how to figure spousal benefits

^{How are spousal benefits calculated for Social Security?}

1. First, the Social Security Administration (SSA) calculates the benefits owed on your own earnings record (if you qualify) . ...
2. Next, the SSA calculates 50% of your spouse’s PIA. That 50% is the most you could be eligible for—but as with earned benefits, you’ll receive less if you claim ...
3. If you claim benefits before your Full Retirement Age, they will reduce your spousal benefits. You are eligible to begin retirement and spousal benefits starting at age 62. ...
4. If you continue to work while receiving benefits, the retirement benefit earnings limit still applies until you reach full retirement age . ...
5. If you receive a pension based on work not covered by Social Security (for example government work), you can still collect Social Security spousal benefits, but the amount will ...

How to estimate Social Security benefits from a former spouse?

• If you are of full retirement age or older, you would receive 100%.
• If you are age 60 or older but not yet of full retirement age, you would receive 71.5% to 99%.
• If are 50 to 59 years old and disabled, you would receive 71.5%.

More items...

How do you calculate spouse Social Security benefits?

The requirements for claiming benefits based on your ex-spouse's work record include:

• 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.
• The benefit you would receive from your work record would be less than this spousal benefit.

How is Social Security spousal benefit calculated?

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• How retirement benefits, spousal benefits, and widow (er) benefits are calculated,
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How much is spousal benefit social security?

How Much to Expect for Spousal Social Security Benefits. Your spousal benefit will be 50% of your spouse’s benefit if you start payments at full retirement age or older.

Can you collect 1/2 of spouse's Social Security and then your full amount?

Your full spouse's benefit could be up to one-half the amount your spouse is entitled to receive at their full retirement age. If you choose to begin receiving spouse's benefits before you reach full retirement age, your benefit amount will be permanently reduced.

What percentage is the spousal benefit?

Depending on your age upon claiming, spousal benefits can range from 32.5 percent to 50 percent of your husband's or wife's primary insurance amount — the retirement benefit to which he or she is entitled at full retirement age, or FRA.

What is the maximum spousal benefit for a spouse who never worked?

The maximum Social Security benefit of a nonworking spouse is up to 50 percent of the working spouse's benefit at FRA. So if, for example, your FRA benefit is $2,000/month, your spouse would be able to collect up to $1,000 at his FRA.

What are the rules for spousal benefits of Social Security?

Who is eligible for spousal Social Security 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.More items...•

When can a spouse claim spousal Social Security benefits?

62 years of ageEven if they have never worked under Social Security, your spouse may be eligible for benefits if they are at least 62 years of age and you are receiving retirement or disability benefits. Your spouse can also qualify for Medicare at age 65.

How much Social Security will my wife get?

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.

Does a wife get 50 of husband's Social Security?

You can receive up to 50% of your spouse's Social Security benefit. You can apply for benefits if you have been married for at least one year. If you have been divorced for at least two years, you can apply if the marriage lasted 10 or more years.

When a husband dies does the wife get his Social Security?

These are examples of the benefits that survivors may receive: Widow or widower, full retirement age or older — 100% of the deceased worker's benefit amount. Widow or widower, age 60 — full retirement age — 71½ to 99% of the deceased worker's basic amount. Widow or widower with a disability aged 50 through 59 — 71½%.

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.

Can I take my Social Security at 62 and then switch to spousal benefit?

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.

Can my wife collect spousal Social Security 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.

How to ask your spouse to open their Social Security account?

Ask your spouse to create or open their my Social Security account, go to the ‘Plan for Retirement’ section, and note their retirement benefit estimate at their full retirement age or Primary Insurance Amount (PIA).

How long does it take to create a Social Security account?

Creating a free my Social Security account takes less than 10 minutes and you get access to many other online services. Plan for your future. Manage the present.

How much is spousal benefit reduction?

If you file for a spousal benefit prior to your full retirement age, that spousal benefit will be reduced due to early filing. The reduction is 25/36 of 1% for each month early, up to 36 months. For each month in excess of 36 months, the reduction is 5/12 of 1%.

