The 50% Social Security Spousal Benefit Limit Married Couples Completely Overlook
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If you’re eligible for Social Security in retirement, it’s important to claim your benefits at an optimal time. That’s because your filing age directly affects the amount of money you receive each month.
Your monthly benefit is yours to collect without a reduction at full retirement age, or FRA. FRA is 67 for anyone born in 1960 or later.
If you file for Social Security before FRA, which you can do starting at age 62, your benefits will be reduced. The flipside is that for each year you delay your Social Security claim past FRA, your benefits get an 8% boost.
This incentive runs out once you turn 70. But all told, there are lots of opportunities to grow your Social Security checks.
But delaying Social Security past FRA doesn’t always result in a boost. And if you’re claiming spousal benefits from Social Security, it’s important to recognize that the rules are very different.
The 50% benefit max that comes with spousal Social Security
If you didn’t work and therefore don’t qualify for Social Security on your own, you may be eligible for spousal benefits based on your spouse’s earnings record. And if you are eligible for Social Security but are looking at smaller benefits, it could pay to file for spousal benefits instead if they’re larger.
Just as it’s important to file for Social Security at the right time if you’re claiming on your own earnings record, so too it is important to file for spousal benefits strategically. But that doesn’t mean you should delay your claim.
You’re eligible for your spousal benefits without a reduction once you reach your FRA. If you file early, which you can do starting at 62, your spousal benefits will be reduced.
But unlike benefits you’re claiming on your own record, spousal benefits from Social Security do not qualify for delayed retirement credits. If you wait beyond FRA to claim spousal benefits, those paychecks will stay the same.
Social Security spousal benefits max out at 50% of your spouse’s FRA benefit. So if that number is $2,500 and you claim Social Security at your FRA, you should be in line for $1,250.
But that $1,250 is the maximum Social Security will pay you in this case for a spousal benefit. If you wait beyond FRA to file, you’ll only be delaying access to money you might need. So you should generally plan to claim spousal benefits at FRA unless you run into an emergency and need the money sooner.
It’s important to know the rules
Some people don’t realize that Social Security pays spousal benefits. Others may not realize that delaying a spousal benefit claim past FRA offers no upside.
It’s important to read up on how Social Security works, whether you’re planning to claim benefits based on your own earnings record or a spouse’s. Figuring out when to file for benefits and how much money to expect could make it easier to get your retirement finances in order and better manage your expenses once your job-related paychecks disappear for good.
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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, The Washington Post, 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.
