One of its important provisions is providing security for non-working or lesser-earning spouses of those that receive their own retirement benefits. Rather than putting these individuals at risk of financial insecurity, the program offers benefits to qualifying spouses even if they never worked a day in their lives.
While this aspect of Social Security isn’t going away, an important provision of how it operates is changing dramatically, eliminating one strategy that past recipients often used to boost their benefits. Here’s a look at how the spousal benefit operates, how it is changing and what you can do to adapt to the new Social Security landscape .
The Social Security system is all about protection. It protects retirees from extreme poverty after they start working, it protects disabled workers from having no income and it protects qualifying non-working or lesser-earning spouses from having no benefits at all.
The spousal benefit pays beneficiaries up to 50% of the benefit that their spouse receives. For example, if you have a small or nonexistent benefit of your own but your spouse earns $2,000 per month in retirement benefits, you may qualify for up to $1,000 of your own. This can be a gamechange for retired couples, as it can effectively boost their lifelong income by as much as 50%.
Even better, until this year, spouses were entitled to switch their benefits between the spousal benefit and their own at a later date. For example, someone could file for spousal benefits at age 62, and then when they reached age 70, they could switch to receiving their own benefit based on their personal work history.
As Social Security benefits increase from age 62 to age 70 — by as much as 8% per year — the age-70 benefit would often be higher than the spousal benefit they claimed at age 62. By using this strategy, couples could receive the best of both worlds.
Unfortunately, that rule changed in 2024, except for those who were born before Jan. 2, 1954. Now, spouses will only receive the higher of either their own working benefit or their spousal benefit, based on the age at which they file.
The Social Security Administration will always pay the higher of either your own work-based benefit or your potential spousal benefit. Technically, the SSA will first pay any retirement benefit you’re entitled to based on your personal work record.
If that amount is less than the amount you’re entitled to under the spousal benefit, your payment will be supplemented until it equals the higher amount.
To qualify for a spousal benefit, you must be:
At least 62 years of age, or
Be caring for a child under 16 years of age or disabled and
Have a spouse who has filed for Social Security benefits
If you wait to file until your full retirement age, which for those born in 1960 or later is 67, you’ll receive 50% of your spouse’s full benefit. Although you can file as early as age 62, your benefit will be permanently reduced.
You can qualify for a spousal benefit even if you are divorced, as long as you were married for at least 10 years.
How To Maximize Future Benefits
Regardless of whether or not the change in the spousal rule affects you, it always pays to have a well-thought-out Social Security claiming strategy. Here are some ways you can maximize your future benefits as a non-working or lesser-earning spouse:
Maximize Earnings While You Still Can
The best way to boost your own personal Social Security earnings is to earn as much as you can in wages that are subject to Social Security taxes. If you can qualify for a Social Security benefit that exceeds 50% of your spouse’s benefit, then you’ll be better off in the long run anyway, as your lifetime payout will be higher.
File as Late as Possible — But Not Later than 67
If you’re relying on your spousal benefit to help boost your lifetime Social Security earnings, avoid filing at age 62. This will permanently reduce your benefit by about 30% vs. filing at your full retirement age. However, you shouldn’t wait until after age 67 either, as your benefit won’t increase after your full retirement age.
If Born Before Jan. 2, 1954, Maintain Optimal Claiming Strategy
The rules for spousal benefits are not changing for those born before Jan. 2, 1954. If that applies to you, you may still file for spousal benefits at age 62 and then switch to benefits based on your own work record at age 70 if you would prefer.
The Bottom Line
For many people, the change in the Social Security spousal rule won’t have an effect on them. A nonworking spouse, for example, would always receive more money by claiming a spousal benefit than from the $0 they would earn based on their own work record. But for others, some additional planning may be in order.
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