Assessing Eligibility for Spousal Social Security Benefits: Essential Facts to Consider Prior to Submission.
Assessing Eligibility for Spousal Social Security Benefits: Essential Facts to Consider Prior to Submission.
Generally, to qualify for Social Security retirement benefits, you need to work and contribute to the program through payroll taxes on your income. However, there's a possibility to collect Social Security as a retiree without ever having worked a day.
If you're eligible for spouse benefits, you can collect Social Security based on your partner's earnings record. However, Social Security spouse benefits rules can be quite complex. Here are a few things to keep in mind if you're considering applying:
1. Even if you're divorced, you can still claim spouse benefits from your ex-partner's record
You might assume that if you're no longer married to your ex, you're not eligible to collect Social Security benefits based on their earnings record. But that's not always the case.
Being divorced doesn't automatically disqualify you from receiving Social Security spouse benefits. To be eligible, however, you need to have been married to your ex for ten years or more. And if you've since remarried, you can't collect Social Security benefits based on your former spouse's record unless your current marriage ends - either through annulment, divorce, or death.
If you claim Social Security spouse benefits based on an ex-spouse's record, it won't affect their benefits at all. It also won't affect any spousal benefits their current spouse may be eligible for.
2. If you're married, you'll need to wait until your spouse claims Social Security to file for spouse benefits
If you've been divorced for at least two years, you can apply for Social Security spouse benefits, even if your ex hasn't yet claimed their benefits. But if you're married, you'll need to wait until your spouse files for their Social Security benefits before you're eligible to receive a spouse benefit.
This means it's important for you and your spouse to discuss your filing options together. They may want to delay their Social Security claim to receive a larger monthly benefit, but if that means you have to delay collecting your spouse benefit, your partner may need to adjust their plan.
3. Your spouse benefit is capped at 50% of your spouse's benefit at full retirement age
When you're collecting Social Security benefits based on your own earnings record, delaying your claim beyond your full retirement age can increase your monthly benefit by up to 8% for each year you wait, up to age 70.
But when you're collecting Social Security benefits based on your spouse's earnings record, there's no such thing as boosting your benefit. The most Social Security will pay you in spousal benefit form is 50% of what your spouse is entitled to at their full retirement age.
For instance, if your full retirement age is 67 and your spouse's full retirement age is also 67, and at that point, your spouse will be entitled to a monthly benefit of $2,000, the most you can get from Social Security in spousal benefit form is $1,000. There's no benefit to delaying your filing beyond your full retirement age if it means you miss out on collecting your full spousal benefit of $1,000.
Understanding how Social Security spouse benefits work can help you plan for your retirement more effectively. If you're still married, sit down with your spouse and familiarize yourself with the rules. And if you're divorced, make sure you have all the information you need to claim your spouse benefits from Social Security at the right time.
After retirement, you might need to consider your finance and money management strategies, as your income sources might change. If you're eligible, you can collect Social Security spouse benefits based on your spouse's earnings record, which can serve as a valuable source of income during your retirement years.