As individuals approach retirement age, they are often faced with an overwhelming amount of new information to absorb. Topics such as Medicare and required minimum distributions (RMDs) are completely new, and there is limited time to comprehend them before implementation is required. For those planning to draw Social Security benefits based on a spouse’s work record, spousal Social Security benefits are another aspect to consider.
Fortunately, the fundamental rules regarding spousal benefits are relatively straightforward. The following are five essential facts about these benefits that every retired couple should be aware of:
1. Eligibility Requirements
To qualify for spousal benefits, individuals generally need to be at least 62 years old and married to their spouse for a minimum of one year. There are exceptions to this rule; for instance, the one-year marriage requirement is waived for those who are parents of their spouse’s child. Additionally, individuals can collect spousal benefits at any age if they are caring for a child under 16 or a disabled child eligible for benefits based on the spouse’s work record. It is essential to note that spousal benefits can only be claimed after the spouse has filed for their own benefits.
2. Calculation of Benefits
Spousal benefits can amount to up to 50% of the amount the spouse is entitled to receive at full retirement age (FRA). If the spouse decides to postpone retirement until age 70, their monthly benefit will increase due to delayed retirement credits. However, the spousal benefit is capped at 50% of the spouse’s FRA amount, regardless of when the retired worker claims their benefit. Unlike the retiree’s benefit, spousal benefits do not increase if claimed after FRA. Claiming spousal benefits earlier than FRA results in a reduced benefit, with a possible 35% reduction for those claiming at age 62 if their FRA is 67.
For clarity on these benefits, couples can access personalized retirement benefit estimates by creating a free and secure account at the "my Social Security" website.
3. Benefits Based on Individual Work History
If a person qualifies for Social Security retired worker benefits as well as spousal benefits, the Social Security Administration processes the claim as if both were applied for simultaneously and awards the higher benefit. This is referred to as "deemed filing."
4. Benefits Based on an Ex-Spouse’s Record
Divorce does not necessarily preclude eligibility for spousal benefits. Individuals may qualify if they meet the following criteria: they are at least 62 years old, were married to their ex-spouse for a minimum of 10 years, and are currently unmarried. Even if the ex-spouse has not filed for benefits, the individual may still receive spousal benefits if they have been divorced for at least two years. The ex-spouse is not notified of the application for benefits based on their work record.
5. Application Process
Applying for Social Security benefits can be easily done online. Once individuals reach 61 years and nine months of age, they can visit the Social Security Administration’s website to start the application process for retirement benefits. However, the first benefit check is only received after turning 62.
Retirement should be a pleasant life transition. To ensure a smooth transition, it is advisable to familiarize oneself with the programs designed to enhance post-retirement life.
