Social Security is an essential component of many Americans’ retirement plans, serving as a major source of income for nearly six in ten retirees according to a Gallup poll from April 2021.
To maximize benefits, it is crucial to understand the basics of spousal Social Security benefits. Here are three important details that all retired couples should know:
1. Eligibility: Unlike claiming Social Security based on your own earnings record, there is no requirement for you to have worked at all when claiming spousal benefits.
As long as you’re married to someone who qualifies for benefits on their own earnings record for at least one year, you can receive a spousal benefit.
2. Work history: If you do qualify for benefits with a limited work history of your own, you may still be able to receive a higher benefit by claiming on your spouse’s record.
However, this decision becomes more complicated as there are no delayed retirement credits for spousal benefits like those earned for Social Security benefits based on your own earnings record.
3. Timing: Planning to claim spousal benefits requires careful consideration of when to apply. To receive the maximum benefit, it is recommended that couples plan to claim spousal benefits when the higher earner reaches their full retirement age (FRA).
The FRA varies depending on birth year and ranges from 65 to 67 for those born between 1948 and 1960.
It’s important to note that there are other factors to consider, such as survivor benefits, which can provide a larger benefit for the surviving spouse if their partner passes away before them.
However, claiming survivor benefits early may reduce the amount received. It is recommended that couples consult with a financial planner to determine the best strategy for their unique situation.
