5 Little-Known Social Security Rules All Married Retirees Should Know
Key Points
You're eligible to receive up to 50% of your spouse's benefit by claiming spousal benefits.
Claiming spousal benefits early reduces your amount, but there's no increase by delaying past your full retirement age.
You can claim spousal benefits if you're divorced, as long as you were married for at least 10 years.
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Social Security has been a financial lifeline for tens of millions of Americans in retirement since it was established. That simple fact has made the program worthwhile, but there's no denying that it's far from the easiest program to fully understand because of all the moving parts.
It would be virtually impossible for someone to memorize all the nuances of Social Security, which is why focusing on the areas that are relevant to you and your life is a smart move. For married couples, there are a few Social Security rules that don't apply to someone who's single. Below are five things to know in case they're relevant to your personal situation.
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1. You can claim benefits based on your spouse's work history
How much you receive in Social Security benefits largely comes down to how much you earn throughout your career and how much you've paid in Social Security payroll taxes. However, this puts people with an inconsistent or short work history at a disadvantage.
That's why Social Security offers spousal benefits, which allow you to claim benefits based on your spouse's work history instead. When you claim spousal benefits, you can receive up to 50% of your spouse's primary insurance amount (PIA), which is how much they would receive by claiming at their full retirement age.
To qualify, the following must be true:
- Your spouse must currently be receiving benefits
- You must be married for at least one year
- You must be 62 years old (or any age if you have a child who is younger than 16 in your care or has a disability)
2. Divorcees can claim spousal benefits
Yes, they're spousal benefits, but you don't actually have to be a current spouse and married to be eligible to claim them. If you were married to someone for at least 10 years but got a divorce, you're still able to claim spousal benefits.
To qualify for spousal benefits as a divorcee, you must currently be unmarried. If you're receiving spousal benefits as a divorcee and then remarry, the spousal benefits will automatically be cut off. If your spouse remarries, you're still eligible to claim benefits, as long as you're at least 62 years old.
If you have been divorced for at least two years, you can claim spousal benefits even if your ex-spouse is still working and hasn't filed for Social Security yet, as long as they're 62.
3. Spousal benefits will also be reduced by claiming early
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Like standard benefits, if you claim spousal benefits before your full retirement age, your monthly benefit will be reduced based on how far away you are from your full retirement age. A key difference, though, is by how much spousal benefits are reduced.
Claiming spousal benefits early reduces them by 25/36th of 1% monthly, up to 36 months. Every additional month after that reduces benefits by 5/12 of 15% monthly. Assuming your full retirement age is 67, below is how much you can expect your reductions to be based on claiming age:
| Claiming Age | Standard Benefit Reduction | Spousal Benefit Reduction |
|---|---|---|
| 62 | 30% | 35% |
| 63 | 25% | 30% |
| 64 | 20% | 25% |
| 65 | 13.3% | 16.7% |
| 66 | 6.7% | 8.3% |
Data source: Social Security Administration.
To see it play out, let's assume your spouse's PIA was $2,400, making you eligible to receive $1,200 if you claim at your full retirement age. If you claimed spousal benefits at 62, you'd only be eligible to receive $780. If you claimed at 64, you'd only be eligible to receive $900.
4. Spousal benefits don't receive delayed retirement credits
If you delay claiming standard benefits past your full retirement age, your monthly benefit is increased by 2/3 of 1% monthly, or 8% annually, until you turn 70 years old. These are called delayed retirement credits (DRCs).
Unfortunately, there are no DRCs for spousal benefits. Once you reach your full retirement age, whatever your monthly benefit is, that is the maximum amount you'll receive. That's why there's no reason to delay claiming spousal benefits past then.
5. Spousal benefits are converted to survivor benefits when a spouse dies
If your spouse passes away while you're receiving spousal benefits, your benefits are generally converted to survivor benefits, which makes you eligible to receive between 71.5% to 100% of your deceased spouse's benefits. To qualify for survivor benefits, you must meet the following three criteria:
- Be at least 60 years old (50 to 59 if you have a disability).
- Had been married for at least nine months before your spouse's death.
- Didn't remarry before age 60 (50 if you have a disability).
Since spousal benefits are only up to 50% of your spouse's benefits, the conversion to survivor benefits results in an increased benefit.
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