Spousal benefits are up to 50% of the higher-earning spouse’s benefit at full retirement age.
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When you submit a request Social securityyour spouse becomes eligible for payments called spousal benefits. However, they will not receive these payments automatically. Instead, they must file a claim with the Social Security Administration, whether or not they receive their own retirement benefits.
A financial advisor can help you plan for Social Security and develop a comprehensive retirement income plan. Connect with a Fiduciary Advisor.
For example, imagine that a man receives $3,000 to his full retirement age. His wife can collect up to $1,500 in spousal benefits depending on her earnings history, but she must apply for them. Here’s a closer look at how spousal benefits work.
Spouse’s benefits are a form of social security payments to the spouses of recipients. If you are married or have previously been married, you can receive benefits of up to 50% of your spouse’s full pension. For most people, this means the benefits they would receive at age 67. These payments are not deducted from your spouse’s payments, and your spouse cannot change your right to receive them.
To apply for spousal benefits, the SSA requires the following:
If both of these criteria are met, the secondary spouse can apply for spousal benefits. However, there are two exceptions to these rules:
If the spouses have been divorced for more than two years, the secondary spouse is eligible for spousal benefits regardless of the primary spouse’s retirement status.
If the secondary spouse is caring for a child under the age of 16 or who is receiving disability benefits through the SSA. they can apply for spousal benefits before age 62
You can also apply for retirement benefits based on a former spouse’s benefits if you were married for at least 10 years and you haven’t remarried. This is not affected by the primary spouse’s marital status, and in some situations you can claim benefits before the primary spouse retires.
From advice on spousal benefits to advice on how and when to make withdrawals from retirement accounts, a financial advisor can help you plan for your retirement.
A woman watches her husband apply for spousal benefits from the Social Security Administration.
Spousal benefits are capped at 50% of the higher-earning spouse’s “primary insurance amount” (PIA) – their benefit at full retirement age. For example, if you receive $3,000 per month in Social Security, your spouse can receive up to $1,500 per month in spousal benefits if they wait until their full retirement age.
Although spouses are eligible for spousal benefits starting at age 62, this will reduce their lifetime benefits by a certain percentage for each month before age 67. Applying for spousal benefits at age 62 may result in a benefit worth only 32.5% of the higher-earning spouse’s primary insurance amount. In other words, if you claim spousal benefits at age 62, you will receive $32.50 for every $100 of the primary spouse’s PIA.
Unfortunately, delaying spousal benefits beyond full retirement age does not have the opposite effect. Spousal benefits are not increased if you claim them after age 67.
The SSA makes this calculation automatically when you apply for benefits. If you are entitled to your own retirement benefits, as well as spousal benefits, the SSA will issue the higher payment. If you have already started receiving benefits based on your own income, you will be able to transfer payments to spousal benefits once your spouse retires. This usually happens if your spousal benefits exceed your own retirement benefits.
And if you need help calculating Social Security benefits and deciding when to claim them, talk to a financial advisor.
Once eligible for Social Security spousal benefits, a beneficiary must apply for these benefits whether or not he or she has begun collecting his or her own retirement benefits.
To understand how this works, let’s look at our hypothetical situation from above. Imagine you hope to collect $3,000 a month from Social Security at full retirement age.
Either way, your wife’s spousal benefits would be based on your primary insurance amount of $3,000, as well as her age. For example, if you retire at age 67, here is the amount of your spousal benefits based on the age she chooses to claim them:
62: $975 per month ($3,000 * 0.325)
67: $1,500 per month ($3,000 * 0.5)
70: $1,500 per month ($3,000 * 0.5)
As you can see, claiming spousal benefits at age 62 would only leave you with $975 per month, or 32.5% of your primary insurance amount. Once she reaches full retirement age, she becomes eligible for her maximum spousal benefit of $1,500 per month. Before filing a social security application, consider speaking with a financial planner to discuss the impact of your benefits on your retirement income plan.
But what if your wife also has her own retirement benefits? How would spousal benefits impact the amount she ultimately receives?
For example, let’s say your wife is eligible for $1,200 in retirement benefits based on her own income. Since his own retirement benefit is lower than that of his spouse, the SSA would pay him the latter. And if she qualified for $1,600 based on her own employment history, the SSA would simply pay that amount.
Spousal benefits are Social Security payments made based on the income of the higher-earning spouse. A spouse can receive up to 50% of their spouse’s Social Security benefits at full retirement age, but these payments are not issued automatically. Like all benefits, you must file an application with the SSA to receive them.
Social Security plays a central role in many Americans’ retirement plans. In fact, two people receiving the maximum benefit in 2024 can bring in a household income of almost $117,000. With this in mind, here is some strategies to maximize social security for you and your spouse.
A financial advisor can help you strategize for Social Security and develop a comprehensive retirement plan. Find a financial advisor It doesn’t have to be difficult. The free SmartAsset tool connects you with up to three licensed financial advisors who serve your area, and you can have a free introductory call with your advisor to decide which one seems best for you. If you are ready to find an advisor that can help you achieve your financial goals, start now.
Keep an emergency fund on hand in case you face unexpected expenses. An emergency fund should be liquid – in an account that doesn’t have the risk of large fluctuations like the stock market. The tradeoff is that the value of cash can be eroded by inflation. But a high interest account allows you to earn compound interest. Compare the savings accounts of these banks.
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