Millions of married and divorced Americans may qualify for Social Security spousal benefits, but confusion over the rules could mean retirees miss out on retirement income.
A
survey conducted by the Nationwide Retirement Institute last summer found that 30 percent of adults incorrectly believe Social Security does not offer spousal benefits, while 50 percent wrongly think divorced spouses are ineligible.
How Spousal Benefits Work
Spouses can claim Social Security based on a partner’s work record, even with little or no work history of their own, if certain requirements are met.
To qualify, couples must have been married for at least one year. The spouse must be at least 62 years old, or caring for a child under 16, or caring for a child receiving Social Security disability benefits. The worker spouse must also be receiving Social Security retirement benefits.
Spousal benefits can be up to 50 percent of the retired worker’s primary insurance amount. “Receiving benefits on your spouse's earnings record does not affect the amount of the retirement or disability benefit that your spouse receives,”
states the American Association of Retired Persons (AARP).
Primary insurance amount is the full benefit a worker receives at full retirement age. “For individuals born in 1960 or later, full retirement age is 67. For individuals born between 1955 and 1959, the FRA is 66 and some months. Benefits can be claimed as
early as 62, but at a reduced rate,” according to the Social Security Administration (SSA).
If you claim spousal benefits at 62, you receive just 32.5 percent of your spouse’s primary insurance amount.
If you wait until your full retirement age, the benefit is capped at 50 percent of your spouse’s full benefit. For example, if your spouse’s full benefit at full retirement age is $2,000, your maximum spousal benefit would be $1,000.
Coordinating Spousal Benefits
If both spouses worked, you may be eligible for both your own retirement benefits and spousal benefits, according to the SSA.“If you qualify for your own retirement and spouse's benefits, we will always pay your own benefits first. If your benefit amount as a spouse is higher than your own retirement benefit, you will get a combination of the two benefits that equals the higher amount,”
states the SSA. This means Social Security automatically selects the higher of your own retirement benefit or your spousal benefit.
Divorced Benefits
Divorced individuals may qualify for spousal benefits if the marriage lasted at least 10 years, the person is unmarried and at least 62, and the divorce has been final for at least two years.
Claiming benefits on a former spouse’s record does not reduce their benefits, and they aren’t notified when a claim is filed,
according to AARP.
According to the SSA, on a page last reviewed or modified March 31, titled “If You Had A Prior Marriage,” the SSA defines a prior marriage as one that ended due to divorce or the death of a spouse.
“If you were married to the same person more than once during a 10-year period, you or your ex-spouse may still qualify," states the SSA. "We can count those marriages as one if you remarried no later than the calendar year after the year the divorce became final.”
Complex Marital Histories
The rules are more complex for people who have had multiple marriages, divorces, or remarriages. The Association of Mature American Citizens (AMAC)
notes that spousal benefits are not necessarily limited by remarriage or divorce.
“Many people assume that once they’ve remarried or gone through a divorce, their options are limited,” said Deborah Dunlap, Social Security Advisor at the AMAC Foundation. “That’s often not the case.”
The SSA
recommends making an appointment with a local office or online to review spousal benefits eligibility for those with complex marital histories.
