Couples share almost everything: food, homes, vacations, and more. In some cases, they can even share Social Security retirement benefits.
The Social Security program has included spousal benefits since its inception in the 1930s. Here are three things all retired couples should know about Social Security spousal benefits.
1. Conditions for eligibility for partner benefits
Can you receive Social Security retirement benefits based on your spouse’s work history? Only if you meet specific requirements.
First, you generally must have been married to your spouse for at least a year before you are entitled to spousal benefits from Social Security. However, this does not apply if you are the parent of your spouse’s child. Ex-spouses may also be eligible for spousal benefits if they have been married for at least 10 years.
Second, you must be at least 62 years old to claim spousal benefits, with a few exceptions. If you are caring for a child 16 or younger, the age requirement is waived. The same is true if you are caring for a child 17 or older with a disability who is eligible for Social Security dependent benefits based on your spouse’s record.
Third, your spousal benefit cannot be more than the amount you would receive based on your own earning history. If it is not, the Social Security Administration (SSA) will pay you based on your own work history instead of your spouse’s.
2. Amount of any partner allowance
The maximum spousal benefit is 50% of the primary insurance amount (PIA) of the higher earning spouse. The PIA is the benefit amount of the higher earning spouse at full retirement age. For anyone born in 1960 or later, full retirement age is 67.
However, spouses will not receive this maximum benefit if they begin collecting benefits before their own full retirement age. The Social Security early retirement penalty will be imposed with benefits reduced by five-ninths of 1% for each month up to 36 months before full retirement age is reached, and by five-twelfths of 1% for each month before that. However, if a spouse is caring for a qualifying child, spousal benefits will not be reduced.
Please note that the spousal benefit is not based on when the spouse with the highest income begins receiving retirement benefits. If this spouse retires earlier or waits until the age of 70, the amount of the partner benefit will not change. However, it would affect the survivor’s benefits if he or she dies.
3. Deemed Submission
The Bipartisan Budget Act of 2015 made an important change often called the “deemed filing rule” that affects Social Security spousal benefits. Dear filing means that when individuals apply for spousal benefits, they must also apply for their own retirement benefits at the same time. In the past, people could apply for spousal benefits before they reached full retirement age, but waited to apply for their own retirement benefits until they reached full retirement age.
However, the deemed filing rule does not apply if you receive spousal benefits because you are caring for your retired spouse’s qualifying child. It also does not apply to survivor benefits. If your spouse dies, you can receive Social Security survivor benefits without filing for your retirement benefits.
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Social Security Benefits for Spouses: 3 Things All Retired Couples Need to Know was originally published by The Motley Fool
