A large part of the taxes you pay throughout your working life go to Social Security. For many years this has been one of the most important social programs in the United States, especially in retirement issues, the benefits of this program provide guaranteed income to retirees and helps keep hundreds of people out of poverty.
Retirement benefits do not only apply to those who worked and paid taxes throughout their lives, Social Security also allows spousal benefits, to help non-working or low-income spouses in retirement, who are about to retire or are considering it, there are three things they should know.
How to Calculate Social Security Spousal Benefits
The Social Security Administration (SSA) calculates the monthly benefits of beneficiaries using a formula, which takes into account his 35 years of highest income. However, the couple may be a beneficiary of Social Security, depending on their partner’s income history, if one of the following conditions applies:
- Be at least 62 years old.
- Caring for a child under 16 years of age.
- Caring for a child with a disability, no matter the age.
If the person applying to receive spousal benefits is of full retirement age, he or she is eligible to receive 50% of his or her spouse’s primary amount (PIA).
For example: If Spouse A has an income history that gives him a benefit of $1,500 at full retirement age and their partner qualifies for the benefit, he/she could receive up to $750 per month. The exact amount will depend on the age at which Spouse B claims his or her benefit.
How the Age You Claim Affects Your Monthly Benefit
Full retirement age is one of the most important factors regarding Social Security (and retirement in general) because that is when you are eligible to receive your benefit. That is, it is not that you need to claim benefits until you reach your full retirement age; You can claim them before you reach full age, although it reduces your monthly benefit or delaying the application can increase your monthly benefit.
For Spouse A, who is claiming the benefit based on work history, benefits are reduced by 5/9 of 1% each month before full retirement age, up to 36 months. Each additional month further reduces benefits by 5/12 of 1%. For example, a person with full retirement age, which is 67 years old, and applies for benefits at age 64, will have a reduction of 20%. If they claim at 62, the reduction will be 30%.
The reduction differs for people filing for spousal benefits. Benefits for them are reduced by 25/36 of 1% each month before their full retirement age, up to 36 months, and then reduced by 5/12 of 1% each additional month thereafter. If your full retirement age is 67, and you apply at 64, benefits will decrease by 25%. If they claim at 62, the reduction will be 35%.
Even so, monthly Social Security benefits increase for Spouse A if he or she applies after full retirement age, this does not apply to spousal benefits.
What Happens to Benefits if the Spouse Dies?
Although they are separate Social Security benefits, spousal and survivor benefits are closely related. If a person receives spousal benefits when their partner dies, their spousal benefits are automatically converted to survivor benefits.
When spousal benefits are converted, the beneficiary is eligible to receive up to 100% of his or her deceased spouse’s benefit, including any benefit increase the beneficiary may have received by claiming benefits after full retirement age.
Regarding the benefit for survivor, they can start at age 60 or at age 50 for people with disabilities. However, just as the benefits for spouses Regularly, survivor benefits will be reduced if you apply before full retirement age. For example, if a widow or widower begins receiving survivor benefits at age 60, she or he will receive about 71.5% of the deceased spouse’s benefits after reduction.
