If you decide to claim Social Security at age 62, your spousal benefit would be $650, or 35% less, said certified financial planner Peggy Sherman, a lead advisor at Briaud Financial Advisors in College Station, Texas. Also keep in mind that you would not get the benefit from your own record and the spousal benefit — you’d get the higher of the two.
How to maximize social security with spousal benefits?
According to the Social Security Administration, you may qualify for spousal benefits if:
- Your spouse is already collecting retirement benefits.
- You have been married for at least a year.
- You are at least 62 years old (unless you are caring for a child who is under 16 or disabled).
How much can a married couple get from Social Security?
You may need to produce these documents when you apply
- Your Social Security card.
- An original birth certificate or other proof of your birth.
- A copy of your W-2 form or self-employment tax return for the previous year.
- Your marriage certificate.
- If you weren't born in the United States, proof of U.S. citizenship or lawful alien status.
Who qualifies for Social Security spousal benefits?
You may also qualify for the spousal benefit If you’re divorced but the marriage lasted for at least 10 years and you’re not currently married. How Much Is the Social Security Spousal Benefit? If you’re eligible and can qualify, the spousal benefit can be as much as 50% of the higher-earning spouse’s full retirement age benefit.
How is Social Security spousal benefit calculated?
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Can I file for my Social Security at 62 and switch to spousal benefits later?
Only if your spouse is not yet receiving retirement benefits. In this case, you can claim your own Social Security beginning at 62 and make the switch to spousal benefits when your husband or wife files.
Does taking Social Security early affect spousal benefit?
Now, to answer your question: If you claim your Social Security retirement benefits early, this will not affect your wife's dependents benefits, which are also called spousal retirement benefits. As long as your wife waits until her full retirement age to claim her spousal benefits, she can collect the full amount.
Can I claim spousal benefits at 62?
You can claim spousal benefits as early as age 62, but you won't receive as much as if you wait until your own full retirement age. For example, if your full retirement age is 67 and you choose to claim spousal benefits at 62, you'd receive a benefit that's equal to 32.5% of your spouse's full benefit amount.
Can I collect half of my husband's Social Security at 62?
If you start your retirement benefits at age 62, the monthly percentage of your spouse's Social Security that you receive is reduced until you reach full retirement age. That means: At age 62, you'd get 35% of your spouse's full benefit. At age 63, you'd get 37.5% of your spouse's full benefit.
What are the rules for spousal benefits of Social Security?
To qualify for spouse's benefits, you must be one of these: At least 62 years of age. Any age and caring for a child entitled to receive benefits on your spouse's record and who is younger than age 16 or disabled.
How do spousal benefits work with Social Security?
If they qualify, your ex-spouse, spouse, or child may receive a monthly payment of up to one-half of your retirement benefit amount. These Social Security payments to family members will not decrease the amount of your retirement benefit.
When can a spouse claim spousal benefits?
You must have been married at least 10 years. You must have been divorced from the spouse for at least two consecutive years. You are unmarried. Your ex-spouse must be entitled to Social Security retirement or disability benefits.
Can my wife claim spousal benefits before I retire?
No. You have to be receiving your Social Security retirement or disability benefit for your husband or wife to collect spousal benefits.
Do Social Security spousal benefits increase after full retirement age?
Unlike Social Security retirement benefits, the spousal benefit does not increase if you wait to take benefits beyond your full retirement age, currently age 66 for most retirees. Thus, there is no advantage in waiting beyond your full retirement age to start taking your spousal benefit.
What is the best Social Security strategy for married couples?
3 Social Security Strategies for Married Couples Retiring EarlyHave the higher earner claim Social Security early. ... Have the lower earner claim Social Security early. ... Delay Social Security jointly and live on savings or other income sources.
What is the maximum Social Security benefit at age 62?
$2,364The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2022, your maximum benefit would be $3,345. However, if you retire at age 62 in 2022, your maximum benefit would be $2,364.
What percentage of Social Security benefits does a widow receive?
Widow or widower, full retirement age or older—100% of your benefit amount. Widow or widower, age 60 to full retirement age—71½ to 99% of your basic amount. A child under age 18 (19 if still in elementary or secondary school) or has a disability—75%.
How to calculate spousal pension?