How much is Bob's spousal benefit?

Bob’s spousal benefit will initially be calculated as 50% of Jane’s PIA. (Key point being: it’s 50% of Jane’s PIA, rather than 50% of what she’s actually receiving.) If Jane had filed for retirement benefits after her full retirement age (and were therefore receiving an amount larger than her PIA), Bob’s benefit as Jane’s spouse would still be ...

What happens if you file for spousal benefits before retirement?

If you file for spousal benefits prior to your full retirement age, your spousal benefit will be reduced.

What happens if you receive a retirement benefit of your own?

If you are receiving a retirement benefit of your own, your benefit as a spouse will be reduced by the greater of: your monthly retirement benefit. Example: In addition to receiving a benefit as Jane’s spouse, Bob is also receiving a retirement benefit of his own.

What is Bob's full retirement age?

Example (continued): Bob’s full retirement age is 67. Bob files for his retirement and spousal benefits at age 65 (i.e., 24 months early). As a result, his spousal benefit will be reduced by [24 x 25/36 of 1%] — or 16.67%.

What is the primary insurance amount?

A person’s primary insurance amount is the amount of their monthly retirement benefit, if they file for that benefit exactly at their full retirement age. A Social Security spousal benefit is calculated as 50% of the other spouse’s PIA.

Can you collect spousal benefits while working?

If you are collecting a spousal benefit while under full retirement age and you are working, the earnings test may result in some or all of your spousal benefit being withheld.

How Do Social Security Spousal Benefits Work?

You're eligible for spousal benefits if you're married, divorced, or widowed and your spouse is or was eligible for Social Security. Spouses and ex-spouses generally are eligible for up to half of the spouse's entitlement. Widows and widowers can receive up to 100%.

What is the maximum spousal benefit?

The maximum spousal benefit is 50% of the other spouse's full benefit.

What Is the Maximum Spousal Social Security Benefit?

The maximum spousal benefit is 50% of the amount that the spouse is eligible to receive at full retirement age. 15 That's a cap, by the way. If your spouse delays retiring until 70, the spouse gets more but you don't.

How much can a widow receive?

A widow or widower can receive up to 100% of a spouse's benefit amount. That's if the survivor has reached full retirement age at the time of the application. The payment is reduced to somewhere between 71% and 99% of the deceased's entitlement if the widowed person is at least 60 but under full retirement age. 8 .

What is offset in Social Security?

For example, if you have a government pension for which Social Security taxes are not withheld, the amount of your spousal benefit is reduced by two-thirds of the amount of your pension. This is known as a government pension offset. 5 

How old do you have to be to collect Social Security?

If your spouse has filed for Social Security benefits, you can also collect benefits based on the spouse's work record, if: You are at least 62 years old. Regardless of your age, if you care for a child who is entitled to receive benefits on your spouse’s record, and who is under age 16 or disabled. 2 .

What is the normal retirement age?

As you might expect, "normal" retirement age is becoming later in life, but the changes to the Social Security rules are being phased in. It is age 66 for those born between 1943 and 1955. It increases gradually to age 67 for those born from 1955 to 1960. For those born after 1960, it's 67.

How old do you have to be to get spousal benefits?

If you file for a spousal benefit before age 66, the percentage you receive depends upon your age. There’s a two-stage process as to how Social Security calculates the reduction and it's based upon how many months ahead of your FRA you are filing:

How to find out if my spousal benefit is affected?

There’s a calculator on the Social Security website that allows you to enter your information to find out how your spousal benefit will be affected if you file prior to your full retirement age.

How much is the spousal benefit reduction?

For the first 36 months before age 66 that you apply for a spousal benefit, your check is reduced by 25/36 of one percent. For each additional month that you file “early,” the reduction is 5/12 of one percent.

What is the Social Security income limit for 2012?

