how to maximize spousal social security benefits

^{How to Maximize Social Security Spousal Benefits – Rules & Eligibility}

• “File and Suspend” Option. If people want their spouses to receive Social Security but want to defer their own benefits, they could file for and subsequently suspend payments.
• “Restricted Application” Option. Social Security beneficiaries who are married to other Social Security beneficiaries can file for benefits, but restrict their application to the spousal benefit, rather than drawing on ...
• Widow or Widower Benefit. A surviving spouse is entitled to an amount up to 100% of the deceased spouse’s benefit, assuming the surviving spouse is at retirement age.
• Factors to Consider When Electing Spousal Benefits. Calculations of Social Security benefits can be complicated depending upon the earning records of each spouse, and the age at which they begin ...
• General Principles for Electing Social Security Benefits. Deciding when to begin Social Security benefits should only be done after careful analysis. ...

Full Answer

When should I take Social Security to maximize my benefits?

You can expect the following when applying for Social Security spousal benefits:

• 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.

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How to maximize your Social Security retirement benefits?

This will net you the lowest possible benefit, as depending on your lifetime earnings record, you will need to draw on your total Social Security earnings years earlier than “full retirement age.”

How gay couples can maximize their Social Security benefits?

Women tend to live longer than men, and they depend more on Social Security as a primary source of retirement income. Also, their benefits ... same-sex couples, a lower-earning spouse can claim ...

How to maximize social security survivor benefits?

Today's Social Security column addresses questions about when to file to maximize spousal and survivor benefits, when continued earnings do and do not increase benefit rates and whether benefits can be withheld to pay off back taxes. Larry Kotlikoff is a ...

How can I maximize my spouse's Social Security benefits?

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.

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 of husbands Social Security does a spouse get?

32.5 percent to 50 percentDepending 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 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 collect ex spousal benefits and wait until I am 70 to collect my own Social Security?

You can only collect spousal benefits and wait until 70 to claim your retirement benefit if both of the following are true: You were born before Jan. 2, 1954. Your spouse is collecting his or her own Social Security retirement benefit.

How long do Social Security spousal benefits last?

for lifeGenerally, spouses and ex-spouses become eligible for survivor benefits at age 60 — 50 if they are disabled — provided they do not remarry before that age. These benefits are payable for life unless the spouse begins collecting a retirement benefit that is greater than the survivor benefit.

Can I collect my husband's Social Security if he is still alive?

The earliest a widow or widower can start receiving Social Security survivors benefits based on age will remain at age 60. Widows or widowers benefits based on age can start any time between age 60 and full retirement age as a survivor.

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 percentage of Social Security for spouse?

The percentage of your spouse's Social Security that you receive starts at 32.5% at age 62 and steps up gradually to 50% at your full retirement age, 66 or 67 depending on your year of birth. The amount is based on your spouse's benefit at full retirement age. 15 . The important point is this: Don't bother delaying past your full retirement age.

When can I claim my spousal benefits?

But the amount you receive will depend upon when you begin to claim it. 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.

What is the maximum amount of spousal benefits at 62?

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. The amount increases with each year you delay. At your full retirement age (67 in this example) you'd be eligible for the maximum, which is 50% ...

What happens if your spouse retires at 70?

If your spouse delays retiring until 70, the spouse gets more but you don't. Survivors may receive up to 100% of the deceased person's Social Security amount. 10  There's a complicated formula for families in which more than one dependant is eligible for benefits. It caps the maximum. 16 .

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 .

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 .

How much can I get from my spouse?

The maximum amount you can receive is 50% of your spouse's full benefit. 1  That's straightforward enough, but the precise amount you'll get and when you'll get it depends on several circumstances, including your spouse's age and work history, your own age and work history, and more. That leaves some room for you to maximize ...

Who Is Eligible For Social Security Spousal Benefits?

The name would imply that a spouse of a benefit recipient is eligible to receive these spousal benefits. While that is true, there are also some special cases which we will cover here. The most basic case of eligibility is the spouse of a benefit recipient. If your spouse qualifies for benefits, then you are entitled to spousal benefits as well.

