Why Did They Cut My Wife's Social Security Benefit in Half, and What Should We Do Next?

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You depend on your Social Security checks to stay financially secure in retirement, so it's natural to be worried about anything that could jeopardize them, whether that's benefit taxes or the possibility of the program running out of money. Even if you have savings of your own, nothing quite beats the peace of mind that comes with knowing you have a monthly check coming no matter what.

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That's why it can be really alarming to receive a notice that your benefit's about to get cut in half. That's what happened to one married couple a few months ago after they'd been on Social Security for 10 years. The couple took to Reddit (NYSE: RDDT), asking for advice on how to proceed:

Why did they cut my wife's benefits and what can we do?
byu/BigChemist-1591 inSocialSecurity

Fortunately, their story had a happy ending. But it still caused them a lot of stress. Here's what you ought to know if you ever get a similar notice about an unexpected benefit reduction.

Image source: Getty Images.

Review the letter carefully

In the case of the Reddit couple, they received a notice that the wife's spousal Social Security benefits would unexpectedly be cut in half. They'd both applied for the program a decade earlier when they were at their full retirement ages (FRAs). Her spousal benefit -- equal to half her partner's retirement benefit -- was worth more than her own retirement benefit, so that's the amount she'd been receiving.

The letter they got said that her spousal benefit would be cut and that she had 60 days to appeal the decision. The couple was left confused and worried.

If this ever happens to you, the first thing to do is examine the letter carefully to make sure it's actually from the Social Security Administration (SSA). Social Security scams exist, and they're always evolving. Threatening to reduce or stop benefits is a common tactic scammers use to trick you into handing over your personal information so they can "fix" it for you.

If you're not sure whether the letter you've received is real, it's best to reach out to the SSA directly for clarification. Do not use any phone numbers, websites, or email addresses provided in the letter. Instead, look up your local Social Security office's contact information online and use that.

Understand the interplay between retirement and spousal benefits

In the case of the couple in the Reddit post, the wife was dually entitled to benefits. That means she worked long enough to qualify for a retirement benefit on her own, and she was also entitled to a spousal benefit due to her marriage. You may have heard that Social Security only gives you the larger of the two in this case, but that's not exactly true.

The reality is, if you qualify for a retirement benefit, you always get it. But you might get a portion of your spousal benefit as well if that's higher than your retirement benefit. For example, say your own retirement benefit is $1,000 per month and your spousal benefit is worth $1,500 per month. Social Security would give you $1,000 of your own retirement benefit and $500 of your spousal benefit, for a total of $1,500 per month.

The letter the couple received only said her spousal benefit was decreasing. It didn't say that her monthly checks would decrease, and after a little checking with the SSA, the couple found out that it wouldn't.

While the Reddit post doesn't go into the details, it's possible the woman's own retirement benefit increased this year --- perhaps as a result of the Social Security Fairness Act. This would've decreased the spousal benefit she received, but her new, larger retirement benefit would make up the difference, so her checks would stay the same size.

If you think this is what's happening to you, it's still worth following up with the SSA to verify. You may also want to keep an eye out for more letters detailing changes to your retirement benefit.

If all else fails, file an appeal

Whenever there's a change to your Social Security benefits, you'll have the opportunity to file an appeal within 60 days if you feel the change is based on inaccurate information. The letter you receive should give you instructions on how to do this. You can also learn more about appeals on the Social Security Administration's website.

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Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.