benefits, which means he or she must also be at least 62).
“There must be at least a decade between ‘I do’ and ‘I don’t,’” Franklin said.
Moreover, the couple must have been divorced for at least two years.
Using an ex-spouse’s earnings record to claim benefits does not reduce or affect that ex’s benefits, Colley said. The ex is never notified about a claim by the Social Security Administration.
Keeping an ex-spouse’s Social Security number, as well as the marriage and divorce certificates, can streamline a future claim.
Then, “it’s really a very seamless process,” Colley said.
What happens to benefits when an ex-spouse dies
The formula for calculating benefits changes when a former spouse dies.
A surviving ex-spouse (or widow) can receive up to 100% of the decedent’s benefit, instead of 50%.
SSA says remarrying after 60 will not affect your eligibility for survivors benefits. Remarrying before that disqualifies you.
