When you file for Social Security, your spouse will be eligible for payments known as spousal benefits. However, they do not receive these payments automatically. Instead, they must file with the Social Security Administration regardless of whether they receive their own retirement benefits or not.
A financial advisor can help you plan for Social Security benefits and create a comprehensive retirement income plan. Contact a fiduciary advisor.
For example, imagine that a man will receive $3,000 at retirement age. His wife can collect up to $1,500 in spousal benefits based on his earnings history, but she must apply for them. Here’s a closer look at how partner benefits work.
What are Social Security benefits for spouses?
Spousal benefits are a form of social security benefits for the spouses of the beneficiaries. If you are married or previously married, you can claim benefits worth up to 50% of your spouse’s full retirement benefit. For most people, this means the benefits they would receive at age 67. These payments will not be deducted from your spouse’s payments and your spouse cannot change your eligibility to receive them.
To claim affiliate benefits, the SSA requires the following:
If both criteria are met, the secondary spouse can apply for spousal benefits. However, there are two exceptions to these rules:
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If the spouses have been separated for more than two years, the secondary spouse can claim spousal benefits regardless of the primary spouse’s retirement status
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If the secondary spouse is caring for a child under age 16 or receiving disability benefits through the SSA. they can apply for a partner benefit before the age of 62
You can also apply for retirement benefits based on your ex-spouse’s benefits if you have been married for at least ten years and have not remarried. This is not affected by the marital status of the primary spouse, and in some situations you can claim benefits before the primary spouse has retired.
Whether it’s guidance on spousal benefits or advice on how and when to withdraw money from your retirement accounts, a financial advisor can help you plan for retirement.
How do you calculate the partner benefits?
Spousal benefits are limited to 50% of the higher-earning spouse’s “primary insurance amount” (PIA) – their benefit at full retirement age. For example, if you receive $3,000 per month in Social Security, your spouse could receive up to $1,500 per month in spousal benefits if he or she waits until their own full retirement age.
Although spouses are eligible for spousal benefits as early as age 62, this will reduce their lifetime benefit by a certain percentage for each month before age 67. Claiming spousal benefits at age 62 can result in a benefit worth only 32.5% of the spousal benefit. the higher-earning spouse’s primary insurance amount. That is, if you claim spousal benefits at age 62, you will receive $32.50 for every $100 of the primary spouse’s PIA.
Unfortunately, delaying spousal benefits until after full retirement age does not have the opposite effect. The partner allowance will not be increased if you apply for it after the age of 67.
The SSA automatically performs this calculation when you apply for benefits. If you are entitled to your own retirement benefits as well as spousal benefits, the SSA will issue the largest payment. If you are already receiving benefits based on your own earnings history, you can transfer payments to spousal benefits once your spouse retires. This is usually done if your partner benefits are higher than your own pension benefits.
And if you need help calculating Social Security benefits and deciding when to claim them, talk to a financial advisor.
What benefits does your wife get?
To understand how this works, let’s look at our hypothetical situation from above. Imagine that at full retirement age you expect to receive $3,000 per month from Social Security.
In all cases, your wife’s spousal benefits are based on your primary insurance amount of $3,000, as well as her age. For example, if you retire at age 67, here’s how much her spousal benefits would be, based on the age she chooses to claim them:
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62: $975 per month ($3,000 * 0.325)
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67: $1,500 per month ($3,000 * 0.5)
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70: $1,500 per month ($3,000 * 0.5)
As you can see, claiming spousal benefits at age 62 would only net her $975 per month, which is 32.5% of your primary insurance amount. Once she reaches her own full retirement age, she will be eligible for her maximum spousal benefit of $1,500 per month. Before filing for Social Security, consider speaking with a financial planner to discuss how your benefits will affect your retirement income plan.
But what if your wife also has her own pension benefit? How would the partner benefits affect the amount she ultimately collects?
For example, suppose your wife qualifies for a retirement benefit of $1,200 based on her own earnings history. Because her own retirement benefit is lower than her spouse’s benefit, the SSA would pay the latter. And if she qualified for $1,600 based on her own work history, the SSA would simply pay out that amount.
In short
Spousal benefits are Social Security benefits made based on the income record of the spouse with the highest incomes. A spouse can receive up to 50% of their spouse’s Social Security benefits at full retirement age, but these payments are not made automatically. As with all benefits, you must apply to the SSA to receive them.
Tips for Maximizing Social Security
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Social Security plays a crucial role in many Americans’ retirement plans. In fact, two people receiving the maximum benefit in 2024 could produce a household income of almost $117,000. With that in mind, here are some strategies to maximize Social Security benefits for you and your partner.
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A financial advisor can help you determine a Social Security strategy and create a comprehensive retirement plan. Finding a financial advisor does not have to be difficult. SmartAsset’s free tool matches you with up to three vetted financial advisors serving your area, and you can have a free introductory meeting with your advisors to decide which one you think is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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