Social Security is often viewed as a mandatory retirement investment. That’s a mostly accurate assessment. Additionally, employers are required to contribute to their employees’ retirement accounts.
Additionally, Social Security allows spouses to receive benefits based on their spouses. How do the Social Security benefits for spouses work? All retired couples should be aware of these four points.
These are the most common questions regarding spouse Social Security benefits in the US
When is it possible for a spouse to get spousal Social Security benefits?
You cannot receive spousal Social Security benefits before your spouse does. However, you may be eligible to receive a spousal benefit from Social Security before your spouse reaches full retirement age.
Additionally, your spouse may be eligible for Social Security disability or retirement benefits.
Your age is also important.To claim spousal benefits, you must be at least 62 years old, the earliest age for retirement payments.
However, there is one exception to this rule that all recipients should be aware of. You can apply for spousal benefits at any age if you are caring for a child under the age of sixteen or if your spouse has a disabled child eligible for Social Security benefits.
What is the expected Social Security benefit amount for spouses?
The amount of your spouse’s Social Security benefit is determined by his or her full retirement age. If you wait until you reach full retirement age to claim spousal benefits, you may be eligible for up to half of your spouse’s benefits.
But there’s a catch. The Social Security Administration (SSA) compares retirement benefits based on work history with spousal benefits based on spouse’s benefits. Thus, in these circumstances, you will receive the greater of the two amounts.
Remember to file for both your spousal and retirement benefits simultaneously. This is called “deemed filing.” It went into effect in January 2016 to prevent people from filing for multiple benefits simultaneously in order to increase their income. Is it possible to collect spousal benefits before you reach retirement age?
Yes, you can. If you receive benefits before your normal retirement age (up to 36 months), your payments will be reduced by 25/36, or 1%. If you retire more than 36 months before your full retirement age, you will receive a monthly reduction of 5/12ths of one percent.
After reaching full retirement age, would it make sense for couples to postpone spousal benefit claims?
Waiting until after the full retirement age to apply for Social Security benefits allows your spouse to get more retirement payments.
Delaying benefit claims until age 70 increases retirement benefits for anyone born in 1943 or later by 8% annually. For many, waiting can result in a maximum rise of 24%, which is a good return on investment.
Does delaying spousal benefit claims after reaching full retirement age assist spouses? Sadly, no. The maximum amount of spousal benefits you can get is half of what your spouse would get at full retirement age.
Does a divorced spouse have the right to receive spousal benefits?
Depending on your ex-spouse’s work history, you may be eligible for spousal Social Security benefits even if you are divorced.
The caveat is that you must have been married for at least ten years. Furthermore, according to Social Security Administration regulations, “some valid non-marital legal relationships” may qualify for spousal benefits.
Also See : If you haven’t received your Social Security refund yet, here’s how to check it