For married couples planning their retirement, understanding spousal Social Security benefits can seem like a labyrinth. This week, I'm answering a listener's question about how spouses can maximize their Social Security benefits.
Join me as I break down the key rules, eligibility requirements, and strategies that can help you and your spouse make the most of your benefits over your lifetimes.
Whether you're nearing retirement or still a few years away, I can help you understand primary insurance amounts, full retirement age, and what happens if one spouse claims benefits early.
If you want to ensure you and your loved one have a smart plan for Social Security, this episode offers essential insights and actionable advice.
Spousal benefits exist to ensure that partners in a marriage—including those who spent little or no time in the workforce—can still access a stable retirement income.
If you're married, you could be eligible to receive up to half of your spouse's full retirement benefit, commonly referred to as their Primary Insurance Amount (PIA).
This benefit is designed for spouses who don't qualify for a significant benefit on their own due to having spent less time in the workforce, perhaps because they were caring for the home or raising a family.
At a minimum, every spouse can claim at least 50% of their partner's PIA, but only if their own benefit is less than this amount. This safety net helps ensure that lower-earning spouses are not left without Social Security support in retirement.
To collect a spousal benefit, several conditions must be met:
For example, in the listener scenario discussed in the episode, the wife began her benefit at 64. Because she started before her own full retirement age, she is only eligible for 37.5% of her husband's benefit—less than half.
Determining when to claim Social Security is a nuanced decision:
Higher-Earning Spouse Delays, Lower-Earning Spouse Claims Early: Often, the lower-earning spouse might claim their own benefit early, while the higher earner waits until full retirement age or even 70 to claim. This maximizes the survivor benefit for the lower earner, as a widow or widower can "step up" to the deceased spouse's higher benefit.
Cost of Living Adjustments (COLA): Increases in Social Security benefits due to COLA apply both to individual and spousal benefits. Because COLA is a percentage, it may cause dollar amounts to shift, but it will not change the eligibility for claiming spousal benefits unless there is a significant gap.
Survivor Benefits: If the higher earner passes away, the surviving spouse can "take over" the higher benefit. This makes it advantageous for the higher earner to delay benefits if the couple is concerned about long-term financial security.
How to Apply for Spousal Benefits
Applying is straightforward and can be done online at SSA.gov, by calling the Social Security office, or in person. Be prepared to provide proof of age, a marriage certificate, and possibly your spouse's work records.
Maximizing Social Security as a couple comes down to knowing the rules, timing your decisions, and using strategic thinking to boost your household's retirement income.
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