Eight years later when Kate's husband turns age 70, he applies for his retirement benefits. Kate's husband's PIA is $2,000, and Kate's spousal benefit would be calculated by subtracting her PIA from 50% of her husband's PIA, which would amount to $400 (i.e. $2,000 / 2 – $600) in this example. Kate would then be paid a combined benefit rate equal to the sum of her reduced retirement rate and her spousal rate, or $840 (i.e. $440 + $400) in this example.
How much Social Security benefits are withheld?
Basically, Social Security would need to withhold $1 of benefits for each $2 or $3 that you earn in excess of the exempt amount, which could cause your benefit payments to be suspended for part of a year or the entire year depending on how much you earn. And if any of your benefits are withheld prior to FRA, your benefit rate could be recalculated effective at FRA to remove some or all of the reduction that was applied to your benefit rate for starting to draw early. Best, Larry
How long to wait to retire if divorced?
I don't know what your circumstances are, but assuming that your own retirement benefit rate is higher than your divorced spousal rate, you should think long and hard before deciding to switch to your retirement benefit based on your own record prior to 70. Your own retirement rate would continue to grow by 8% per year until you reach 70 as long as you don't opt to start drawing your own benefits until then, so there's a very good chance that waiting until 70 might be the best way to maximize your benefits if you are able to delay them. Best, Larry
What is WEP in Social Security?
The Windfall Elimination Provision (WEP) can result in the use of a less generous Social Security retirement benefit calculation formula for people who receive a pension based on their work that was exempt from Social Security taxes.
How much will my retirement rate grow?
Your own retirement rate would continue to grow by 8% per year until you reach 70 as long as you don't opt to start drawing your own benefits until then, so there's a very good chance that waiting until 70 might be the best way to maximize your benefits if you are able to delay them. Best, Larry.
Can I file for spousal benefits at age 70?
Hi Carla, You can't file for spousal benefits prior to full retirement age (FRA) without also being deemed to file for retirement benefits on your own record, but assuming that you were born prior to 1/2/1954, you could file a restricted application just for spousal benefits only at your FRA and still allow your own retirement benefits to grow until 70. This may well be your optimal strategy, but you may want to consider using maximization software to be sure. Best, Larry
Can I suspend my Social Security benefits if I work before FRA?
Hi Jeff, If you start drawing reduced benefits prior to your full retirement age (FRA), you can't voluntarily suspend your benefits until you reach FRA. Your benefits could be involuntarily suspended, though, if you return to work prior to FRA and earn more than the Social Security earnings test exempt amount.
How much do you get spousal benefits at 62?
Also keep in mind that you would not get the benefit from your own record and the spousal benefit — you’d get the higher of the two. Using the above scenario: If your monthly benefit at age 62 would be less than $650, you’d get $650. If your benefit were more, you’d get no spousal benefit.
When did Social Security change to spousal benefits?
The rules that apply to spousal benefits for individuals born after Jan. 1, 1954, were changed in 2015 congressional legislation. Married? You may want to think about how claiming Social Security early would affect your spousal benefits. For starters, not all early filers can access those benefits right away.
What happens if my spouse dies?
It’s also important to note that if your spouse dies, you would file for survivor benefits, not spousal benefits. (More on that farther below.) And if you were born before that 1954 cutoff date, you might have other strategies available to you as a spouse.
How long do you have to wait to receive 50% of your spouse's retirement?
In other words, the only way to be eligible for the full 50% of the full retirement age spousal benefit is to wait until your own full retirement age — and that holds true even if your spouse filed early, Sherman said.
When did the rules for spousal benefits change?
A decade-by-decade guide to retirement planning. Part of the reason is that the rules applying to spousal benefits for anyone born after Jan. 1 , 1954, were changed under 2015 legislation. “That’s when all of the creative filing went away for younger [beneficiaries],” Freitag said.
What is the maximum amount you can get if you wait to file for retirement?
For example, say your spouse’s monthly benefit at full retirement age is $2,000, so 50% — the maximum you could qualify for if you were to wait to file — is $1,000.
How many people received reduced Social Security benefits in 2018?
About 69% of the 43.7 million retired workers in 2018 received reduced benefits due to tapping them before their full retirement age, according to the Social Security Administration. The earliest you can file for benefits is age 62.
How much would my spousal benefit be at 62?
Also keep in mind that you would not get the benefit from both your own record and the spousal benefit — you’d get the higher of the two. Using the above scenario: If your monthly benefit at age 62 would be less than $650, you’d get $650. If your benefit were more, you’d get no spousal benefit.
