Let’s break it down.

What Are Social Security Spousal Benefits?
Spousal benefits allow you to receive up to 50% of your spouse’s full retirement age (FRA) benefit. That’s right—you can qualify for benefits based on your partner’s work history without reducing their benefit at all.

To be eligible, you must be at least 62 years old, and your spouse must already be receiving either retirement or disability benefits. However, if you claim at 62, you’ll only receive 32.5% of your spouse’s FRA benefit. That’s a permanent reduction, so the timing of your claim matters.

Timing Is Everything
Spousal benefits don’t increase beyond full retirement age like personal benefits do. That means there’s no benefit to delaying past FRA. On the flip side, claiming early permanently locks in a lower amount.

The closer you are to FRA when you claim, the higher the monthly benefit. The sweet spot is reaching FRA—usually between 66 and 67—before applying, so you receive the full 50%.

How Spousal and Personal Benefits Interact
Here’s something that confuses a lot of people: If your personal benefit is higher than your spousal benefit, you’ll get your own benefit. But when you apply, Social Security checks both and automatically gives you the higher amount.

If the spousal benefit is higher, you’ll first receive your personal benefit, then receive a “top-up” to bring you to the spousal level. You can’t claim both in full.

A Real-Life Strategy Example
Let’s talk about Mary and John. Mary claimed her personal benefit early at 62, locking in $700 per month instead of the $1,000 she’d get at FRA. But when John reached FRA at 67 and claimed his benefits, Mary became eligible for spousal benefits. Her monthly income jumped to $1,200.

By claiming early, Mary also collected four extra years of $700/month, totaling $33,600 before switching to the higher spousal amount. That’s a real-world example of how strategic planning can maximize household income.

What If You’re Divorced?
You can still qualify for spousal benefits from an ex-spouse if:

• The marriage lasted at least 10 years.
• You haven’t remarried (unless that marriage ended).
• Your ex is receiving benefits—or it’s been at least two years since the divorce.

This can be a valuable benefit for those who didn’t work long enough to qualify for full Social Security on their own.

Watch Out for the Government Pension Offset
If you worked in a government job and didn’t pay into Social Security but receive a pension, your spousal benefit may be reduced or eliminated. That’s thanks to the Government Pension Offset (GPO).

Also, if you’re still working and haven’t reached full retirement age, your benefits may be reduced based on income. For 2024, the limit is $22,320. Earn over that, and $1 is deducted for every $2 over the limit. After you reach FRA, you can earn as much as you want without affecting your benefits.

What About Survivor Benefits?
Spousal benefits max out at 50% of your partner’s benefit, but survivor benefits can be up to 100%. If your spouse passes away, you may be eligible for their full benefit, depending on your age and circumstances.

This makes survivor benefits a critical piece of planning for married couples.

No More “File and Suspend”—But Smart Strategies Still Exist
One popular loophole—the “file and suspend” strategy—was phased out in 2016. It allowed one spouse to trigger spousal benefits without claiming their own.

While that tactic is gone, strategies like Mary and John’s still exist. You can coordinate when to claim personal and spousal benefits to maximize your payout across your retirement years.

Final Thoughts
Spousal benefits can be a powerful way to increase your Social Security income. The key is understanding the rules, weighing your options, and planning around your household’s unique situation. Don’t leave money on the table.

Whether you’re married now, divorced, or widowed, knowing how these benefits work can make a big difference in your retirement security.

Have questions? Drop them in the comments—I’d love to hear how you’re approaching Social Security planning for your family.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post How Social Security Spousal Benefits Work and How to Maximize Your Household Income appeared first on ROI TV.