Spousal and Survivor Benefits

When planning for retirement, it’s easy to focus solely on your own Social Security benefits. However, if you’re married - or were married - there’s more to the picture. Spousal and survivor benefits are a critical piece of the Social Security system that can significantly increase the total income available to your household. These benefits are designed to support lower-earning spouses or surviving partners, helping ensure your family has financial stability throughout retirement.

Social Security spousal benefits are designed to provide income to individuals who may not have worked enough to qualify for their own benefits or earned significantly less than their spouse. The basic idea is that if one spouse was the primary earner, the other could still receive a portion of the higher earner’s benefit.

Here’s how it works: if you’re eligible for spousal benefits, you can receive up to 50% of your spouse’s benefit at Full Retirement Age. This applies even if you’ve never worked or didn’t earn enough credits to qualify for your own Social Security benefit. If you’re eligible for both your own benefit and spousal benefits, you’ll receive the higher amount - but not both.

When Can You Claim Spousal Benefits?

You can start claiming spousal benefits as early as age 62, but like regular Social Security benefits, claiming early reduces the amount you receive. If you claim spousal benefits before your Full Retirement Age (FRA), the benefit will be reduced by a fraction each month. For example, if your FRA is 67 and you claim at 62, your spousal benefit could be reduced by as much as 30%.

One important thing to remember is that your spouse must already be receiving their benefits inn order for you to claim spousal benefits. If your spouse has decided to delay claiming until after their FRA, you’ll need to wait until they start receiving their benefits before you can claim spousal benefits.

How Spousal Benefits Are Calculated

The spousal benefit you receive is based on your spouse’s Primary Insurance Amount (PIA)—the benefit they’re entitled to at their Full Retirement Age. If your spouse claims early, their benefit will be reduced, and your spousal benefit will be based on that lower amount.

Let’s say your spouse’s PIA is $2,000. If they claim at their FRA, you could be eligible for up to $1,000 in spousal benefits (50% of $2,000). However, if your spouse claims early and their benefit is reduced to $1,600, your spousal benefit would be based on the $1,600 figure, meaning you would receive $800 instead of $1,000.

Maximizing Spousal Benefits

If you’re married, coordinating your claiming strategies is one of the most effective ways to maximize your household’s Social Security income. Here are some key points to keep in mind:

• Delay Your Spouse’s Claiming - If the higher-earning spouse delays claiming their benefits until after Full Retirement Age, not only will their benefits increase by about 8% per year up to age 70, but the spousal benefit will also be based on a higher Primary Insurance Amount. This can provide a larger benefit for both spouses.

• Claim Your Benefit First - If you’re eligible for Social Security benefits based on your own work record, it may make sense to claim your benefit first while waiting to claim spousal benefits. If your own benefit is lower, you can switch to spousal benefits once your spouse begins receiving theirs, maximizing the overall income for your household.

• Avoid Claiming Spousal Benefits Early - Just as claiming your own benefits early reduces the monthly amount, claiming spousal benefits before Full Retirement Age can result in a permanent reduction. If possible, wait until FRA to claim spousal benefits to receive the maximum amount.

Survivor Benefits: Protecting Your Family

If your spouse passes away, you may be eligible for survivor benefits, which can help replace lost income. Survivor benefits are designed to provide financial support to the surviving spouse by allowing them to receive the higher of their own benefit or their deceased spouse’s benefit.

Survivor benefits are typically based on the deceased spouse’s Social Security benefit, and you can begin receiving these benefits as early as age 60 (or age 50 if you are disabled). However, like spousal benefits, claiming before your Full Retirement Age will result in a reduced benefit. If you wait until your FRA, you can receive 100% of your spouse’s benefit.

One key advantage of survivor benefits is that they aren’t limited to 50% of the deceased spouse’s benefit—surviving spouses can receive the full amount. This can be a crucial lifeline, especially if the deceased spouse was the primary earner.

Coordinating Survivor Benefits with Your Own

If you’re eligible for both your own Social Security benefit and survivor benefits, you can choose to claim one first and switch to the other later. For example, you could claim survivor benefits early and let your own benefit grow until age 70, when it reaches its maximum amount. Alternatively, you could claim your own benefit first and switch to survivor benefits later if they offer a higher payout.

This flexibility allows you to maximize your total Social Security income over your lifetime. However, it’s essential to carefully plan the timing of when you claim each benefit to make the most of the available options.

What Happens After a Divorce?

Spousal and survivor benefits aren’t just for currently married couples—if you’re divorced, you may still be eligible for benefits based on your ex-spouse’s work record. To qualify for divorced spousal benefits, you must meet the following conditions:

• You were married for at least ten years.
• You are currently unmarried.
• Your ex-spouse is eligible for Social Security benefits.
• You are age 62 or older.

If these conditions are met, you can claim divorced spousal benefits just as you would if you were still married. You can receive up to 50% of your ex-spouse’s benefit, and the good news is that this doesn’t reduce the benefit your ex-spouse or their new spouse receives.

Similarly, if your ex-spouse passes away, you may be eligible for survivor benefits based on their work record. These benefits can help provide financial stability even after a divorce, ensuring you have access to the income you need in retirement.

Key Points

• Spousal benefits provide up to 50% of your spouse’s benefit at Full Retirement Age, and claiming early results in reduced benefits.

• Survivor benefits allow you to receive up to 100% of your deceased spouse’s benefit, but claiming before FRA will result in a reduced amount.

• Delaying your spouse’s benefits can increase the amount you receive in both spousal and survivor benefits.

• Divorced individuals can still qualify for spousal and survivor benefits based on their ex-spouse’s work record as long as they meet specific criteria.

• Coordinating spousal and survivor benefits with your own can help maximize total Social Security income for your household.

The Takeaway

Spousal and survivor benefits are valuable for maximizing your family’s Social Security income. By understanding how these benefits work and timing your claims strategically, you can ensure that both you and your spouse receive the highest possible benefit throughout retirement.