Why the Average Social Security Spousal Benefit Check Is Only $987, and What it Means for Your Retirement
Millions of retirees count on Social Security spousal benefits without realizing just how little those checks can actually deliver, and the rules behind them make the situation even harder to improve than most people expect.
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There are millions of people today who collect benefits from Social Security every month. And some people base their retirement plans on their Social Security checks to the point where they don’t have other income to rely on.
That’s not a wonderful strategy if you’re getting benefits based on your own earnings record. But it’s an even more dangerous strategy if you don’t qualify for Social Security on your own and will be reliant on spousal benefit checks. That’s because spousal benefits only pay so much, and you may be surprised at how small the average spousal benefit is today.
Why the average Social Security spousal benefit is so small
The average retirement benefit paid by Social Security today is $2,086. The average spousal benefit, on the other hand, is only $987.
The reason for that is simple. Spousal benefits max out at 50% of a spouse’s full retirement age benefit. So if the typical recipient only collects $2,086 per month, it stands to reason that the typical spousal benefit payment would be about half that amount.
Also, spousal benefits can be reduced just like regular benefits if they’re claimed early. You can sign up for spousal benefits as early as age 62. But if you don’t wait for full retirement age (FRA), you’ll shrink those payments.
Another reason spousal benefits are much smaller than regular retirement benefits? You can’t boost them with delayed retirement credits.
If you hold off on claiming Social Security past FRA and you’re taking benefits based on your own earnings record, your monthly checks can grow 8% for each year you hold off, up until the age of 70. But spousal benefits aren’t eligible for delayed retirement credits.
As mentioned above, spousal benefits max out at 50% of a spouse’s FRA benefit. So if your spouse is eligible for $2,400 a month, the most you can get out of a spousal benefit is $1,200 a month — period.
There are other ways for spousal benefits to grow
While spousal benefits max out at 50% of a spouse’s FRA benefit initially, the amount you start out with isn’t necessarily the maximum you’ll ever get. Like regular Social Security benefits, spousal benefits are eligible for a cost-of-living adjustment each year. So over time, your payments could rise quite a bit.
Also, if you’re getting spousal benefits and your spouse passes away, Social Security will generally bump you up to survivor benefits. Survivor benefits are worth 100% of the monthly benefit your spouse collected.
Make sure you know what to expect
Even if you don’t qualify for Social Security benefits yourself, spousal benefits may play a big role in your retirement income. But make sure you do the math and understand how much money those spousal benefits will pay you. And recognize that the amount may not be that large.
It’s important to try to have retirement income outside of Social Security spousal benefits. If you don’t work and expect to rely on spousal benefits later in life, encourage your spouse to contribute steadily to a retirement savings plan you both share. You may need the extra money once you see what Social Security pays both of you.
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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.
