Social Security is a cornerstone of retirement income for millions of Americans, and its importance can’t be overstated. For married couples, however, there are specific rules and opportunities that don’t apply to single recipients. Here are four little-known Social Security rules that married retirees should understand.
1. Claim Benefits Based on Your Partner’s Earnings Record
For many people, Social Security benefits are based on their career earnings. The more you earn, the higher your benefits, as you pay more into the system. However, not everyone has a consistent or high income.
Some may have been stay-at-home parents, have gaps in employment due to health reasons, or have had periods of unemployment. In these cases, the individual’s Social Security benefit may be minimal.
Thankfully, Social Security offers spousal benefits. If you’re married, you can claim benefits based on your partner’s earnings record. You could be eligible for up to 50% of your spouse’s Primary Insurance Amount (PIA), which is the monthly amount they would receive at full retirement age (FRA).
To qualify, you must meet the following criteria:
Be married for at least one year.
Your spouse must currently be receiving benefits.
You must be at least 62 years old (or be caring for a child under 16 or with a disability that began before age 22).
2. Divorcees Can Also Claim Spousal Benefits
You don’t need to be currently married to claim spousal benefits based on your ex-spouse’s earnings. If you were married for at least 10 years and are currently unmarried, you can still claim spousal benefits. Even if your ex-spouse remarries, it won’t affect your eligibility for benefits.
The same requirements apply: you must be at least 62 years old and meet the other eligibility criteria.
3. Claiming Spousal Benefits Early Will Still Reduce Monthly Payments
If you claim spousal benefits before your full retirement age (FRA), your monthly benefit will be permanently reduced. However, the reduction is a bit steeper for spousal benefits than for standard benefits.
Here’s a breakdown of how the reductions compare, assuming your FRA is 67 (for anyone born in 1960 or later):
| 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% |
For example, if your spouse’s PIA is $2,000, you’d be eligible for $1,000 in spousal benefits at FRA (age 67). If you claim at age 63, however, your spousal benefit would drop to $700—a significant reduction.
It’s important to note that, unlike standard Social Security benefits, you won’t receive delayed retirement credits if you delay claiming spousal benefits past your FRA.
4. Spousal Benefits Convert to Survivors Benefits Upon Your Spouse’s Death
If you’re receiving spousal benefits and your spouse passes away, your benefits will generally be converted to survivors benefits. Survivors benefits can range from 71.5% to 100% of your deceased spouse’s benefits, which means your benefit could increase significantly.
Since spousal benefits are typically only up to 50% of your spouse’s benefit, survivors benefits will boost your monthly payout.
To qualify for survivors benefits, you must meet the following requirements:
Be at least 60 years old (50 to 59 if you have a disability).
Have been married for at least nine months before your spouse’s death.
You must not remarry before age 60 (50 if you’re disabled).
The $23,760 Social Security Bonus Most Retirees Overlook
If you’re like most retirees, you may be a few years behind on your retirement savings. But there are little-known Social Security strategies that can ensure a boost in your retirement income, potentially adding up to $23,760 over your lifetime.
Taking advantage of Social Security secrets like maximizing spousal benefits, optimizing your claiming strategy, or utilizing other available options could make a big difference in your retirement finances.
