Deciding when to collect Social Security spousal benefits requires careful timing to get the most from it. Applying too early could significantly reduce the size of your benefit.
In most cases, the spouse of the working person can get maximum spousal benefits equal to half (50 percent) of the other spouse’s benefits. Several conditions apply when determining how much the applicant will receive when submitting their Social Security Administration (SSA) spousal benefits application. Because it could mean a difference of thousands of dollars each year, timing it right is essential.
Social Security Spousal Benefits Eligibility
Spouses may be eligible for spousal Social Security benefits only if their spouse already receives them. You must also be at least 62 to get the benefits. Finance.Yahoo says you must also have been married to the person already receiving benefits for at least one year. Spouses who care for a child under 16 or who get Social Security disability benefits also qualify.Spouses that are caring for a disabled child can receive full spousal benefits. Their benefits will not be reduced even if they file at 62.
Seniors born before January 2, 1954, have a unique option. AARP says they can claim the spousal benefit and wait to claim their retirement benefit later, which would enable their benefits to continue growing. People born after this date do not have this option. It does not apply if you already receive spousal benefits because you are caring for a child under 16 or for a disabled child or if you receive Social Security benefits for being disabled.
The Problem With Claiming Spousal Benefits Too Early
The earliest that a healthy spouse without any qualifying children can apply for Social Security spousal benefits is age 62. For most people, it is not a good idea to claim them that early. Taking benefits at that age will significantly reduce your spousal Social Security benefits. Investopedia says that you will only get 32.5 percent of the potential income you would receive if you wait until your full retirement age—between 66 and 67.You should also know that if you apply for spousal benefits before reaching your full retirement age, your benefit will not increase later. You will get the maximum amount possible if you wait until age 70 to collect your benefits. It will not grow beyond that age and never get more than 50 percent of your spouse’s Social Security income.
The Higher Spousal Benefit Applies
When a spouse applies for SSA spousal benefits, the Internal Revenue Service (IRS) makes two calculations. It will calculate your spousal benefits and any Social Security benefits you have earned while working. You will receive the higher amount of the two.If your spouse is not yet receiving any Social Security benefits, you could get your benefits as early as 62 while waiting for your spouse to claim their benefits. As mentioned previously, applying at 62 will only give you 32.5 percent of any possible spousal benefits. If your living spouse waits until their benefits max out at 70, you could reapply for spousal benefits at that time and get considerably more each month.
Collecting Ex-Spouse Social Security Has a Required Waiting Period
Divorced spouses have a waiting period before being eligible to receive divorced spouse Social Security benefits. Before applying, you must meet two requirements. You will need to have been married for at least 10 years, and you must have been divorced for a continuous period of two years. In addition, the spouse must have been getting Social Security benefits, and you must be at least 62.Remarriage Disqualifies You From Spousal Benefits
The exception to getting divorced spousal benefits, the Social Security Administration says, is whether you have since remarried. Once you remarry, you are no longer eligible to get one-half of a living ex-husband’s benefits unless your second marriage ended in a divorce, annulment, or death.Ex-Spousal Benefits Do Not Affect the Living Spouse’s Benefits
When an ex-spouse is qualified to get Social Security benefits, they can get them, and it will not affect the other spouse’s benefits. The SSA says that children may also be entitled to some benefits—possibly enabling you and other children still at home to get as much as 150 to 180 percent of your Social Security benefit at full retirement age.Calculating Your Spousal Benefits
Finding out how much you may be entitled to in Social Security spousal benefits can be done using the SSA calculator. It will reveal how much you will get from Social Security if you do not have any qualifying children. You only need to enter your birth date, the month you want to start receiving benefits, and when you reach retirement age.Spouse Social Security After Death
After a working spouse dies, Bankrate says that Social Security allows the surviving spouse to choose which benefit they want. They can either get the benefits of the working spouse, or they can choose to get their own benefits if it is higher.Choosing When to Take Retirement Benefits
Although you could take Social Security benefits at age 62, there are several good reasons why you may want to wait. If you are not in a position to need it right away, the amount you can get each month maxes out when you reach 70. If you have good health and expect to live for several more years, you might do better waiting because it would mean getting a much larger benefit each month.
On the other hand, you may need the money for health care, long-term care, or other bills and debt. You may also want to wait to claim your Social Security benefits if you have money from other retirement accounts that you can live on until you turn 70 when the amount is maxed out.
If you need help deciding your best Social Security spousal benefits strategy, you can talk to a retirement attorney or estate planner for more information. They can examine your entire financial picture and show you how to get the maximum benefits.
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