Married couples share almost everything: food, home, vacations and more. In some cases, they may even share Social Security retirement benefits.
The Social Security program has included spousal benefits since its beginnings in the 1930s. Here are three things every retired couple should know Spouse’s social security benefits.
1. Conditions of eligibility for spousal benefits
Can you receive Social Security retirement benefits based on your spouse’s employment history? Only if you meet specific eligibility requirements.
First, you generally must have been married to your spouse for at least one year before you can receive Social Security spousal benefits. However, this does not apply if you are the parent of your spouse’s child. Former spouses may also be eligible for spousal benefits if they have been married for at least 10 years.
Second, you must be at least 62 years old to claim spousal benefits, with some exceptions. If you are caring for a child who is 16 or younger, the age requirement is waived. The same is true if you are caring for a disabled child who is 17 or older and who is eligible for Social Security dependent benefits based on your spouse’s record.
Third, your spousal benefit cannot be more than the amount you would receive based on your own income. If not, the Social Security Administration (SSA) will pay you based on your own work record rather than your spouse’s.
2. Potential amount of spousal benefit
The maximum spousal benefit is 50% of the income of the spouse with the higher income. primary insurance amount (PIA). The PIA is the amount of the benefit for the spouse with the higher income at full retirement age. For anyone born in 1960 or later, the full retirement age is 67.
Spouses, however, will not receive this maximum benefit if they begin receiving benefits before full retirement age. The Social Security early retirement penalty will apply, with benefits reduced by five-ninths of 1 percent for each month up to 36 months before reaching full retirement age and by five-twelfths of 1 percent for each month before that age. However, if a spouse is caring for a qualifying child, the spousal benefit will not be reduced.
Note that the spousal benefit is not calculated based on when the higher-earning spouse begins receiving their retirement benefits. If that spouse retires early or waits until age 70, it will not change the amount of the spousal benefit. However, it would affect the survivor benefit if they die.
3. Deemed deposit
The Bipartisan Budget Act of 2015 made a significant change often called the “deemed deposit” rule that affects Social Security spousal benefits. Deemed filing means that when individuals apply for spousal benefits, they must also simultaneously file an application for their own retirement benefits. In the past, people could apply for spousal benefits before reaching full retirement age, but wait to apply for their own retirement benefits until they reach retirement age at full rate.
However, the deemed filing rule does not apply if you receive spousal benefits because you are caring for your retired spouse’s eligible child. This also does not apply to survivor benefits. If your spouse dies, you can begin receiving Social Security survivor benefits without applying for your retirement benefit.
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Social Security Benefits for Spouses: 3 Things All Retired Couples Should Know was originally published by The Motley Fool
