Spousal Social Security Benefits: 3 Things Every Retired Couple Should Know

Social Security has been one of America’s most important social programs for decades. It provides vital income for millions of Americans across the country, especially in retirement. After paying Social Security taxes for several years, beneficiaries receive compensation through a sort of financial safety net.

But these benefits are not limited to those who have worked and paid taxes for several years. For example, the Social Security Administration allows spousal benefits to support non-working or low-income spouses in retirement. Here are three things couples who are nearing retirement or planning to retire and are doing financial planning need to know about Social Security spousal benefits.

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1. How Social Security spousal benefits apply

The Social Security Administration generally calculates a beneficiary’s monthly benefit using a formula that takes into account the 35 highest earning years. However, if your spouse is over age 62 or caring for a child under 16 or a disabled child, you may be eligible to receive Social Security benefits based on your spouse’s earnings record.

Assuming the person claiming spousal benefits has reached full retirement age, they may also receive 50% of their spouse’s primary insurance amount.

For example, if Spouse A’s earnings records show a benefit of $2,000 per month at full retirement age, Spouse B may also receive up to $1,000 per month. The exact amount will depend on the age at which Spouse B claims benefits.

2. Impact of claiming benefits early or late

Your full retirement age is one of the most important numbers related to Social Security because it tells you when you can expect to receive the basic insurance amount. However, you do not need to claim benefits at your full retirement age. You can claim early (lower payments) or late (higher payments).

Claiming Social Security benefits early affects your spouse and partner’s ability to receive spousal benefits in a variety of ways.

First, looking at those who claim based on work history, benefits are reduced by five-ninths of 1% for each month prior to full retirement age (up to 36 months). The benefit is further reduced by 5/12 of 1% each month thereafter. For example: If a person with a full retirement age of 67 claims benefits at age 62, their monthly benefit will be reduced by 30% from the basic insurance amount.

For those receiving spousal benefits, it is reduced by 25/36 by 1% per month for up to 36 months prior to full retirement age, and by 5/12 by 1% per month thereafter. So, if someone with the same full retirement age (67) claims spousal benefits at age 62, their check will be reduced by 35%.

Although benefits generally increase as you move past full retirement age, these deferred retirement credits do not apply to spousal benefits.

3. What happens if my spouse dies?

Social Security spousal benefits and survivor benefits can be closely linked, extending important financial support even after your partner dies.

If you claim spousal benefits when your partner dies, Social Security converts your spousal benefits to survivor benefits. Survivor benefits allow you to receive up to 100% of your deceased spouse’s benefits, including any deferred retirement credits earned before your deceased spouse’s death. A widow or widower can receive survivor benefits starting at age 60 (or 50 if disabled), but as with spousal benefits, if you claim before your full retirement age, your survivor benefit will be reduced.

You cannot receive spousal benefits and survivor benefits at the same time; you can only receive the higher of the two. Spousal benefits are allowed up to 50% of the partner’s primary policy amount, so survivor benefits are usually the higher-paying option.