How Do Spousal and Survivor Social Security Benefits Work?

To continue our celebration of National Social Security Month, we are going to talk about a facet of the system that many people overlook and find confusing: spousal and survivor benefits. 

Social Security benefits aren’t limited to one person; spouses, ex-spouses, and surviving spouses are all entitled to additional benefits. Let’s take a look at how each of these works to give you a better idea of how it could be applied to you. 

Spousal Social Security benefits

Spousal Social Security benefits were designed to help both partners in a marriage receive monthly benefits. A spouse may claim up to 50% of their partner’s benefit as their spousal benefit. 

In order to be eligible for a spousal benefit, the following must be true:

• You are at least 62, though waiting until full retirement age, FRA (67 for those born 1960 or later) can increase your benefit
• You have been married for at least 10 years
• Your spouse must already actively claim their benefits

A common misconception with spousal benefits is that they reduce the benefit of your spouse. This is not true, both benefits are mutually exclusive, a spousal benefit is simply determined by the work record of one spouse. 

The maximum spousal benefit you can receive is 50% of your spouse’s benefit which is calculated at their full retirement age. If you have a work record, you can also receive benefits from your individual record. 

The Social Security Administration will pay you the higher of the two amounts (your work record or your spouse’s work record). You can no longer apply for benefits both on your spouses and your own work record. Let’s take a look at an example to help illustrate this point. 

Mike and Miranda have been married for 25 years. Miranda has been in the workforce longer than Mike, making her work record more robust. At her full retirement age of 67, Miranda is eligible for a $1750 monthly benefit. Mike files for a spousal benefit at his full retirement age and will receive 50% of Miranda’s benefit, leaving him with $875 per month. 

But, if Mike’s work record would allow him to receive a monthly check higher than his spousal benefits, the Social Security Administration would pay the higher of the two amounts. Say, for example, on his own work record, Mike’s benefit would be $1000. The SSA would pay Mike the $1000 off his own record as opposed to the $875 off of Miranda’s record. 

Remember, by collecting benefits early, you will see a permanent reduction over the course of your life. This is true for traditional and spousal benefits. 

Benefits for ex-spouses

Ex-spouses are still entitled to receive spousal benefits on their former partner’s work record if the marriage lasted for at least 10 years and if the person filing for benefits has not remarried. It is important to know that you are still able to claim benefits if your former spouse remarries. 

The process for ex-spouses works the same way as a traditional spousal benefit. You would be entitled to a maximum of 50% of your ex-spouse’s benefit. If you have your own work record, you would receive either your benefit or your spousal benefit, whichever is higher. 

Claiming this benefit won’t impact your former spouse’s benefit, nor will they be notified when you do start claiming benefits. This process is all individual. As an ex-spouse, you don’t have to wait until your former partner claims benefits in order to claim yours, which differs from the rules of current spouses.

Survivor benefits

For those who have a spouse pass away, they are entitled to receive survivor benefits as long as the marriage lasted at least 9 months. This time frame can be waived if you are caring for a child under 16. 

Unlike traditional Social Security, a survivor can apply for benefits as early as age 60 should they need to. The maximum survivor benefit is 100% of the late spouse’s benefit if the person filing has reached their full retirement age. Benefits decrease based on how far below FRA you are when you claim. 

The way that you take your survivor benefit is determined by when you and your spouse begin claiming benefits. If neither of you has claimed benefits, you can maximize the survivor benefit by having the higher-earner delay enrolling until 70. This increases the overall benefit and will become the survivor benefit for the remaining spouse. 

If both you and your spouse have already claimed your benefits, the higher of the two payments becomes the survivor benefit and the smaller payment will be stopped. 

If your late spouse started collecting benefits but you have not, you may be able to restrict your application in order to maximize both the survivor benefit and the benefit from your own work record. For example, you may be able to take the survivor benefit and delay your credits until age 70 when you switch to benefits from your own record that would be higher than the survivor benefit. It is important to discuss this and other Social Security strategies with your financial advisor.

Ex-spouses are entitled to the same survivor benefits if their former spouse passes away as long as the marriage lasted at least 10 years.

Understanding your benefit

Couples have different strategies to consider when it comes to collecting Social Security benefits. The most important thing is maximizing your benefit in order to give you the life you and your spouse want in retirement. 

Spousal and survivor benefits are important and complex facets of Social Security. Working with a trusted professional that can help outline your options and set you up for the best chance of success is the best way to maximize this benefit. 

We are focused on family wealth management here at Legacy Wealth. Finances are a family matter and we are there to support yours as you navigate the many twists and turns that come with these transitions. How can you maximize your spousal Social Security benefits? Schedule a 15-minute call with us to find out. We can’t wait to hear from you.