Women in the US still get paid less than men and are 3 times more likely to have a gap in their earnings due to caregiving for a child or a parent. Lower earnings throughout a woman’s career impacts future Social Security benefits and can dramatically lower her overall retirement savings. One way that married (or divorced) women can address this savings gap is tapping Social Security spousal benefits.

Understanding Social Security Spousal Benefits

One of the best features of Social Security is spousal benefits. This benefit is designed to provide support to eligible spouses, enabling them to receive a portion of their partner's Social Security retirement or disability benefits. These benefits are particularly beneficial for spouses who have limited or no work history of their own or whose individual benefits are lower than what they would receive as a spousal benefit.

The spousal benefit amount is generally based on a percentage of the primary worker's benefit. If the eligible spouse claims the benefit at their full retirement age (67 in most cases), they are entitled to 50% of their partner's full retirement benefit. However, claiming earlier than their full retirement age will result in a reduction in the benefit amount.

For more explanation about Social Security calculations, see our previous blog post here.

Eligibility Requirements:

To be eligible for Social Security spousal benefits, certain criteria must be met:

1. Marriage: The couple must be legally married. Common-law marriages are also recognized if they meet specific requirements.

2. Duration of Marriage: In most cases, the marriage must have lasted at least one year for spousal benefits to be applicable. However, exceptions exist for situations involving death or disability.

3. Age Requirement: The eligible spouse must be at least 62 years old to claim spousal benefits. However, if they choose to claim before their full retirement age, the benefit amount will be reduced.

It's important to note that married people approaching retirement can simultaneously claim their own benefits and spousal benefits, ensuring they receive the higher amount. The Social Security Administration will automatically pay the higher benefit, taking into consideration both individual and spousal benefits.

When you are married, there is definitely a strategy to deciding when to claim Social Security. If one spouse earned more during their working years, it may benefit both of you to delay taking that spouse’s benefits until age 70 to maximize your retirement income. You can stagger each of your benefit start dates between the ages of 62 and 70. This decision will also be impacted by whether there is a significant age gap between the two spouses.

Understanding Social Security spousal benefits is essential for couples planning their financial future. As part of your annual financial review, it’s a great idea to share your Social Security statements with one another. You can ensure recent earnings have been recorded correctly and that you both understand the benefits amount available and any gaps that will need to be filled through other retirement savings.

Social Security and Divorce

Many people don’t realize that spousal benefits still apply after divorce. As long as you were married at least ten years, and you are not currently married, you are eligible to claim spousal benefits. Your ex will not know that you have done so, and their Social Security calculations and monthly benefit amount will not be affected.

You still must be age 62 to apply for benefits and, if you delay taking your benefit until later the benefit amount continues to increase through your full retirement age and up until age 70. When you apply for benefits on your ex-spouse’s record, they also need to be at least 62 years of age.

Benefits for Widowed Spouses

If you spouse passes away, the surviving spouse may be eligible for survivor benefits even before retirement age. These benefits provide crucial financial support and can often replace the primary worker's benefit entirely

Either with your spouse or on your own, spousal benefits can help boost women’s income in retirement. These benefits serve as a valuable safety net, offering additional support to eligible spouses during retirement or in the event of disability or death. There may be multiple options for you to claim Social Security benefits in retirement and, as you approach your 60s, it is worth making an appointment to meet with your local Social Security Administration office to understand the full picture.

Social Security is only one piece of your retirement funding, but its an important one. If you need support to set retirement goals and achieve them, call a Smart Sister!