Spousal Benefits from Social Security System

Spousal benefits in the context of Social Security refer to funds granted based on your partner's work history, rather than your own. Under certain circumstances, even after divorce, you might still qualify for these benefits.

Typically, your Social Security retirement benefit is based on your 35 best-earning years. However, if your spouse's income was significantly higher or your work record is limited, spousal benefits could provide you with more income. Keep reading to learn about the qualifying criteria and the methodology used by Social Security to calculate your payments.

To be eligible for spousal benefits if you're currently married, the following three conditions must be met:

You've been married for at least a year.
You're at least 62, or you're caring for your spouse's disabled child younger than 16.
Your spouse already receives retirement benefits.

If you're 62 and your spouse hasn't started receiving benefits yet, you can collect your own retirement benefit sooner and then switch to their higher benefit once they file. This is a common strategy for married couples planning their Social Security.

However, until one of the following conditions is met, you can't collect spousal benefits and switch to your own higher benefit:

You were born before Jan. 2, 1954.
You qualify for Social Security disability benefits.
You care for your spouse's child younger than 16 or disabled.

Social Security will provide you with either your own retirement benefit or spousal benefits, but not both.

As with retirement benefits, spousal benefits may be taxable if your income exceeds specific thresholds. It's essential to plan for your taxes in retirement, regardless of the type of benefit you expect to receive.

Spousal benefits are based on your spouse's primary insurance amount, or the amount they’re eligible for at full retirement age (FRA). Depending on your age when you begin receiving Social Security benefits, you can receive 32.5% to 50% of your spouse's benefit.

If you wait until your full retirement age – which is 67 if you were born in 1960 or later – you'll qualify for the 50% maximum. But if you claim as soon as you're eligible at 62, you'd only receive 32.5% of their full benefit.

When you collect your own retirement benefits, you could earn 8% delayed retirement credits for each year you delay until you reach your benefit cap at age 70. However, you can't earn delayed retirement credits when you're collecting spousal benefits. You'll receive your maximum benefit once you reach full retirement age.

You also won't earn additional benefits if your spouse waits past their full retirement age. The rules are different for surviving spouses, which we'll discuss later.

If you collect spousal benefits, it won't affect the benefits your spouse receives. Their benefit is determined solely by their primary insurance amount and when they claim.

In the past, couples often maximized their Social Security benefits by collecting spousal benefits first and then switching to their own retirement benefits to receive credits for delaying. However, the Bipartisan Budget Act of 2015 eliminates this option unless you were born on or before Jan. 2, 1954, have a disability and also qualify for spousal benefits, or you care for your spouse's child who is younger than 16 or has a disability.

Divorced spouses

If you're a divorced spouse, you might still be eligible for spousal benefits. The following conditions must apply for you to qualify as a divorced spouse:

Your marriage lasted at least 10 years.
You've been divorced for at least two years.
You're not currently married.

Divorced spouses’ benefits are identical to those received by current spouses. The maximum divorced spouse benefit is 50% of your former spouse's primary insurance amount if you wait until full retirement age. If you claim early, you'll receive as little as 32.5%.

To collect divorced spouse benefits, both you and your ex-spouse must be at least 62. However, unlike with benefits paid to current spouses, divorced spouse benefits don't require your ex-spouse to be currently receiving benefits. As long as they're at least 62 and have accrued the minimum 40 work credits, you can collect spousal benefits if you meet the other requirements.

If you qualify for retirement benefits based on your own work record, Social Security will use your earnings to determine your benefits. Then, your ex-spouse's record will be used to qualify you for a larger benefit if applicable.

If your former spouse claims Social Security using your record, your benefits won't be affected. There will also be no effect on your current spouse's Social Security.

Upon your spouse's death, you might be eligible for survivor benefits. You may also be eligible for your ex-spouse's survivor benefits if you were married for at least 10 years or if you care for their child younger than 16 or disabled.

Survivor benefits can be as much as 100% of the benefit the deceased worker was receiving when they passed away. If the person died before claiming benefits, the survivor benefit is based on their primary insurance amount.

To be eligible for the maximum advantage, you need to hold out until your complete retirement era. Nevertheless, you can request benefits from age 60 (or 50 if handicapped). If you started survivor benefits directly after turning 60, you'd just get 71.5% of your late spouse's benefit. Subsurviving spouses or ex-spouses caring for a kid under 16 or suffering from a disability can obtain 75% of the deceased worker's benefit.

If you remarry before age 60 (or 50 if handicapped), you won't receive survivor benefits. Nonetheless, if you remarry after age 60 (or 50 if handicapped), remarrying won't put your survivor benefits at risk.

The main points on spousal benefits

Spousal benefits can amplify your Social Security if your spouse generates considerably more than you. However, if you've spent most of your working years employed, you might still be eligible for a more substantial benefit on your own. If you're pondering how much you'd be entitled to based on your individual record or your spouse's, you can establish a my Social Security account to gauge your benefits and initiate your retirement planning.

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If your work record is limited or your spouse's income is significantly higher, you might consider collecting spousal benefits from Social Security for more financial stability in retirement. Under certain circumstances, even after divorce, you may still qualify for these benefits if your marriage lasted at least 10 years.

Just like retirement benefits, spousal benefits may be subject to taxation if your combined income exceeds specific thresholds during retirement. Therefore, it's essential to plan your finances and potential tax obligations when receiving spousal benefits.