You Can Claim Up to 50% of Your Spouse’s Social Security Benefit as Long as You Don’t Do This
Spousal Social Security benefits come with a timing trap that can permanently shrink your monthly checks, and most people walk right into it without realizing there is a point of no return.
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Most people earn Social Security benefits for their retirement by working for many years and paying into the system. But that isn’t the only path toward Social Security.
Some people are eligible for Social Security via spousal benefits. And those spousal benefits could be worth up to 50% of your spouse’s primary insurance amount, which is the benefit they’re eligible for at their full retirement age (FRA).
But there’s one key rule you need to follow if you want to collect 50% of your spouse’s Social Security benefit.
It’s a matter of getting your timing right
When you’re claiming Social Security based on your own earnings record, you can file for benefits as early as age 62. However, you won’t be able to collect your benefits without a reduction until FRA, which is 67 for anyone born in 1960 or later.
When you’re filing for spousal benefits from Social Security, the same set of rules applies. Your maximum spousal benefit from Social Security is 50% of your spouse’s FRA benefit, which you’re eligible for at your FRA. But if you file early, which you can do starting at 62, you’ll face a permanent reduction.
Now it’s one thing to get stuck with reduced benefits when you’re claiming Social Security on your own earnings record. But since spousal benefits max out at 50% of a spouse’s benefit, filing early could result in a substantial financial hit.
Say your spouse is entitled to $2,000 a month in Social Security. If they file at 62, they’ll shrink their monthly checks to $1,400.
But as someone collecting spousal benefits, the maximum amount you’d be entitled to in that scenario is $1,000 a month at your FRA. So whittling that amount down by filing early could sting financially.
There’s no sense in delaying a spousal benefit claim
While waiting for FRA to claim spousal benefits can be a smart move, one thing you don’t want to do is delay a spousal benefit claim hoping for a boosted check. The reason? You won’t get one.
When you’re claiming Social Security based on your own earnings record, your monthly benefits can get an 8% boost for each year you hold off until your 70th birthday. But those same delayed retirement credits do not apply to spousal benefits. So there’s no sense in waiting past FRA in that case.
It’s important to know the rules
Clearly, spousal benefits don’t work exactly the same as Social Security benefits based on your own earnings record. It’s important to know the difference ahead of retirement so you don’t end up claiming spousal benefits at the wrong time.
Another thing you should know is that if you’re getting spousal benefits and your spouse passes away, those monthly checks should get upgraded to survivor benefits. At that point, your monthly payments from Social Security should match the monthly benefit your spouse collected while they were alive.
So while it doesn’t help to delay a spousal benefit claim, having your spouse delay their claim could pay off and ultimately leave you with more money.
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Maurie Backman has more than a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. Her work has appeared on sites that include The Motley Fool, USA Today, U.S. News & World Report, and Kiplinger.
Prior to becoming a full-time financial writer, Maurie worked in the financial industry trading distressed debt. She then changed course and spent a few years designing electronic toys. After a stint in content marketing and UX, she shifted back into writing and has since covered everything from the housing market to estate planning to Medicare.
When she's not busy writing, Maurie can be found hiking, walking her dogs, driving her kids to their various sports practices and games, and curling up with a good book. She cooks on occasion and bakes way too often.
