When planning for retirement, one of the most overlooked tools is the Social Security spousal benefit. Designed to support spouses who may have earned less or not worked outside the home, spousal benefits can play a major role in ensuring financial stability later in life. With the right strategy, couples can increase lifetime income, better manage longevity risk, and create more predictable cash flow.
What Are Spousal Benefits?
Spousal benefits are Social Security payments available to the spouse of a worker who qualifies for retirement benefits. They allow a lower-earning or non-earning spouse to claim up to 50% of their partner’s benefit amount once eligibility requirements are met.
- Eligibility: You must be legally married (or in some cases, a qualified divorced spouse) and at least age 62.
- Amount: The maximum spousal benefit is 50% of your partner’s full retirement benefit, though claiming early reduces the amount.
- Requirement: Your spouse must have already filed for their own Social Security retirement benefit for you to receive spousal benefits.
Key Factors That Affect Spousal Benefits
Marriage Duration and Status
- Married couples typically qualify if the marriage is recognized under state law.
- Divorced spouses may also qualify if the marriage lasted at least 10 years and the applicant has not remarried.
Age and Timing of Claiming
- Claiming spousal benefits at 62 reduces the monthly benefit permanently.
- Waiting until full retirement age (66–67, depending on birth year) maximizes the spousal benefit.
- Delaying past full retirement age does not increase spousal benefits (only the worker’s own benefit grows with delayed retirement credits).
Worker’s Record
- The spousal benefit is tied directly to the working spouse’s earnings history.
- If the working spouse has paid into Social Security for at least 10 years, the non-working or lower-earning spouse may qualify.
How to Maximize Your Spousal Benefits
Coordinate Claiming Strategies as a Couple
The timing of when each spouse claims matters. For example:
- If one spouse has much lower lifetime earnings, it may make sense for that spouse to claim spousal benefits while the higher-earning spouse delays their own claim to maximize their retirement benefit.
- Couples should model different claiming ages to see how total household income changes over time.
Compare Spousal vs. Personal Benefits
If you worked and qualify for your own benefit, you can choose whichever is higher: your benefit or the spousal benefit. In some cases, you may start with spousal benefits and later switch to your own if it grows larger.
Understand Survivor Benefits
Spousal benefits also play into survivor benefits. If your spouse passes away, you may be eligible to receive their full retirement benefit as a survivor, which can be higher than your current spousal benefit. Planning ahead helps protect against unexpected income loss.
Work With a Financial Professional
A financial planner or retirement specialist can run break-even analyses, help you coordinate claiming ages, and model how benefits interact with other retirement income sources like pensions, IRAs, or 401(k)s.
Tools and Resources for Planning
- SSA’s Retirement Estimator: Lets you project benefits under different claiming ages.
- Online calculators from firms like Prudential or Fidelity: Provide scenario modeling for spousal benefits.
- Workshops and webinars: Many community organizations and financial advisors host free or low-cost retirement planning sessions.
FAQs
Can divorced spouses claim benefits?
Yes, if the marriage lasted at least 10 years, you’re currently unmarried, and your ex-spouse qualifies for benefits.
Does delaying past full retirement age increase spousal benefits?
No. Only the worker’s benefit grows after full retirement age. Spousal benefits cap at 50% of the worker’s benefit at full retirement age.
Can I switch between benefits?
Yes. If your own benefit grows larger than the spousal benefit, you can switch to your own retirement benefit later.
Conclusion
Spousal benefits are a powerful but often misunderstood part of retirement planning. By learning the eligibility rules, comparing spousal vs. personal benefits, and coordinating strategies with your spouse, you can maximize the long-term income you receive from Social Security. This is one area where timing, planning, and professional guidance can add tens of thousands of dollars to your retirement security.
