Avoiding Potential Blunders in Social Security Claims Post-Divorce.
Retirement income can be boosted significantly for many elderly individuals through the Social Security system, even if their personal retirement savings aren't substantial. By working and contributing to Social Security throughout their lives, individuals become entitled to a monthly benefit once they reach 62 years of age. In fact, even if you've never worked yourself, but your spouse has, you can still claim Social Security benefits as a spousal benefit.
Even for those who are divorced, spousal benefits from Social Security can be an option. In certain cases, this could lead to a higher monthly income than what a person would receive based on their own earnings record.
The spousal benefit can be worth up to half of what a current or former spouse is eligible to collect each month. For instance, if someone is entitled to $3,200 a month, their ex-spouse could potentially collect up to $1,600 through spousal benefits.
Some may be hesitant to claim spousal benefits if they're no longer married to the person whose record they'd be filing against. However, it's essential to note that this action does not impact the amount of Social Security benefits your ex and, if applicable, your ex's current spouse are eligible to receive. In fact, filing for spousal benefits as a divorced individual could result in a higher monthly income for the person.
Let's say you're entitled to a monthly benefit from Social Security based on your own work history, but it's only $1,500. If you wait until full retirement age and then claim a spousal benefit, you'd be bumped up to a monthly income of $1,600 if your ex-spouse is eligible for $3,200.
When can you claim spousal benefits?
Spousal benefits cannot be claimed until a current spouse files for Social Security benefits, but for divorced individuals, this restriction does not apply. If the divorce was finalized at least two years prior, individuals can claim a spousal benefit once they turn 62, regardless of whether their ex-spouse has filed or not. However, to receive the full spousal benefit, you must wait until your own full retirement age.
It's also important to note that you must have been married to your former spouse for a minimum of 10 years to be eligible for spousal benefits. If you've remarried since, you can only collect a spousal benefit on an ex's record if that subsequent marriage ended due to divorce, death, or annulment.
Many divorced individuals may not even realize they are entitled to Social Security income based on a former spouse's record. Neglecting to claim them could result in missing out on significant income they are entitled to, so it's essential to become familiar with the rules regarding spousal benefits.
Without claiming their own Social Security benefits, divorced individuals can still boost their retirement income by up to half of their ex-spouse's monthly benefit, provided they were married for at least 10 years. Even if their own benefits are meager, they can potentially receive a higher monthly income by claiming spousal benefits, especially if they wait until their full retirement age.
