With much of a person’s Social Security benefit depending on their earnings record, spousal benefits allow people with shorter or spotty work histories to still reap some benefits from the program.
By claiming Social Security spousal benefits, you’re eligible to receive up to 50% of the primary claiming spouse’s primary insurance amount (their monthly benefit when claiming at their full retirement age). It might not be the best route for all married retirees, but it’s a strategy worth considering.
If you find yourself debating whether to go the spousal benefits route, below are three things to know beforehand.
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1. Who is eligible to receive spousal benefits?
Three main boxes must be checked to be eligible for Social Security spousal benefits:
- The primary claiming spouse must currently be receiving benefits.
- You must have been married for at least one year.
- You must be at least 62 years old, caring for a child under age 16, or caring for a child with a disability that began before age 22.
If all three conditions apply, you’re eligible for spousal benefits. Anything short of all three would make you ineligible.
2. How claiming spousal benefits early affects your monthly benefit
As with standard benefits, the Social Security Administration will reduce your monthly spousal benefit based on when you claim before your full retirement age. The difference is by how much.
Claiming standard benefits before your full retirement age reduces them by 5/9 of 1% monthly for the first 36 months. Claiming spousal benefits early reduces them by 25/36 of 1% for the first 36 months, working out to around a 8.33% reduction annually. For every additional month you claim benefits before your full retirement age, both standard and spousal benefits are further reduced by 5/12 of 1%.
If your full retirement age is 67 — which is the case for anyone born in 1960 or later — and you claim spousal benefits at 64, your benefit will be reduced by 25% (20% for standard benefits). If you claim spousal benefits at 62, they’ll be reduced by 35% (30% for standard benefits). Unlike standard benefits, your spousal benefits don’t receive a boost if you delay them past your full retirement age.
3. Divorcees can also be eligible for spousal benefits
Divorcees can also claim Social Security spousal benefits as long as the following is true:
- You were married for at least 10 years.
- You have not remarried.
- You have been divorced for at least two consecutive years (only applies if your ex-spouse is eligible but hasn’t claimed benefits yet)
While the primary claiming spouse needs to currently be receiving benefits to be eligible for standard spousal benefits, the same doesn’t apply to divorcee claims. You can claim them at any time, assuming you’re at least 62 years old and check the above boxes.