A common idea about Social Security is that it makes people save for their retirement. That is a view that is mostly right. In addition, employers are required to put money into the retirement accounts of their workers.
There is also a twist to Social Security that lets spouses get benefits based on their partners’ benefits. How do these benefits for spouses work with Social Security? All retired couples should know these four things.
These are the most common questions regarding spouse Social Security benefits in the US
When is it possible for a spouse to get spousal Social Security benefits?
Keep in mind that you can not start getting spousal Social Security benefits before your spouse does. On the other hand, you might be able to get a Social Security spousal benefit before your spouse does. Your spouse may also be able to get disability or retirement payments from Social Security.
It matters how old you are too. Spousal benefits can only be claimed by people who are at least 62 years old. This is also the youngest age at which you can get retirement benefits.
Still, there is one exception to this rule that everyone who is a beneficiary should know about. You can get spousal benefits at any age if you are taking care of a child younger than sixteen or if your spouse has a disabled child who is eligible for Social Security benefits.
What is the expected Social Security benefit amount for spouses?
How much your spouse gets from Social Security depends on how much they are eligible for at full retirement age. You can get up to half of your spouse’s benefit if you wait until you reach full retirement age before you start getting them.
There is, however, a catch. The Social Security Administration (SSA) looks at how much spousal benefits you could get based on your spouse’s benefits and how much retirement benefits you would get based on your work record. Accordingly, you will get the bigger of the two amounts in this case.
Do not forget that you need to file for both your retirement benefit and your spousal benefit at the same time. People do this when they “deem file.” It became law in January 2016 so that people could not get more than one benefit at the same time to make more money. Is it possible to get a benefit for your spouse before you reach retirement age?
You can, of course. You will get 1% less each month, though, for every month you get benefits before your normal retirement age, up to 36 months. Reducing your monthly payment by 5.12% will happen if you retire more than 36 months before your full retirement age.
After reaching full retirement age, would it make sense for couples to postpone spousal benefit claims?
If you wait until after the full retirement age to apply for Social Security benefits, your spouse will get more money in retirement. People born in 1943 or later get 8% more in retirement benefits every year if they wait to claim their benefits until they are 70 years old. For many, waiting can lead to a rise of up to 24%, which is a good return on investment.
Does waiting to claim spousal benefits after full retirement age help spouses? Too bad, no. Spousal benefits are half of what your spouse would get at full retirement age. That is the most you can get.
Does a divorced spouse have the right to receive spousal benefits?
You might be able to get spousal Social Security benefits even if you are divorced if your ex-spouse has worked in the past. One catch is that you must have been married for at least ten years. According to the rules of the Social Security Administration, people who are in “some valid non-marital legal relationships” can also get spousal benefits.