Understanding Spousal Social Security Benefits: Eligibility and Claiming Strategies

The first amendments to the Social Security Act appeared just a few years after its ratification in 1935. Whereas the original act provided only for primary workers, the 1939 Amendments added benefits for related parties, including children, survivors, and spouses. This pivotal modification fundamentally transformed Social Security into a safety net that can cushion entire families.

As a married wage earner planning for retirement, you may wonder, "What is the Social Security spouse's benefit, how do I qualify, and what are its advantages?" The complete answers to these questions involve a fair bit of nuance.

What are Social Security spouse's benefits?

The Social Security spouse's benefit refers to a regular monetary benefit you may qualify for if you're married to a Social Security beneficiary. Your total benefit may amount to 50% of your partner's primary insurance amount or the total monthly amount they would receive if they filed for Social Security at their full retirement age. However, the exact amount depends on your age when you file for spousal benefits. The earlier you file, the lower your benefit amount.

When you apply for spousal benefits, you'll also be applying for benefits based on your own work history. If you're eligible for benefits based on your earnings and that amount is higher than your spousal benefit, that's what you'll get. If it's lower, you'll get a combination of the two benefits that equals the higher amount.

Of note, the Social Security spouse's benefit isn't the same as a survivor's benefit. The latter is for widows, widowers, and dependents of a deceased person, whereas the spouse's benefit applies to the married partner of a living beneficiary.

Who qualifies for spousal Social Security benefits?

The Social Security spouse's benefit is available to both current and former spouses, but not all married partners are eligible. To begin, the primary beneficiary must have already filed to receive their worker benefits. In addition, you, as the spouse, must fulfill the following criteria:

• Current spouses: You must be at least 62 years old or caring for a child under 16. You also qualify for the spouse's benefit if you care for a disabled child who's eligible to receive benefits on your partner's record.
• Ex-spouses: You must have been married to the beneficiary for at least 10 years. The beneficiary can have remarried, but you must be unmarried. If you've been divorced for at least two years, you can file for the spouse's benefit even if your ex-partner has yet to file for Social Security.

Additional considerations apply if you're eligible for your own Social Security retirement benefits. If your spousal benefit exceeds your retirement benefit, you receive a combined amount equal to the higher figure. Otherwise, your worker benefit supersedes it, and you don't receive any additional Social Security income.

For example, imagine that you qualify for a retirement benefit of $1,200 and a spousal benefit of $1,300. In that case, the Social Security Administration pays you the $1,200 and an extra $100. However, if your retirement benefit is $1,300 and your spousal benefit is $1,200, you receive only your retirement benefit.

How can you calculate your Social Security spouse's benefit?

The amount of your spouse's benefit depends on your age when you decide to file. To estimate how much you can expect to receive in monthly spousal benefits, you must first calculate your partner's primary insurance amount, which involves averaging their monthly income over their 35 highest-earning years, segmenting the average according to the national average wage index, multiplying each segment by a specific percentage, and adding the products.

The maximum amount you may receive as a spouse is 50% of your partner's primary insurance amount. That's if you file for benefits at full retirement age, which ranges from 66 to 67. For up to 36 months before full retirement age, your spousal benefit reduces by 25/36 of 1% per month. An additional reduction rate of 5/12 of 1% per month applies if you file earlier than 36 months from full age. The earliest you can begin receiving spousal benefits is age 62, but filing that early would give you just 32.5% of your partner's primary insurance amount.

For example, say that your partner has a primary insurance amount of $1,500. If you file for spousal benefits at your full retirement age, you can qualify for $750 per month in spousal Social Security. However, if you file at age 62, you may receive as little as $487 per month. Filing during any of the intermediary years would result in a monthly benefit amount between those thresholds.

How can you file for Social Security spouse's benefits?

There are four ways to file for Social Security spouse's benefits:

• Online: The Social Security Administration's online portal is a convenient route if you're at least 62 years old or within three months of your 62nd birthday. Under the "What do you want to apply for?" section, select the "Family" option.
• Telephone: Call the Social Security Administration's national toll-free service at 1-800-772-1213 to initiate your claim with a representative.
• Text telephone: The Social Security Administration also operates a TTY service at 1-800-325-0778 — an accessible alternative for people with hearing loss or a speech impairment.
• In-person visit: If you prefer a face-to-face interaction, locate your nearest Social Security office by zip code and pay a visit at your convenience. Walk-ins are welcome, but making an appointment may significantly reduce your wait time.

You will need to provide documentation to validate your claim. Normally, the Social Security Administration requires proof of birth, proof of citizenship or residential status, tax forms, and a marriage certificate or divorce decree.

How can you maximize income with the Social Security spouse's benefit?

You can maximize your total Social Security income if you or your partner — preferably whoever is expecting a higher retirement benefit amount — delays their benefits until age 70. That's because the Social Security Administration increases your monthly benefit check for each year past full retirement that you delay filing. While the spousal benefit doesn't increase (after all, it's based on the partner's primary insurance amount, which is unlikely to change significantly), this strategy can maximize the total monthly distribution you receive through Social Security.

Like all major decisions in a marriage, figuring out the best approach to the spousal benefit requires communication and planning. Work together and with a financial planner to determine which strategy may best suit your retirement plans.

Reach out to Blueprint Income for more ways to maximize your retirement income

Your Social Security benefits may not be enough to cover your expenses in retirement. Therefore, before you retire, you may want to explore alternative strategies for securing income, such as a fixed annuity. Get in touch with Blueprint Income at 888-867-7620 or support@blueprintincome.com to discover how an annuity can provide you with a steady cash flow in your golden years.

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