When did Social Security change to spousal benefits?
Part of the confusion is because the rules applying to spousal benefits for anyone born after Jan. 1, 1954, were changed under 2015 legislation, said David Freitag, a Social Security expert and financial planning consultant with MassMutual.
What happens if my spouse dies?
It’s also important to note that if your spouse dies, you would file for survivor benefits, not spousal benefits. And if you were born before that 1954 cutoff date, you might have other strategies available to you as a spouse.
When do you get reduced Social Security?
You may know that your own Social Security benefits are reduced if you claim them before your full retirement age (as deemed by the government), which currently is either 66 or 67, depending on your birth year. (Likewise, claiming anytime beyond that age means your benefits would be higher, growing by an average of 8% yearly until you reach age 70.)
Is the amount of the reduction greater the earlier you claim?
The amount of the reduction is greater the earlier you claim.
How old do you have to be to get spouse's Social Security?
To qualify for spouse’s benefits, you must be one of these: At least 62 years of age.
When will my spouse receive my full retirement?
You will receive your full spouse’s benefit amount if you wait until you reach full retirement age to begin receiving benefits. You will also receive the full amount if you are caring for a child entitled to receive benefits on your spouse’s record who is younger than age 16 or disabled.
What happens if your spouse's retirement benefits are higher than your own?
If your benefits as a spouse are higher than your own retirement benefits, you will get a combination of benefits equaling the higher spouse benefit. Here is an example: Mary Ann qualifies for a retirement benefit of $250 and a spouse’s benefit of $400.
How old do you have to be to apply for retirement?
If you are at least 62 years of age and you wish to apply for retirement or spouse’s benefits, you can use our online retirement application to apply for one or both benefits.
How much is spousal benefit?
The spousal benefit can be as much as half of the worker's " primary insurance amount ," depending on the spouse's age at retirement. If the spouse begins receiving benefits before " normal (or full) retirement age ," the spouse will receive a reduced benefit. However, if a spouse is caring for a qualifying child, the spousal benefit is not reduced.
What is the reduction factor for spousal benefits?
For a spouse who is not entitled to benefits on his or her own earnings record, this reduction factor is applied to the base spousal benefit, which is 50 percent of the worker's primary insurance amount. For example, if the worker's primary insurance amount is $1,600 and the worker's spouse chooses to begin receiving benefits 36 months ...
What age do you have to be to file for retirement?
Another requirement is that the spouse must be at least age 62 or have a qualifying child in her/his care.
Can a spouse reduce their spousal benefit?
However, if a spouse is caring for a qualifying child, the spousal benefit is not reduced. If a spouse is eligible for a retirement benefit based on his or her own earnings, and if that benefit is higher than the spousal benefit, then we pay the retirement benefit. Otherwise we pay the spousal benefit. Compute the effect of early retirement ...
What Does It Take to Qualify for Social Security Spousal Benefits?
Unlike most rules related to Social Security, the rules for the spousal benefit entitlement are pretty straightforward and easy to understand.
How many people receive Social Security benefits as a spouse?
A recent Social Security report found that 2.3 million individuals received at least part of their benefit as a spouse of an entitled worker. Some of these spouses had benefits of their own, but were eligible to receive higher benefit because the spousal benefit amount was greater than their own benefit. Others never worked outside the home ...
What is the most generous benefit available to retirees?
What’s one of the most generous benefits available to retirees? That’s easy. It’s Social Security spousal benefits ! These benefits are some of the most important, too.
How much is spousal benefit?
Depending on how old you are when you file, the spousal benefit amount will range between 32.5% and 50% of the higher-earning spouse’s full retirement benefit. Check out the chart below to get an idea of how the benefit works and what your payment might be if you can take advantage ...
What is the 1 year requirement for Social Security?
The 1-year requirement is also waived if you were entitled (or potentially entitled!) to Social Security benefits on someone else’s work record in the month before you were married. An example of these benefits would be spousal benefits, survivor benefits or parent’s benefits.
What is Julie's reduction to her own benefit?
This means that Julie’s reduction to her own benefit would be based on her age when she filed for her benefit. However, her reduction to the spousal benefit would be based on her age when Joe filed for his benefit. So, if Julie filed when she was 62, her own benefit would be reduced.
How long do you have to be married to qualify for spousal benefits?
You may also qualify for the spousal benefit If you’re divorced but the marriage lasted for at least 10 years and you’re not currently married.