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

How much someone receives in Social Security retirement benefits depends largely on their career earnings. Broadly speaking, the more someone earns, the more they can expect to receive in Social Security (up to a certain point).

The problem with that, however, is that not everyone has a career of suitable earnings. Some people spend time at home raising children; some people have inconsistent work histories for whatever reason; and some people work in lower-paying jobs that don't contribute much to Social Security.

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Luckily, being in any of those or similar situations doesn't automatically mean you can't receive Social Security. Social Security allows spousal benefits to support non-working or low-earning spouses in retirement. If you're a couple in or nearing retirement and considering going this route, here are three things you should know.

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1. Who is eligible to receive Social Security spousal benefits

Like standard Social Security benefits, the first box that must be checked for eligibility is being at least 62 years old. The only exception is if you're caring for a disabled child who's younger than 16.

The other two boxes are making sure you've been married for at least one year and that your spouse has already claimed benefits. Assuming the person claiming spousal benefits is at full retirement age (FRA), they're eligible to receive 50% of their spouse's primary insurance amount (PIA).

For example, if spouse A's PIA is $2,000 at their FRA, spouse B could receive up to $1,000 as long as they're also at their FRA. The exact amount will depend on the age at which spouse B claims benefits. Below are FRAs by birth year:

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2. How claiming benefits early affects standard versus spousal benefits

If you decide to claim spousal benefits before your FRA, the monthly amount you receive will be reduced based on how far away from your FRA you are. The same applies to standard benefits, but the amount of the reductions is different between them.

For the person claiming benefits based on their work record, benefits are reduced by 5/9 of 1% each month before their FRA, up to 36 months. Each month after that further reduces benefits by 5/12 of 1%. With spousal benefits, the reduction is 25/36 of 1% each month before their FRA, up to 36 months, and then it goes down to 5/12 of 1% each month after that.

If we use someone whose FRA is 67 as an example, here's how much monthly benefits will be reduced at different claiming ages:

Source: Social Security Administration.

A major difference between standard and spousal benefits is that monthly spousal benefits aren't increased if you delay claiming past your FRA.

3. Spousal benefits are converted if the primary claiming spouse passes away

If you're claiming spousal benefits and your partner passes away, Social Security will convert your spousal benefits to survivors benefits. The conversion to survivors benefits makes you eligible to receive up to 100% of your deceased spouse's benefit, including any delayed retirement credits they earned before their passing.

A widow(er) is eligible to receive survivors benefits at age 60 (50 if dealing with a disability) as long as they were married at least nine months before the passing. Ex-spouses who were married for at least 10 years may also be eligible. In either case, like other benefit types, they'll be reduced if claimed before FRA.

You can't receive spousal and survivors benefits at the same time, only whichever is higher. Since spousal benefits max out at 50% of the partner's primary insurance amount, survivors benefits are generally the higher-paying option.

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