Here's Why Your Social Security Spousal Benefit May Be Smaller Than Expected

Generally speaking, people earn Social Security benefits in retirement by working long enough and paying taxes on their wages. But there's way to get Social Security even if you never worked.

Social Security pays spousal benefits to older Americans, and you can qualify based on a current or former spouse's record. You may also want to file for Social Security spousal benefits if your spouse earned a lot more money than you, as your spousal benefit may be more generous than the benefit you get based on your own wage history.

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But it's important to have realistic expectations about how much income you'll get in spousal benefits. And because of one rule that's specific to spousal benefits, your monthly checks may end up being smaller than expected.

You can't grow a spousal benefit

When you're claiming Social Security based on your own earnings record, there's a big incentive to delay your claim past full retirement age. For each year you do, until you turn 70, your monthly benefits get an 8% boost.

But while you can accrue delayed retirement credits in that situation, those credits don't apply to spousal benefits. Or, to put it another way, there's no sense in delaying a spousal benefit claim past full retirement age, because it won't result in any more monthly income for you.

When you're claiming spousal benefits, the maximum you can get is 50% of your spouse's Social Security benefit at their full retirement age. And that assumes you wait until your own full retirement age to file. Filing early will reduce your spousal benefit the same way it would reduce a benefit claimed on your own earnings record.

This all probably sounds confusing, so let's break it down. Let's assume your spouse is eligible for a $2,800 monthly Social Security benefit at their full retirement age. This means the maximum amount you can claim in spousal benefit form is $1,400 a month.

You'll get that $1,400 a month if you wait until your own full retirement age to file. If you file early, which you can do starting at age 62, your spousal benefit will be reduced.

Know what to expect from spousal benefits

The spousal benefits you collect from Social Security may play a big role in your retirement finances. So it's important to know the rules and to understand how much money to anticipate.

You should also talk to your spouse about their Social Security filing age. The claiming decisions they make could impact your ability to get spousal benefits sooner rather than later.

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