Spousal Social Security Benefits: 3 Things All Retired Couples Should Know

Married couples looking to maximize their Social Security benefits often have to consider the value of spousal benefits in their claiming decision. Spousal benefits can provide a boost to your overall household income in retirement, but the rules and complications of the program add some important considerations for when each partner should claim Social Security.

If you want to make the most of your spousal Social Security benefits, though, here are three things all retired couples should know.

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1. Who's eligible for spousal benefits?

First things first. You'll only be eligible for spousal benefits if you're married (or were married). Civil unions and domestic partnerships (non-marital legal relationships) may also count for some same-sex couples.

There are some additional requirements on top of that. A spousal beneficiary must be:

• At least age 62 or have a qualifying child in their care. A qualifying child is the spouse's child under age 16 or who receives Social Security disability benefits .
• Married at least one year, unless you are the parent of the spouse's child. Alternatively, a divorced spouse must have been married for at least 10 years.
• Not getting a higher Social Security retirement benefit based on their own work.

As long as you meet all of the above criteria, you can apply for spousal benefits.

2. How big can your benefit be?

The simple answer is that spouses are eligible to receive up to 50% of their spouse's primary insurance amount . The primary insurance amount is the benefit a worker receives if they start receiving benefits at their full retirement age.

Full retirement age currently ranges between 66 and 67. Anyone born between 1943 and 1954 reached full retirement age at 66. The age increases by two months for each year you were born after 1954, until reaching 67 for anyone born in 1960 or later.

You'll only receive the maximum 50% of your partner's PIA if you wait until your own full retirement age, though. If you claim early, you'll receive less. Importantly, your spousal benefit isn't dependent on when your spouse claims their benefit. Additionally, there's no delayed retirement credit for waiting beyond your full retirement age to claim spousal benefits.

Here's how early claiming affects the spousal benefit for someone with a full retirement age of 67.

Table by author. Calculations by author.

As you can see, claiming early can seriously diminish the monthly benefit you receive. The effect of claiming spousal benefits early is even greater than the effect of claiming your own benefit early .

Keep in mind, in most cases you cannot claim your spousal benefit early and then switch to your personal benefit upon reaching full retirement age or later. When you claim one benefit, you claim both, and the government sends you the largest benefit you're eligible for.

3. There are special cases to consider

There are three special cases to consider when it comes to spousal benefits.

The first case is when you're divorced. If you were married to someone for at least 10 years, you're eligible to claim spousal benefits based on their earnings record as long as you don't remarry before age 60. Additionally, divorced spouses do not have to wait for their ex to claim Social Security before they become eligible for spousal benefits.

The second case is if you care for your spouse's qualifying child. In that case, you can claim as soon as your spouse retires without a reduced penalty, even if you're younger than 62. Additionally, you can apply for spousal benefits in this case without also applying for your personal benefit. That gives you the opportunity to allow your personal benefit to grow larger over time and claim it later.

The final case is for widowers. If your spouse has passed, you may be eligible for survivor benefits instead of spousal benefits. Survivor benefits can be worth as much as your spouse was receiving, or would have received, in Social Security.

Survivor benefits can be claimed as early as age 60, but will face a reduction of the full benefit amount you'd receive at your full retirement age. However, they're also exempt from the rule requiring you to file for both spousal and personal benefits at the same time. As such, you can claim one benefit while letting the other grow and switch later.

All these complications can throw yet another wrench into what's already a tough financial decision. Be sure to discuss claiming strategies with your spouse and possibly consult a financial advisor to determine the best strategy for your household together.

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