To be eligible for Social Security spousal benefits, you need to have married someone who qualifies for Social Security retirement benefits. Married individuals can start receiving benefits after being married for one year. Additionally, ex-spouses may be eligible if they were married to the worker for a minimum of 10 years and have not remarried.
Qualifying for Social Security spousal benefits and actually receiving them are not always synonymous. There are situations where you may be eligible for the benefit but still not receive it, which is not as unfavorable as it may seem.
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Opting for spousal benefits may not always be the most advantageous choice for you.
You may be eligible for benefits for spouses If you haven’t accumulated enough work credits to qualify for Social Security retirement benefits, you need to earn a minimum of 40 credits by earning $1,730 in 2024 for each credit. You can earn a maximum of four credits per year. Some workers are eligible for benefits from their own work history as well as from their spouse’s.
The Social Security Administration will only provide the workers with the higher of the two benefits available to them. If the spousal benefit is greater, they will receive that amount. However, if their own retirement benefit is higher, they will receive that instead of the spousal benefit.
Partners who have similar earnings backgrounds are more inclined to receive their own retirement benefits rather than spousal benefits, due to the calculation method for spousal benefits. The maximum spousal benefit one can receive is half of the retirement benefit that their spouse is entitled to. The age at which a person can receive their full retirement benefits is known as the full retirement age (FRA). To receive the full amount of spousal benefits, individuals aged 66 to 67 must wait until they reach their Full Retirement Age (FRA) to apply for them.
If you choose to claim your retirement or spousal benefits before reaching your Full Retirement Age (FRA), both benefits will be reduced, but spousal benefits will be reduced more significantly. Retirement benefits decrease by 5/9 of 1% for each month you claim early for the first 36 months, whereas spousal benefits decrease by 25/36 of 1% per month. Additionally, the Social Security Administration further reduces both benefits by 5/12 of 1% for each month you apply more than 36 months early.
In relationships where one partner earns substantially more than the other, it is possible that the lower-earning individual may receive a higher spousal benefit compared to their own retirement benefit. However, the lower-earning partner can only access the spousal benefit after the higher-earning partner has already submitted their application for Social Security benefits.
What this signifies for you
Predicting whether you will be eligible for a spousal benefit or a retirement benefit can give you an idea of the amount of retirement income you may receive from Social Security. Luckily, it is not necessary to perform complex calculations to determine which benefit may be greater.
The Social Security Administration offers a tool that predicts your monthly retirement benefit for each claiming age by using your past earnings and forecasting your future income. Simply create a my Social Security profile to examine it.
You can also utilize this account to calculate your spouse’s benefit. To do so, you must be aware of the monthly benefit your partner is eligible for at their full retirement age (FRA). After obtaining this information, you can enter it into your my Social Security account to see the estimated spousal benefits.
After you obtain this information and make a decision at the time you wish to apply for Social Security benefits You can determine the percentage of your monthly expenses that will be covered by your benefits, which can assist you in calculating. The amount you need to save independently. to include the remaining portion.
While it’s a solid beginning, it may be necessary to go through this procedure repeatedly. The future of Social Security is currently somewhat ambiguous. Any alterations made by the government to the system could impact the amount you receive and the amount you should set aside for retirement savings.
