Maximizing Spousal Social Security Benefits for Married Couples, #269

For married couples planning their retirement, understanding spousal Social Security benefits can seem like a labyrinth. This week, I’m answering a listener's question about how spouses can maximize their Social Security benefits.

Join me as I break down the key rules, eligibility requirements, and strategies that can help you and your spouse make the most of your benefits over your lifetimes. 

Whether you're nearing retirement or still a few years away, I can help you understand primary insurance amounts, full retirement age, and what happens if one spouse claims benefits early.

If you want to ensure you and your loved one have a smart plan for Social Security, this episode offers essential insights and actionable advice.

You will want to hear this episode if you are interested in...

• [02:33] Eligible spouses may receive at least half of their partner's full retirement benefit.
• [05:25] How much of a spousal benefit will you receive? 
• [07:42] Strategies to manage spousal benefits.
• [09:54] Spousal benefits are reduced by $1 for every $2 earned over the limit.
• [10:30] Applying for a spousal benefit.

Understanding Spousal and Survivor Social Security Benefits 

Spousal benefits exist to ensure that partners in a marriage—including those who spent little or no time in the workforce—can still access a stable retirement income.

If you’re married, you could be eligible to receive up to half of your spouse’s full retirement benefit, commonly referred to as their Primary Insurance Amount (PIA).

This benefit is designed for spouses who don’t qualify for a significant benefit on their own due to having spent less time in the workforce, perhaps because they were caring for the home or raising a family.

At a minimum, every spouse can claim at least 50% of their partner’s PIA, but only if their own benefit is less than this amount. This safety net helps ensure that lower-earning spouses are not left without Social Security support in retirement.

Eligibility Requirements: Who Qualifies and When?

To collect a spousal benefit, several conditions must be met:

• The Higher-Earning Spouse Must File: You cannot receive a spousal benefit until your spouse has filed for their own Social Security retirement benefit.
• Minimum Age: The spouse collecting the spousal benefit must be at least 62 years old.
• Marriage Requirements: You must be legally married, though in some states, common law marriages are recognized.
• Timing Matters: To collect the full 50%, you must wait until your own full retirement age, which is generally 67 for those born after 1960. Claiming earlier results in a reduced benefit, often as low as 32.5%-37.5% of your spouse’s PIA if you file at age 62.

For example, in the listener scenario discussed in the episode, the wife began her benefit at 64. Because she started before her own full retirement age, she is only eligible for 37.5% of her husband’s benefit—less than half.

Strategies for Maximizing Spousal Benefits

Determining when to claim Social Security is a nuanced decision:

Higher-Earning Spouse Delays, Lower-Earning Spouse Claims Early: Often, the lower-earning spouse might claim their own benefit early, while the higher earner waits until full retirement age or even 70 to claim. This maximizes the survivor benefit for the lower earner, as a widow or widower can "step up" to the deceased spouse’s higher benefit.

Cost of Living Adjustments (COLA): Increases in Social Security benefits due to COLA apply both to individual and spousal benefits. Because COLA is a percentage, it may cause dollar amounts to shift, but it will not change the eligibility for claiming spousal benefits unless there is a significant gap.

Survivor Benefits: If the higher earner passes away, the surviving spouse can "take over" the higher benefit. This makes it advantageous for the higher earner to delay benefits if the couple is concerned about long-term financial security.

How to Apply for Spousal Benefits

Applying is straightforward and can be done online at SSA.gov, by calling the Social Security office, or in person. Be prepared to provide proof of age, a marriage certificate, and possibly your spouse’s work records.

Maximizing Social Security as a couple comes down to knowing the rules, timing your decisions, and using strategic thinking to boost your household’s retirement income.

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• Download my entire book for FREE 
• Benefits for Spouses 
• Collecting Divorced Social Security Benefits Ep41

Connect With Morrissey Wealth Management 

www.MorrisseyWealthManagement.com/contact

 

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