Navigating Social Security benefits can be complex, especially for married couples seeking to maximize their retirement income. Understanding the rules governing spousal benefits is essential.
Here are seven key Social Security rules that married couples should be aware of:
1. Spousal Benefits Eligibility
A spouse can receive benefits based on their partner’s work record if they are at least 62 years old or of any age if caring for a qualifying child under 16 or disabled.
The maximum spousal benefit is up to 50% of the worker’s primary insurance amount (PIA) if claimed at full retirement age (FRA). Claiming before the FRA results in a reduced benefit.
2. Deemed Filing Requirement
If eligible for both retirement and spousal benefits, you must apply for both simultaneously, a process known as “deemed filing.”
This rule ensures you receive the higher benefit amount but prevents the strategy of filing for one benefit while delaying the other to accrue delayed retirement credits.
3. Impact of Early Retirement
Choosing to begin benefits before reaching the FRA leads to permanent reductions.
For spousal benefits, the reduction is 25/36 of one percent for each month before FRA, up to 36 months, and 5/12 of one percent for each additional month.
For example, starting benefits 36 months early results in a 25% reduction.
4. No Marriage Penalty
There is no marriage penalty in Social Security; each spouse receives benefits based on their work record or as a spouse, whichever is higher.
For instance, if one spouse’s benefit is $1,200 and the other’s is $1,400, the couple receives $2,600 per month in retirement benefits.
5. Divorced Spouse Benefits
Divorced individuals may be eligible for spousal benefits based on an ex-spouse’s work record if the marriage lasted at least 10 years, they are unmarried, and they are not entitled to a higher benefit on their record.
Importantly, claiming these benefits does not affect the ex-spouse’s benefits.
6. Survivor Benefits
When a spouse passes away, the surviving spouse can receive survivor benefits, which can be up to 100% of the deceased spouse’s benefit, depending on the survivor’s age. If the survivor’s benefit is lower, they will receive the higher survivor benefit.
It’s crucial to inform the Social Security Administration (SSA) promptly after a spouse’s death to adjust benefits accordingly.
7. Remarriage Considerations
Remarrying can affect Social Security benefits. Generally, if you remarry, you cannot receive benefits as a spouse or surviving spouse on your former spouse’s record unless your subsequent marriage ends (through annulment, divorce, or death).
However, if you are already receiving benefits on your former spouse’s record, remarriage does not affect those benefits.
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