Determining Your Eligibility for Spousal Social Security Benefits: A Guideline
Approximately 68 million Americans are anticipated to get a Social Security payment in 2024, as per the Social Security Administration, with around 9 out of 10 adults aged 65 and above falling into this category.
Retirement benefits are the most prevalent kind of Social Security, but other types of benefits are also available. For instance, if you're married or divorced, you can potentially qualify for spousal benefits.
Based on October 2024 data from the Social Security Administration, the average spouse of a retired worker collects around $910 per month in benefits. Therefore, it's beneficial to claim this type of payment if you're eligible. Here are the primary factors to determine if you're eligible for spousal (or divorce) benefits:
1. Marital status
To qualify for spousal benefits, you must be married to someone who is entitled to either retirement or disability benefits. You also need to have been married for at least a year before you can start claiming spousal Social Security.
Divorced spouses can also receive benefits based on a former spouse's work record. To qualify, you shouldn't be currently married, and you must have been married to your ex-spouse for at least 10 years. If you've been divorced less than 2 years, you'll need to wait until your ex-spouse files for Social Security before you can start receiving divorce benefits.
With both types of benefits, your payments won't impact your spouse or ex-spouse's Social Security payments. If your ex-spouse has remarried, their current spouse can still claim spousal benefits even if you're receiving divorce benefits.
2. Age
Generally, you'll need to wait until age 62 to start claiming either spousal or divorce benefits. The exception is if you're caring for your spouse's child. If that child is either under age 16 or has a disability (and your spouse is at least 62 years old), you can file for spousal benefits at any age.
Additionally, to receive the full benefit you're entitled to, you'll need to wait until your full retirement age (FRA) to begin claiming. Filing earlier than your FRA will permanently reduce your monthly payment. Unlike standard retirement benefits, waiting until after your FRA to file won't earn you larger checks each month. There's no financial incentive, then, to delay past your FRA with spousal or divorce benefits.
3. Retirement benefit (if you're receiving one)
You can qualify for spousal or divorce benefits even if you've never worked, but if you've worked long enough to qualify for retirement benefits, it could affect your payments.
The maximum you can receive in spousal or divorce benefits is 50% of the amount your partner will receive at their FRA. If your own retirement benefit is higher than that, it will disqualify you from other types of Social Security. And if your benefit is lower, you'll only receive the higher of the two amounts.
For example, say that you qualify for $800 per month in retirement benefits by claiming at your FRA, while your spouse will receive $2,000 per month at their FRA. In this case, you could collect up to $1,000 in spousal benefits. The Social Security Administration will pay out your $800 monthly benefit first, then you'll receive an additional $200 per month in spousal benefits so that your total payment equals the higher amount.
What if your spouse passes away?
Although it's an unpleasant topic, it's vital to at least be aware of how your benefit might change if your spouse passes away later in retirement.
If you're widowed, you won't qualify for spousal or divorce benefits anymore. However, you can often start claiming survivor benefits. Most spouses will qualify for this type of benefit, and sometimes divorced spouses, as well as other family members (like parents or adult children who were financially dependent on the deceased person), are eligible, too.
Widow(er)s who have reached their FRA can often receive their spouse's entire benefit amount after that person passes away. However, other factors can affect how much you receive, such as your relation to the deceased person and how many people are claiming on that person's record. If you think you might qualify for survivor benefits, it's best to contact your local Social Security office to find out how much you might collect.
Social Security can be complex at times, but taking advantage of every benefit you qualify for can boost your payments by hundreds of dollars per month. By understanding the requirements behind spousal, divorce, and survivor benefits, you can squeeze every penny out of Social Security.
In the context of retirement planning, managing your finances effectively is crucial. If you're approaching retirement age, you might be considering how your Social Security benefits could affect your income. Therefore, understanding how spousal benefits work can be beneficial. If your spouse has a higher retirement benefit than you, you might be eligible to receive up to 50% of their benefit as a spousal benefit, ensuring you have a stable income during retirement.