Social Security is an essential part of retirement planning for many Americans, especially married couples. However, navigating the complex world of Social Security benefits can be tricky, with rules and regulations that aren’t always well-known. While most people are familiar with basic benefits, there are several lesser-known rules that can help married couples maximize their Social Security benefits.
In this article, we will explore three important Social Security rules every married couple should be aware of to make the most of their retirement benefits.
1. Spousal Benefits Can Be Up to 50% of Your Partner’s Full Retirement Age Benefit
For many married couples, one partner may earn significantly more than the other over their lifetime, potentially leading to a lower Social Security benefit for the lower-earning spouse. Fortunately, Social Security allows the lower-earning spouse to claim a spousal benefit based on the higher-earning partner’s record.
Under this rule, a spouse can receive up to 50% of their partner’s Full Retirement Age (FRA) benefit, which is calculated based on the higher earner’s lifetime earnings. It’s important to note that the FRA is generally 67 for most people born in 1960 or later. If the spouse begins claiming the benefit before reaching their FRA, the benefit will be reduced, and the reduction will be permanent.
For example, if your spouse’s monthly Social Security benefit at FRA is $2,000, you could potentially claim up to $1,000 per month (50%) as your spousal benefit, assuming you are of FRA age.
While this is a valuable benefit, it’s essential to evaluate the right time to claim. If the lower-earning spouse claims benefits early, they may lock in a reduced amount for the rest of their lives. For more information on spousal benefits, visit the Social Security Administration’s page.
2. Marriage Duration Affects Eligibility for Spousal Benefits
To qualify for spousal benefits, there is a requirement regarding the length of the marriage. Typically, married couples must be married for at least one year to be eligible for spousal benefits. However, there are exceptions to this rule.
One notable exception is if you are caring for a child who is either under the age of 16 or has a disability, and that child is entitled to benefits based on your spouse’s earnings record. In such cases, you may still qualify for spousal benefits, even if you have been married for less than one year.
It’s important to recognize that spousal benefits are based on the higher-earning spouse’s earnings history, and the lower-earning spouse can receive up to 50% of the higher earner’s FRA benefit. But again, if claimed before FRA, the benefit will be permanently reduced.
3. Divorced Individuals May Still Be Eligible for Spousal Benefits
One of the most surprising rules about Social Security benefits is that divorced individuals may still qualify for spousal benefits based on their ex-spouse’s record. This is especially beneficial for individuals who were married for at least 10 years and are currently unmarried.
To qualify for spousal benefits as a divorced spouse, the following criteria must be met:
- You must have been married for at least 10 years.
- You must be at least 62 years old.
- You must be currently unmarried.
- Your ex-spouse must be eligible for Social Security benefits.
If you meet these criteria, you can claim spousal benefits based on your ex-spouse’s record, even if they have remarried or if you’ve been divorced for many years. Importantly, claiming benefits as a divorced spouse will not affect your ex-spouse’s benefits. It’s also worth noting that the amount you would receive is the same as if you were still married to your ex-spouse.
This rule can be particularly useful for individuals who were married for a significant period but have since divorced. It allows them to receive benefits they might not have realized they were eligible for. For more information about spousal benefits for divorced individuals, visit the SSA’s official page.
Why These Rules Matter
Maximized Retirement Income: Understanding spousal benefits ensures that both married and divorced individuals can maximize their Social Security income.
Boost for Lower-Earning Spouses: The lower-earning spouse can claim up to 50% of the higher-earning spouse’s benefit, potentially increasing their monthly Social Security payment.
Strategic Timing: Knowing when to claim benefits—either at full retirement age or earlier—can significantly impact the amount of income you receive during retirement.
Opportunities for Divorced Individuals: Divorced individuals who were married for at least 10 years can still claim spousal benefits based on their ex-spouse’s earnings record, even if they’ve remarried or the ex-spouse has remarried.
Benefit for Long-Term Marriages: People who were married for many years but are now divorced can still benefit from Social Security based on their ex-spouse’s record, ensuring they are not left out of benefits they are entitled to.
Conclusion
Navigating Social Security benefits can be confusing, especially for married and divorced couples. However, understanding these three lesser-known Social Security rules can help ensure that you and your spouse or ex-spouse are maximizing your retirement benefits. Whether you’re considering spousal benefits based on your partner’s record, taking advantage of the marriage duration rule, or claiming benefits as a divorced individual, there are ways to ensure you get the most out of your Social Security benefits.
For more information on Social Security spousal benefits, visit the Social Security Administration’s Retirement Planner for detailed guidelines on eligibility and claiming options.
