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What Are Social Security Spousal Benefits?

Social Security provides spousal benefits to eligible individuals based on their spouse’s earnings record. These benefits are designed to ensure financial stability for spouses who may not have worked or earned significantly lower wages than their partners.

Who Qualifies for Spousal Benefits?

To qualify for spousal benefits, you must meet the following criteria:

• You must be at least 62 years old.
• Your spouse must be already receiving Social Security retirement or disability benefits.
• You must have been married for at least one year.
• The benefit amount you would receive based on your own work record must be less than what you would receive through spousal benefits.

If you meet these criteria, you may be eligible for up to 50% of your spouse’s full retirement age (FRA) benefit. However, if you claim spousal benefits before your own FRA, your monthly payments will be permanently reduced.

Understanding Spousal Benefits

Many married couples want to know how to make the most of spousal benefits to ensure financial security in retirement. Your strategy will depend on your employment status, earnings history, and claiming age. 

Social Security Benefits can be confusing. We recommend that you work with a financial professional who is familiar with them to understand the best plan for you and your family.

Spousal Benefits for a Non-Working Spouse

If you have never worked or you have earned significantly less than your spouse, your best option may be to claim spousal benefits rather than your own benefits. There are a few things you should consider to optimize your benefits:

• Wait until full retirement age (FRA): Claiming spousal benefits at 62 will result in a permanent reduction while waiting until FRA allows you to receive 50% of your spouse’s FRA benefit.
• Coordinate with your spouse: If your spouse delays claiming their own benefits until age 70, their benefits grow through delayed retirement credits and increase the amount you can receive.

Spousal Benefits for a Working Spouse

If both spouses have worked and qualify for their own Social Security benefits, here’s how to determine whether to claim based on your own earnings or spousal benefits:

• Compare your expected Social Security benefit to 50% of your spouse’s FRA benefit.
• You can opt for the higher amount if your benefit is lower than what you would receive through spousal benefits.
• Consider delaying your own benefits to increase future payouts through delayed retirement credits.

Survivor Benefits Explained

If one spouse passes away, Social Security provides survivor benefits to ensure continued financial support for widows, widowers, and certain dependents.

Who Is Eligible for Survivor Benefits?

Survivor benefits are available to:

• Widows and widowers age 60 or older (or 50+ if disabled).
• Surviving spouses of any age if caring for a child under 16.
• Dependent children under 18 (or up to 19 if still in school).
• Divorced spouses who were married for at least 10 years and have not remarried before age 60.

How Are Survivor Benefits Calculated?

Survivor benefits are based on the Social Security benefit of the deceased spouse. If the deceased had already claimed Social Security, the surviving spouse is eligible to receive 100% of their benefit, provided they wait until full retirement age (FRA) to claim. 

If the deceased had not yet claimed, the survivor’s benefit is calculated based on what the deceased would have received at FRA. However, if the surviving spouse chooses to claim benefits before reaching FRA, the payments will be permanently reduced.

Strategies for Survivor Benefits

Waiting until FRA to claim survivor benefits ensures the highest possible monthly payout. For those eligible for both their own Social Security benefit and a survivor benefit, it may be advantageous to claim one first and switch to the other later to optimize total lifetime payments. Additionally, surviving spouses who remarry after age 60 can still collect survivor benefits based on their deceased spouse’s record, providing greater financial flexibility in retirement planning.

Coordinating Your Social Security Claiming Strategy as a Couple

When planning for retirement, spouses may benefit from coordinating their Social Security claiming strategies to help manage household income over time. Understanding how different claiming ages impact monthly payments and survivor benefits can play a role in long-term financial planning. Here are some key considerations:

1. Delay the Higher-Earning Spouse’s Claim

When the higher-earning spouse delays benefits until age 70, their monthly benefit increases significantly due to delayed retirement credits. This also raises the survivor benefit, which may provide greater financial security for the lower-earning spouse. Meanwhile, the lower-earning spouse may choose to claim spousal benefits earlier while waiting for the higher-earning spouse’s benefit to grow.

2. Sequence Benefits for Maximum Income

Couples can stagger their claims to balance immediate income with long-term financial gains. For example, one spouse may claim early to provide income, while the other delays their claim to increase future benefits. Additionally, if one spouse is eligible for both their own and spousal benefits, they may strategically claim one first and switch to the other later for a higher payout.

3. Plan Around Survivor Benefits

Since survivor benefits are based on the deceased spouse’s benefit amount, delaying Social Security can significantly impact the surviving spouse’s financial future. The higher-earning spouse delaying their claim results in a larger benefit for the survivor. If both spouses worked, carefully comparing each person’s benefit amounts can help determine the best claiming strategy for the highest long-term income.

Common Mistakes to Avoid

Working with a financial professional can help you avoid missteps that could reduce your Social Security income when planning for spousal and survivor benefits. Here are a few common issues to be aware of:

1. Claiming Too Early

Claiming benefits at age 62 results in a permanent reduction in monthly payments. While early claiming may be necessary in some cases, waiting until Full Retirement Age (FRA) or later ensures higher benefits, especially for spousal or survivor benefits.

2. Not Coordinating with Your Spouse

Some couples make claiming decisions independently, missing opportunities to optimize their combined benefits. Before filing, spouses should compare their expected benefits, life expectancy, and income needs to develop a strategy that benefits both individuals in the long run.

3. Overlooking Survivor Benefit Maximization

When the higher-earning spouse claims benefits early, it permanently locks in a lower survivor benefit. Delaying benefits increases the monthly payout for the surviving spouse, helping ensure financial stability after one spouse passes away.

4. Ignoring Tax Implications

Up to 85% of Social Security benefits may be taxable depending on total income. Failing to consider taxation can reduce the net benefit amount. Properly planning withdrawals from 401(k)s, IRAs, or other taxable sources can help minimize tax burdens and optimize Social Security income.

5. Forgetting About Divorced Spouse Benefits

Individuals who were married for at least 10 years may be eligible for spousal or survivor benefits based on their ex-spouse’s earnings record. However, remarriage before age 60 can impact eligibility for survivor benefits, making timing an important consideration.

Coordinating Social Security benefits as a couple involves thoughtful planning and informed decision-making. Understanding the timing of claims, potential pitfalls, and the impact of survivor benefits can help spouses develop a strategy that aligns with their long-term financial goals and retirement needs. Working with a financial professional can provide personalized guidance tailored to your specific situation, helping you make informed choices about when and how to claim benefits.

FAQs on Spousal and Survivor Benefits