Spousal Social Security Benefits: 5 Things All Retired Couples Should Know

Social Security plays a key role for many, but the actual amount people receive varies widely because it largely depends on career earnings. Social Security takes the 35 years when your earnings were the highest, adjusts them for inflation, applies a formula, and then voilà -- you have your benefit amount.

The bad news is that this process could work against someone without a traditional work history. The good news is that Social Security offers spousal benefits, which help millions of people. If you're considering going this route, here are five things you should know about them.

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1. You can claim benefits based on your partner's earnings record

Spousal benefits allow someone to claim benefits based on a spouse's earnings record. By claiming spousal benefits, you're eligible to receive up to 50% of your spouse's primary insurance amount (PIA), which is that person's monthly base benefit at full retirement age (FRA). For example, if your spouse's PIA was $2,000, you would be eligible to receive up to $1,000.

To qualify, the following generally must be true:

1. The primary claiming spouse must currently be receiving benefits.
2. You must be married for at least one year (unless you're the parent of your spouse's child).
3. You must be at least 62 years old, caring for a child under age 16, or caring for a child with a disability that began before age 22.

2. Divorcees can claim spousal benefits

If you're divorced, you're still eligible for spousal benefits as long as the following is true:

• You were married for at least 10 years.
• You have not remarried.
• You have been divorced for at least two consecutive years (only applicable if your ex-spouse is eligible but hasn't claimed benefits yet)

Unlike standard spousal benefits, the main earner doesn't need to be collecting benefits for you to claim spousal benefits. You can claim them at any time, as long as you're at least 62 years old

3. Claiming spousal benefits early has a greater reduction than standard benefits

Standard and spousal benefits have one thing in common: Claiming them before your full retirement age will reduce your monthly benefit. The difference, however, is by how much. Claiming spousal benefits early reduces your amount by a greater percentage than claiming standard benefits early.

Assuming your full retirement age is 67 -- which is anyone born in 1960 or later -- here's how much your monthly benefits would be reduced, based on your claiming age:

Source: IRS. Chart by author.

If your spouse's PIA was $2,000 (making you eligible to receive up to $1,000), claiming spousal benefits at 64 would mean only receiving $750. Claiming at 62 would mean only receiving $650.

4. Spousal benefits don't receive delayed retirement credits

If you delay claiming standard benefits past your full retirement age, you'll receive delayed retirement credits, which increase your monthly benefit by 2/3 of 1% monthly, or 8% annually.

Unfortunately, this isn't the case with spousal benefits. There is no increase after your full retirement age, so FRA is the latest age at which you should claim.

You're also only eligible for half of your spouse's PIA, even if your spouse delays benefits and gets a larger monthly benefit. For example, if a spouse's PIA is $2,000, and that individual delays benefits long enough to receive $2,200, you would still only be eligible for up to $1,000.

5. Spousal benefits are converted when the primary spouse dies

If the primary spouse passes away while someone is receiving spousal benefits, those benefits are converted to survivors benefits. This makes the surviving partner eligible to receive up to 100% of the deceased's benefit, including any delayed retirement credits that were earned.

Continuing our above example, you would go from a $1,000 monthly spousal benefit to up to a $2,200 survivors benefit.

You can begin receiving survivors benefits at age 60 -- or 50 if you're dealing with a disability, as long as you were married at least nine months before the primary spouse passed away.

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