Your whole life together with your partner, side by side, sharing dreams, sacrifices and common goals. The purest teamwork. When retirement time comes, Social Security not only ensures financial support for you, but also for the person who has been your partner along the way. However, many couples are unaware of how spousal benefits work and end up leaving money on the table, money that is theirs. Here we are going to help you understand how you can claim these benefits strategically and ensure a more stable future for both of you!
Who can claim benefits as a spouse?
First of all, you need to know that you will not be able to claim these benefits before your partner receives them, but your partner does not have to have reached full retirement age before you can claim this payment.
This Social Security benefit (as a spouse) has several key requirements that we detail below:
- You can claim them from age 62. However, if you have a child under 16 or a disabled person in your care, you could do so earlier.
- You can claim benefits while your spouse receives his or her own retirement or disability benefits.
Can a divorced spouse claim this benefit?
It is an exception and the answer is yes, although it is important to note that it is necessary that the couple was married for at least 10 years, so they can also qualify (as long as they meet the rest of the established requirements).
How much money can you receive with this benefit?
The amount will be based on the amount of benefits the spouse is entitled to when they reach full retirement age, so in that case, you can claim 50% of your spouse’s benefits as a spouse (if you wait until your full retirement age). If you decide to claim earlier, the Social Security Administration (SSA) will do a calculation to determine how much you are entitled to. They will compare the benefits you would receive based on your own work history to what you could receive as a spouse, and they will always assign you the higher amount.
Of course, when you file for spousal benefits, you must also file for your own retirement benefits at the same time. This is known as “presumptive filing,” a rule that was implemented in 2016 to prevent people from maximizing their income by strategically choosing when to file for each benefit.
Here’s an example: If you claim three years (36 months) early, your benefits would be reduced by up to 25%. And so on, with the years before FRA. That’s why it’s so important to make an informed decision about retirement and, above all, to have a financial plan when it comes so you know what makes the most sense for you.
Is it worth delaying your claim?
While this is a very personal decision for each individual, delaying retirement benefits (until age 70) can increase future payments by up to 8% per year. Spousal benefits do not offer any additional increases if you decide to wait beyond full retirement age. This means it is best to claim as soon as it is financially feasible for you.
Social Security spousal benefits can provide a great relief for couples, but it’s very important to make informed decisions. So, we can’t tell you which option is best for you because it’s something you must personally evaluate (since longevity, health status, or immediate financial needs of each individual come into play). We can, however, advise you to seek help from a financial advisor if you have questions about the best strategy for your particular situation!