If you are receiving income from a job (investment income doesn’t count), your spousal benefit may be reduced. The “income limit” for 2012 is $14,640. Assuming you are not going to reach full retirement age this year, for every $2 above this amount that you’re paid, Social Security will withhold $1 of your spousal benefit.

What is the maximum amount you can get from Social Security at 66?

3. If you are turning 66 this year, the earnings limit is $38,880. Once your earnings from a job exceed this amount, Social Security will withhold one out of every three dollars in benefits. Visit the following website and enter your date of birth and income to find out how your Social Security benefit might be affected by your earned income: http://www.socialsecurity.gov/OACT/COLA/RTeffect.html

Do you get Social Security if you claim spousal benefits?

Here are some other things you need to be aware of when claiming spousal benefits: If you are eligible for a Social Security benefit based upon your own work history, you will either receive this amount or the spousal benefit you’re entitled to, whichever is higher. (In other words, you don’t get both amounts.)

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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 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.

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.

Why is Social Security spousal benefit confusing?

Credit: Getty Royalty Free. Getty. Social Security spousal benefits are probably the most confusing benefit because they are considered a family benefit. But even more confusing is how the benefit is calculated. First, let’s determine if you are eligible.

How old do you have to be to get spousal benefits?

To qualify for Social Security spousal benefits: Both you and your spouse must be at least 62 . Married at least 1 year. The other spouse must be receiving their worker benefit. Most people think that they are entitled to 50% of their spouses’ benefit. That’s true only if you are filing for spousal benefits at your full retirement age.

What is the relevance of spouse's PIA?

The only relevance your spouse has is the amount of their Primary Insurance Amount (PIA). Spousal benefits are calculated using both your Primary Insurance Amounts and your spouse’s Primary Insurance Amount. Spousal benefits are layered on top of any worker benefit you may have.

How much of my spouse's PIA is spousal?

For example, your PIA is $1,250 and your spouse’s PIA is $2,000.

Can both spouses receive spousal benefits at the same time?

Both spouses cannot receive spousal benefits at the same time.

Is spousal benefit layered?

Spousal benefits are layered on top of any worker benefit you may have. If you have your own worker benefit, you are always paid that benefit first, then any amount of spousal benefit is layered on top of that.

When did spousal benefits start?

Regulated into the Social Security payments in 1939 , the spousal benefits are one of the most reliable payouts. It helps expand the household income during retirement and also provides assistance to widows and widowers. It includes provisions for disabled retirees and children as well. However, these funds only accrue to the spouses of qualified taxpayers. Before applying for a spousal Social Security advantage, one needs to be sure of the terms and eligibility criteria. The rules for this are simple and easy to understand.

How much of a PIA is a spouse's Social Security?

A Social Security spousal claim is calculated as 50% of the partner’s PIA, irrespective of the year of filing. Such as, X is born in 1960 and files for retirement benefits at the age of 62. In this condition, X is liable to get an amount that is lesser than the actual PIA. However, if X’s spouse - Y, claims for Social Security, the amount is arrived at by estimating 50% of the X’s PIA. This will not be factored in terms of X’s actual receipts. Instead, it is based on the official PIA.

How does early retirement affect benefits?

Early retirement affects the benefits. The spousal claims are maximized at the official retirement age and reduce as the partner files for the advantage before the authorized year. This reduction for early retirement is for a lifetime and has only certain restricted exceptions, like caring for a child who is younger than 16 or is disabled.

What is the PIA age for spousal benefits?

This is typically the total monthly retirement advantage of a person, provided the claim is made at the full retirement age. This varies as per the birth year. For those born in 1960 or later, the official age is 67 years.

What is the PIA for retirement?

These calculations assume the official retirement age of a person to be 67 years and the PIA to be $3000.

What happens if you ask for security before retirement age?

Security asked for before the person’s retirement age will lead to a reduction.

How old do you have to be to claim a child support?

Both the partners should be at least 62 years old. Or the spouse claiming the benefit should be the custodian for the child of the main beneficiary. However, this exception is only applicable for children that are under the age of 16 or disabled.