How Much To Expect From Spousal Benefits

The general answer to this is simple, although the devil is always in the details. Generally, the amount of your spousal benefits will be 50% of the amount of benefits to which your spouse is entitled. That is assuming that you wait until full retirement age to begin receiving your benefits.

Spousal Benefits For Divorced & Widowed Spouses

If you are divorced or your spouse is deceased, you can still be eligible to receive monthly benefits because of your former spouse’s work history. Here we will cover the details of how each of these situations is handled.

3 Tips For Maximizing Your Spousal Benefits

Everyone wants to receive the maximum benefit possible, and that just makes sense. It makes retirement planning easier and gives you a little more room to breathe with your budget.

The Bottom Line

There are a few key takeaways here that we will highlight when it comes to receiving spousal benefits from Social Security. First, you need not be currently married to receive these benefits. Even if you are divorced or your spouse is deceased, you can still receive these benefits in many cases.

Frequently Asked Questions (FAQ)

Spousal benefits follow the same tax rules as primary Social Security benefits. Whether or not your benefits are taxed depends on your overall household income. If your combined income is less than $32,000, then you will not owe any income taxes on your benefits.

What age does a spouse get spousal benefits?

Mix and Match. In this case, one spouse takes a regular benefit at age 67 while the other takes a spousal benefit. Jane files for her regular benefit of $2,000 while Bill uses the restricted application to file for spousal benefits of $1,000 per month, deferring his own benefits until age 70.

How much is Sylvia's spousal benefit?

Sylvia’s own benefit of $1,500 is greater than her spousal benefit of $1,150. The couple’s combined monthly income is $3,800. In the event of one partner’s death, the benefit amount would revert to $2,300, the full amount of Matt’s benefit. Matt Takes His Full Benefit While Sylvia Uses Her Spousal Benefit.

How much does Social Security increase if you wait to retire?

Social Security provisions allow you or your spouse to delay benefits past your normal retirement ages, a valuable option if you are able to afford it. For each year up to age 70, your benefit increases 8% per annum. So if Mary is due to receive $1,000 at age 67, that figure increases to $1,240, or 24%, if she waits until age 70.

How much of a deceased spouse's benefit is a surviving spouse entitled to?

A surviving spouse is entitled to an amount up to 100% of the deceased spouse’s benefit, assuming the surviving spouse is at retirement age. The following examples illustrate the calculation of benefits:

How much do Matt and Sylvia get paid?

Matt and Sylvia are age 67, their normal retirement ages. Matt, a former executive, is entitled to receive $2,300 monthly, while Sylvia, an employee of a local charity, is entitled to $1,500 per month. Both partners are in good health and likely to live as long or longer than their projected life expectancies.

What is the normal age for Social Security?

Under Social Security regulations, your “normal retirement age” is the statutory age established by Congress at which you or your spouse can receive normal retirement benefits. For example, if you were born in 1960 or later, it is age 67.

How much Social Security does Mary receive from Tom?

If Tom has a $2,000 benefit, and Mary has elected to receive half of Tom’s Social Security for a $1,000 spousal benefit, the two have a total monthly income of $3,000. At Tom’s death, Mary would continue collecting a $2,000 benefit, but would no longer be eligible for her $1,000 spousal benefit.

What is spouse social security?

Spousal Social Security benefits allow one spouse to claim benefits off of another spouse’s work record. This benefit was put in place to allow income for both spouses when one person served as the primary income earner. There are a variety of factors that determine the amount of your benefit including your age, your spouse’s primary insurance amount, and whether you have your own benefits available to you.

Can a married couple get Social Security?

Spousal Social Security benefits can offer a great deal of income support for many married couples and widowed spouses alike. No two relationships are exactly the same. Your needs as a couple are unique and it is important that you are able to create a plan that honors your needs both now and in the future.

What is the maximum amount of spousal benefits a spouse would get if they were 62?

