Social Security spousal benefits can be a crucial component of the Social Security program, designed to provide financial support to spouses — whether they are currently married, divorced or widowed. Understanding these benefits can significantly impact retirement planning and financial security in your later years.
Let’s take a closer look at Social Security spousal benefits, explain who qualifies and cover important aspects such as spousal benefits after divorce and what happens to your benefit if your spouse dies.
What Are Social Security Spousal Benefits?
Social Security spousal benefits are payments provided to the spouse of a worker who is eligible for Social Security retirement or disability benefits. These benefits are intended to provide financial support to spouses who may not have sufficient work credits or earnings to qualify for their own Social Security benefits. Additionally, individuals whose own working benefits amount to less than one-half of their spouses primary insurance amount (PIA) may also be eligible for spousal benefits.
Benefits are calculated based on the primary earner’s (the spouse’s) work history and earnings. When claimed at full retirement age, the spousal benefit can be up to 50% of the primary earner’s full retirement benefit. It’s important to note that claiming spousal benefits does not reduce the amount the primary earner receives.
Who Qualifies for Social Security Spousal Benefits?
To qualify for Social Security spousal benefits, you must meet several criteria:
- Marriage duration: You must have been legally married to the worker who is eligible for Social Security benefits for at least one year.
- Age requirement: You must be at least 62 years old to start receiving spousal benefits. However, if you wait until your full retirement age (which varies depending on your birth year), you can receive the maximum spousal benefit based on your spouse’s earnings record.
- Primary earner’s benefit status: The primary earner must be receiving their own Social Security retirement or disability benefits for you to receive spousal benefits.
- No higher personal benefit: If you’re eligible for Social Security benefits based on your own work record, your spousal benefit will be compared to your own benefit and you will receive the higher of the two amounts.
Social Security Spousal Benefits After Divorce
Divorce does not necessarily disqualify you from receiving Social Security spousal benefits. In fact, you may still be eligible under certain conditions:
- Marriage duration: The marriage must have lasted at least 10 years.
- Age requirement: You must be at least 62 years old.
- Time Requirement: You must be divorced for at least 2 years.
- Marital status: If you remarry, you generally cannot receive benefits based on your former spouse’s record unless the subsequent marriage ends, or you remarry after the age of 60.
- Divorced spouse’s benefit: The divorced spouse can receive benefits even if the primary earner has not yet claimed their benefits, provided they are eligible for benefits and are at least 62 years old.
Hypothetical Example:
Jane was married to John for 12 years before they divorced. Jane never remarried. When Jane turns 62, she can apply for Social Security spousal benefits based on John’s earnings record, even if John has not yet claimed his benefits. Jane’s benefit will be calculated similarly to a spouse’s benefit, with the same age-related reductions or increases, and it won’t affect John’s benefit when he begins to receive them.
What Happens to Your Benefit If Your Spouse Dies?
If your spouse passes away, you may be eligible for survivor benefits (sometimes called widow or widower benefits), which can replace or supplement your spousal benefits. Survivor benefits can be up to 100% of the deceased spouse’s benefit, depending on the survivor’s age and the age at which the deceased spouse started receiving benefits.
You can start receiving survivor benefits as early as age 60 (or age 50 if you are disabled). Surviving spouses caring for a child under age 16 or a disabled dependent can receive benefits at any age.
If you were already receiving spousal benefits before your spouse’s death, your benefit amount could increase to match the deceased spouse’s full benefit. In cases where you were claiming your own Social Security benefit, you would be able switch to the survivor benefit if it is higher. This is the case for divorced spouses as well. You may need to file for survivor benefits to ensure your benefit amount is increased to the larger survivor benefit.
If you were not receiving benefits at the time your spouse passes away, you have a choice between taking survivor benefits or your own benefit. Assuming you are not disabled or do not have a child under age 16, you could choose to take a survivor benefit at age 60 (which will be reduced for taking early) and you can switch to your own benefit later if it will be larger. Or you could wait until age 62 and take your own benefit and then switch to the survivor benefit later if the survivor benefit will be larger. Options for widows and widowers should be carefully reviewed to get the most out of your Social Security benefits.
Hypothetical Example:
Mike was receiving spousal benefits based on his wife, Sarah’s, earnings. Sarah passes away, making Mike eligible for survivor benefits. Since Sarah’s benefit was higher than what Mike was receiving as a spousal benefit, he switches to the survivor benefit to receive the higher amount.
Planning for Social Security Spousal Benefits
Proper planning for Social Security spousal benefits involves understanding when to claim benefits and how they fit into your overall retirement strategy. Here are a few tips:
- Consider full retirement age: Waiting until full retirement age to claim spousal benefits can ensure you receive the maximum amount.
- Evaluate personal benefits: Compare your own Social Security benefits to the spousal benefit to determine which provides a higher amount.
- Understand timing: The timing of when each spouse claims benefits can affect the overall benefit amount, especially if one spouse has a significantly higher earnings record.
- Plan for survivorship: Consider the impact of survivor benefits on your financial planning and how they might change your income in the event of your spouse’s death.
The Bottom Line
Social Security spousal benefits are an essential part of retirement planning, offering financial support to spouses who may not have sufficient work history or who can benefit from their spouse’s earnings record.
Understanding eligibility, the impact of divorce, and the transition to survivor benefits can help you make informed decisions that maximize your retirement income. Still have questions? Talk to one of our financial advisors today.
Converting from a traditional IRA to a Roth IRA is a taxable event. A Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Tax services are not available through CWM, LLC nor Cetera Advisor Networks LLC.
These examples are hypothetical only, and do not represent actual persons.
This information may not be relied on for the purpose of determining your social security benefits or eligibility, or avoiding any federal tax penalties. You are encouraged to seek advice from your own tax or legal professional.
Tom Fridrich is a non-registered affiliate of Cetera Advisor Networks, LLC.
1 Social Security Administration, “Social Security Basic Facts,” https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf.