How are spousal benefits calculated?

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 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 .

When can my wife claim spousal benefits?

You 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 (unless you are caring for a child who is under 16 or disabled, in which case the age rule does not apply).

When can my spouse collect half of my Social Security?

You can receive up to 50% of your spouse’s Social Security benefit. You can apply for benefits if you have been married for at least one year. If you have been divorced for at least two years, you can apply if the marriage lasted 10 or more years. Starting benefits early may lead to a reduction in payments.

How are Social Security disability benefits calculated?

Social Security Disability Insurance ( SSDI ) Your SSDI benefits are based on the amount of income on which you have paid social security taxes. Your average earnings are called your Average Indexed Monthly Earnings (AIME). Using your AIME, the SSA will calculate your Primary Insurance Amount (PIA).

Who qualifies for spousal Social Security benefits?

How Do Social Security Spousal Benefits Work? You’re eligible for spousal benefits if you’re married, divorced, or widowed and your spouse is or was eligible for Social Security . Spouses and ex- spouses generally are eligible for up to half of the spouse’s entitlement. Widows and widowers can receive up to 100%.

What is the maximum Social Security benefit for a married couple in 2020?

For an eligible beneficiary who reaches full retirement age in 2020, the maximum payment is $3,011; for one who reaches age 70 in 2020, it’s $3,790. If they qualify based on their own work histories, a married couple can each receive the maximum individual retirement benefit.

When a husband dies does the wife get his Social Security?

When a retired worker dies , the surviving spouse gets an amount equal to the worker’s full retirement benefit. Example: John Smith has a $1,200-a-month retirement benefit. His wife Jane gets $600 as a 50 percent spousal benefit. Total family income from Social Security is $1,800 a month.

How much is FMB on SSDI?

The maximum FMB that can be payable on the record of a worker receiving SSDI is 150% of their PIA. So for example, if a worker's full SSDI rate (PIA) is $1,600, the FMB on their record would be limited to $2,400. That leaves $800 to potentially be paid to eligible family members. Since child's benefits are calculated based on 50% of the living parent's PIA, if only a single child was eligible for benefits in this example the child would get their full benefit amount of $800. However, if two children were eligible they'd have to split the $800 available from the FMB and receive $400 each.

What is the WEP guarantee?

Hi Luis, As you state, the Windfall Elimination Provision (WEP) guarantee amount is calculated based on 50% of the amount of your non-covered pension in the first month that you're entitled to both the non-covered pension and Social Security benefits. If you're already receiving Social Security benefits when you first become entitled to a non-covered pension, then the WEP guarantee would be based on the amount of your non-covered pension in the first month of your entitlement to the non-covered pension.

What is the excess spousal benefit?

The excess spousal benefit equals 50% of your PIA minus 100% of her PIA. If she files for her retirement benefit before her FRA, it will be permanently reduced. So her excess spousal benefit, added to her reduced retirement benefit amount will be somewhat less than 50% of your PIA.

What is a COLA on Social Security?

If you're receiving a Social Security benefit that's reduced due to WEP, any subsequent cost of living adjustments (COLA) are applied to the reduced benefit rate. Best, Larry

Who is Larry Kotlikoff?

Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc, which markets Maximize My Social Security and MaxiFi Planner.

Can I collect child benefits on my parents' Social Security?

Hi Helen, In your case, yes . Child's benefits payable on the record of a living parent are normally payable at a rate of 50% of the parent's primary insurance amount (PIA). A person's PIA is equal to their full Social Security disability (SSDI) benefit rate, or their Social Security retirement benefit rate if they start drawing at full retirement age (FRA). However, there is a family maximum benefit (FMB) that can be paid on any person's Social Security record, and that can cause the benefit amount payable to eligible family members to be reduced.

Does Social Security increase cost of living?

Hi Sally, I'm sorry for your loss. Yes. Social Security cost of living increases (COLAs) apply to all types of benefits issued by the Social Security Administration, including widow's benefits. Best, Larry