For example, a spouse whose full retirement age is 67 but who starts spousal benefits at 62 would get about one-third of the amount the higher earner receives, instead of half. If the higher earner starts early as well, that causes a further reduction.

What is the most important factor in claiming Social Security?

Key consideration: Survivor benefits . Survivor benefits are another important factor in Social Security claiming strategies. If you’re single and make a mistake about claiming Social Security, you’re the one who has to suffer the consequences.

How does Social Security calculate your retirement?

Social Security will calculate your own retirement benefit, based on your 35 highest-earning years, and then calculate your spousal benefit, based on your partner’s 35 highest-earning years. If your spousal benefit is greater, Social Security will pay you your benefit first and then add the amount necessary to match your spousal benefit.

What is the retirement age for a married couple?

Here are some important things to know: Spousal benefits for married people are permanently reduced if either spouse applies before their own full retirement age, which is currently 66 and rising to 67 for people born in 1960 and later.

How long can a 65 year old woman live?

Currently, a 65-year-old man will live to 84, on average, while a 65-year-old woman can expect to live to 86.5, on average, according to the Social Security Administration.

Do people who earn less than their mates get more Social Security?

People who earn much less than their mates often get more from their Social Security spousal benefits than they would receive based on their own work records. More options for claiming can also mean more opportunities for mistakes, however. While the right choices can help people live more comfortably in old age, ...

Does spousal benefit get delayed retirement?

However, spousal benefits don’t get delayed retirement credits, and so would max out at the lower earner’s full retirement age.

When can I file for spousal retirement?

At full retirement age you can file a restricted application to get your spousal benefit; wait until age 70 to collect your retirement benefit, which will have grown in the interim. (Again, you only can use the restricted application option if you were born on or before January 1, 1954.)

How much will Social Security increase if you retire at 66?

If you’re currently at the full retirement age of 66, for instance, waiting until you’re 70 years old to claim will raise your retirement benefit a guaranteed 8 percent annually. You can use the Social Security’s Retirement Estimator to figure out how much you’ll gain by waiting until age 70. If you didn’t pay into Social Security ...

When can I start taking Social Security?

While you’re allowed to start taking Social Security at age 62, it’s a good idea to wait until you’re 70 to start. According to a recent survey by Nationwide Retirement Institute, a research arm of the giant insurer, 30 percent of pre-retirees expect to draw Social Security before their full retirement age.

Is it easy to maximize Social Security?

Maximizing your Social Security benefits isn't easy, especially since there are hundreds of rules governing payments alone. But since most retired Americans depend primarily on Social Security, it's important to get everything you're entitled to.

Can I claim my spouse's spousal benefits?

Keep in mind that you can only claim the spousal benefit if your spouse has already filed for a retirement or disability benefit. If you both worked but your spouse made significantly more income, you may want to claim the spousal benefit instead of taking your own retirement benefit—it could turn out to be more.

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 ...

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 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 get spousal benefits?

The Two Exceptions to Know Around the 1 Year Marriage Requirement. Normally, you must be married for at least 12 continuous months to meet the spousal benefit duration-of-marriage requirement. However, there are two exceptions to this rule.

How much of my spouse's Social Security is my full retirement?

Remember, in that case, it’s between 32.5% and 50% of the higher-earning spouse’s full retirement age benefit, depending on your filing age. However, it can seem a little more complicated if you have Social Security benefits from your work history.

Can a spouse receive Social Security?

They have no benefit of their own, but thanks to the Social Security spousal benefit available under their spouse’s work record, they can still receive payments. This particular benefit doesn’t just provide retirement income, either. As an eligible spouse, you could also receive premium-free Medicare benefits.

Understanding Spousal Benefits

Survivor Benefits

Ex-Spouses

Your Benefits Your Way

• Married couples have a unique opportunity to maximize their Social Security benefits with great planning and strategy. Spousal Social Security benefits can offer a great deal of income support for many married couples and widowed spouses alike.No two relationships are exactly the same. Your needs as a couple are unique and it is important that you ...

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