Spousal benefits are up to 50% of the full retirement age of the higher-earning spouse.
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When you enter Social securityYour spouse is eligible for payments known as spousal benefits. However, you will not receive these payments automatically. Instead, they must apply to the Social Security Administration whether or not they are receiving their own retirement benefits.
A financial advisor can help you plan for Social Security and build a comprehensive retirement income plan. Connect with a trusted advisor.
For example, suppose a person receives $3,000 from him Full retirement age. The wife can collect up to $1,500 in spousal benefits on her earnings history, but she must apply for them. Take a closer look at how spousal benefits work.
Spouse benefits They are a form of social security payments for beneficiary couples. If you are married or previously married, you can claim benefits worth up to 50% of your spouse’s full pension. For most people, this means benefits they receive at age 67. These payments are not deductible by your spouse, and your spouse cannot change your right to receive them.
To receive spousal benefits, the SSA requires:
If both of these criteria are met, the second spouse can apply for spousal benefits. There are two exceptions to these rules:
If the couple has been divorced for more than two years, the secondary spouse can claim benefits regardless of the primary spouse’s retirement status.
If the secondary spouse is caring for a child under the age of 16 or receiving disability benefits through the SSA. You can apply for spousal benefits before age 62.
You can also apply for retirement benefits based on your former spouse’s benefits Married for at least 10 years And I will not marry you again. This does not affect the marital status of the primary spouse, and in some cases, the primary spouse can claim benefits before retirement.
guidance on spousal benefits or advice on how and when to withdraw from retirement accounts; Financial advisor It helps you plan for retirement.
A woman watches as her husband files for spousal benefits from the Social Security Administration.
Spousal benefits are 50% of the higher-earning spouse’s “Principal Insurance Amount” (PIA) – benefits at full retirement age. For example, if you receive $3,000 a month in Social Security, you may receive up to $1,500 a month in spousal benefits if you wait until your spouse reaches full retirement age.
While married couples are eligible to claim spousal benefits at age 62, doing so reduces their lifetime benefit by a certain percentage for each month before they die at age 67. Primary Insurance Amount of Higher Earning Spouse. That is, if you claim spousal benefits at age 62, you will receive $32.50 for every $100 in first spouse PIA.
Unfortunately, delaying spousal benefits past full retirement age does not backfire. Spousal benefits do not increase if you claim after age 67.
The SSA does this calculation automatically when you apply for benefits. If you are entitled to your own retirement benefits and spousal benefits, the SSA will pay whichever is larger. If you start receiving benefits based on your own earnings history, you can switch payments to spousal benefits after your spouse retires. This is typically done if your spouse’s benefits exceed your own retirement benefits.
And if you need help calculating Social Security benefits and deciding when to claim them, at a Financial advisor.
Once eligible for Social Security spousal benefits, the recipient must apply for those benefits even if they begin receiving their own retirement benefits.
To understand how this works, let’s look at our hypothetical situation above. Assume you expect to collect $3,000 a month from Social Security throughout retirement.
In all cases, your wife’s spousal benefit will be based on your $3,000 primary insurance amount and her age. For example, if you retire at 67, here’s how much your spouse’s benefits will be based on the age she chooses to claim:
62$975 per month ($3,000 * 0.325)
67$1,500 per month ($3,000 * 0.5)
70$1,500 per month ($3,000 * 0.5)
As you can see, claiming spousal benefits at age 62 would leave her with only $975 per month, which is 32.5% of the original insurance amount. Once she reaches her full retirement age, she will be eligible to receive the maximum spousal benefit of $1,500 per month. Before filing for Social Security, Consider talking to a financial planner To discuss how your benefits will affect your retirement income plan.
But what if the wife also has her own retirement benefits? How do spousal benefits affect the amount you end up collecting?
For example, say your wife is eligible for $1,200 in retirement benefits based on her own earnings history. Because her own pension is less than her spouse’s, SSA pays the latter. And if she qualifies for $1,600 based on her own work history, the SSA simply pays that amount.
Spousal benefits are Social Security payments made based on the earnings record of the higher-earning spouse. A spouse can receive up to 50% of their spouse’s Social Security benefits at full retirement age, but these payments are not made immediately. As with all benefits, you must file for SSA to receive them.
Social Security plays an important role in many Americans’ retirement plans. In fact, two people collecting the maximum benefit in 2024 could bring in nearly $117,000 in household income. With that in mind, here they are. Some strategies to increase social security For you and your spouse.
A financial advisor can help you strategize for Social Security and build a comprehensive retirement plan. Finding a financial advisor It should not be difficult. SmartAsset’s free tool It matches you with up to three vetted financial advisors who serve your area, and you can make a free introductory call with your advisor matches to determine which one you feel is right for you. If you are ready Find a mentor Who can help you achieve your financial goals, start now.
Keep an emergency fund handy in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t exposed to high volatility, like the stock market. The trade-off is because the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.
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