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The rules around Spousal Social Security benefits have several nuances, but some policies are crystal clear. One is that a spouse must specifically request to begin receiving spousal benefits. That is, it’s not automatic. Another certainty is that a spouse will only receive the spousal benefit if it is a larger amount than the benefit they would receive based on their own work history. In your case, your spouse would be eligible for a spousal benefit only if they request it and their own benefit amounted to less than 50% of the benefit you would be entitled to at full retirement age: so, if your wife’s benefit is $1,475 or less, in this case. Here are the rules to know.
A financial advisor can help you develop a plan for making the most of your Social Security retirement benefits.
Social Security provides retirement support for spouses of beneficiaries in the form of spousal benefits. Someone who is married or has been married to a Social Security recipient can receive up to 50% of the spouse’s benefit. The size of the spousal benefit usually is based on the amount you would receive if they claimed their benefits at full retirement age, which for most people is 67.
Your wife may be eligible for spousal benefits if she is at least age 62, and the you as the main wage-earner in the couple have already filed for Social Security benefits. One exception exists for spouses who have been divorced at least two years: They don’t need to wait for their former partner to file for benefits first. Another exception covers someone caring for a minor or disabled child. These individuals can claim spousal benefits without reaching age 62.
The amount of the spousal benefit is limited to 50% of your benefit if you were to claim at full retirement age. If your wife claims spousal benefits before reaching her own full retirement age, it will reduce her benefit by an age-based percentage. At the earliest typical claiming age of 62, for example, the maximum benefit is 32.5%, rather than 50% of the primary Social Security recipient’s benefit.
For a primary wage earner with a full retirement benefit of $2,950, the maximum spousal benefit would be $2,950 times 50%, or $1,475. This spousal benefit cap does not change based on when the primary earner claims their benefits. If the primary earner waited to claim their benefit until it was higher at age 70, for instance, the maximum spousal benefit would still be half of their full retirement age benefit of $2,950.
If your wife claims the spousal benefit before reaching her own full retirement age (remember, generally age 67), the maximum spousal benefit would be reduced. For example, she filed for the spousal benefit at age 62, the $1,475 maximum amount would be reduced by 32.5% to $991.20.
It’s also possible that the Social Security Administration (SSA) rules that the spousal benefit claimant is not eligible at all. For example, if your wife’s work record entitled her to a benefit of $1,000 per month at age 62, her own benefit would be higher than the $991.20 that is the maximum they would be eligible for after applying the 32.5% reduction to the maximum spousal benefit. In this case, since she qualifies for a higher benefit on her own work record, the SSA likely would not allow her spousal benefits.
The age of the primary beneficiary when claiming Social Security benefits could also be a factor. If the $2,950 benefit is based on their claiming at age 70, the maximum spousal benefit for their partner would be lower than $1,475. That’s because the cap on spousal benefits is set based on the primary earner’s benefit at full retirement age, which would be lower than the benefit at age 70.
Your own personal circumstances may determine the best course of action for your Social Security benefits. Consider using this free tool to match with a financial advisor and discuss your goals.
A spousal benefit is generally only paid after you as the primary breadwinner begin claiming benefits and your wife contacts Social Security to establish eligibility and request the spousal benefit. Eligibility also typically depends on your wife having already reached age 62. The amount of the benefit is capped at half of the primary earner’s full retirement benefit and may be less if your wife has not reached full retirement age yet when she makes the claim. And the spousal benefit may not be paid at all if your wife would qualify for a higher benefit based on her own work record.
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