The Social Security system in the United States isn’t just about retirement income—it offers financial security to spouses who may not have worked or earned much during their lives. This support ensures that lesser-earning or non-working spouses don’t face financial hardships when their partner retires. However, recent changes to this rule are worth noting, as they might impact how benefits are calculated for some people. Here’s a simple breakdown of the spousal benefit, what’s changed, and how you can plan to maximize your future Social Security benefits.
What Is the Social Security Spousal Benefit?
The spousal benefit is designed to support spouses who haven’t worked enough to earn their own Social Security benefits. A spouse can receive up to 50% of the retirement benefit their partner gets.
For instance, if your partner earns $2,000 a month in Social Security, you could receive up to $1,000, even if you’ve never worked. This can significantly increase household income in retirement.
Previously, spouses had the flexibility to claim benefits early and switch to their own higher benefits later. For example, a spouse could claim spousal benefits at age 62 and then switch to their own higher benefit at age 70. This strategy allowed couples to maximize their combined benefits.
However, this option was eliminated in 2024 for most people. Now, you’ll only receive the higher of either your spousal benefit or your own work-based benefit.
Who Can Qualify for Spousal Benefits?
To be eligible for spousal benefits, you must meet the following criteria:
- Be at least 62 years old.
- Have a spouse who has already filed for Social Security benefits.
- Alternatively, you can qualify if you are caring for a child under 16 or a child with disabilities.
If you’re divorced, you can still qualify for spousal benefits if you were married to your ex-spouse for at least 10 years.
Key Changes to the Spousal Rule
For those born on or after January 2, 1954, the ability to switch between benefits is no longer allowed. Instead, you’ll only get the higher amount of either your own benefit or your spousal benefit, depending on when you file.
For those born before this date, the old rules still apply. This means they can start with spousal benefits and switch to their own benefits later to maximize payouts.
How To Maximize Your Benefits
Here are some tips to make the most of your Social Security benefits as a spouse:
- Maximize Your Earnings:
If possible, increase your earnings during your working years. If your own benefit exceeds 50% of your spouse’s, you’ll receive more in the long run. - Delay Filing:
If you can, wait until your full retirement age (67 for those born after 1960) to claim benefits. Filing at age 62 reduces your benefit by about 30%. However, there’s no need to wait beyond 67, as benefits won’t increase further after this age. - Understand Special Cases:
If you were born before January 2, 1954, you can still use the old claiming strategy to maximize benefits by switching from spousal to personal benefits later.
Why Does This Change Matter?
For most people, the new rules won’t make a big difference. If you don’t have your own Social Security benefit, the spousal benefit will always be higher. But for those who relied on switching strategies, it may require rethinking their financial plans.
Planning ahead and understanding your options can help you secure the best possible outcome for your retirement.
