Recently, a listener named Rob asked a great question about how spousal benefits work, especially when one spouse claims early and the other waits. It’s a smart question, because spousal benefits can significantly affect your overall retirement strategy if you understand how they’re calculated.

Here’s the key rule: the spousal benefit is capped at 50% of the primary earner’s full retirement age benefit, also known as the Primary Insurance Amount (PIA). So if your spouse’s PIA is $2,000 a month, your maximum spousal benefit would be $1,000 even if they delay their benefit until age 70. That’s because delayed retirement credits don’t increase the spousal benefit.

One of the biggest misconceptions I see is the idea that if one spouse collects early, the other’s spousal benefit will be permanently reduced. That’s not true. Even if your spouse starts their benefit early, your spousal benefit is still calculated from their full retirement age amount not the reduced amount they’re actually receiving.

Now, to qualify for any Social Security benefit, you must have worked 40 quarters, or about 10 years. For 2025, you earn one quarter for every $1,810 of income, up to four quarters per year. Spousal benefits have an additional rule: you must be married for at least one year to qualify. If you’re divorced, you can still qualify based on your ex-spouse’s record as long as the marriage lasted at least 10 years and you haven’t remarried.

It’s also important to understand the difference between spousal benefits and survivor benefits. Spousal benefits are limited to 50% of your partner’s PIA, but survivor benefits can be as much as 100% of what your late spouse was eligible to receive. If your spouse passes away, or if your ex-spouse (whom you were married to for at least 10 years) dies, you can collect a survivor benefit based on their record.

Let’s look at an example. Say your spouse’s PIA is $2,000. If you’re eligible for a spousal benefit, you can receive $1,000 once you reach your full retirement age. If your spouse delays until age 70 and earns an increased benefit, your spousal benefit still remains capped at $1,000 it doesn’t grow with theirs. But if your spouse starts early and gets a reduced benefit, your spousal benefit is still based on the full $2,000 PIA.

Timing matters a lot when it comes to maximizing your benefits. To get the full spousal benefit, you must wait until your Full Retirement Age (FRA) between 66 and 67, depending on your birth year. If you claim earlier, your spousal benefit will be reduced, just like your own retirement benefit would be.

One more important thing: if you qualify for your own Social Security benefit, you’ll receive that amount first. Then, if your spousal benefit would be higher, Social Security adds the difference but the total is still capped at that 50% limit.

When we build retirement plans for clients, we always look at Social Security as part of the bigger picture alongside tax strategies, investment withdrawals, and timing decisions. Optimizing when and how each spouse claims benefits can increase a couple’s total lifetime income by tens of thousands of dollars.

So, if you’re married or were married for at least 10 years, make sure you understand your eligibility for spousal or survivor benefits. Coordinating your claiming strategy could help you stretch your retirement dollars further and reduce the pressure on your investment portfolio.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

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