ELIGIBLE Americans can get their hands on payments worth up to $2,009 each month thanks to Social Security’s program for married and divorced couples.
Read on to find out three key things to know about spousal benefits as you plan ahead for retirement.
Americans can receive up to $2,009 monthly from the SSA in spousal benefits[/caption]
Social Security is a social program that hands out retirement, disability, survivor, and spousal benefits to tens of millions of American workers and their families.
These benefits provide a monthly payment to one spouse based on their partner’s work record, providing financial support to individuals who may have earned less or not worked at all.
The amount you receive in spousal benefits can vary based on a number of factors, so as you begin planning for your retirement, be sure to keep a few things in mind.
1. What are spousal benefits based on?
Social Security spousal benefits are mainly based on the working spouse’s primary insurance amount, or PIA, which is the amount they would receive at their full retirement age.
The lower-earning spouse can receive up to 50% of the higher earner’s FRA benefit.
Those who choose to retire at their full retirement age, or FRA, in 2025 can receive a maximum benefit of $4,018, meaning the spousal benefit this year is capped at $2,009.
The exact amount you receive is based on two factors.
First, the higher earner must already be collecting their Social Security retirement benefit, with the spousal benefit always based on the worker’s FRA benefit.
Beneficiaries must also claim the spousal benefit at their own full retirement age, with the payments being permanently reduced if they claim before.
When Americans apply for Social Security benefits and are eligible for both their own retirement benefit and a spousal benefit, the SSA automatically deems them to have applied for both under its deemed filing rule.
The agency then pays the larger of the two amounts.
2. Why can’t spousal benefits be boosted?
To qualify for Social Security retirement benefit, Americans generally need to accrue 40 work credits, or roughly 10 years of work in covered employment.
Those who do not have enough credits cannot get retirement benefits on their own record, but may qualify for a spousal benefit instead if they are married to someone who does have enough credits.
While the worker’s own benefit can grow if they delay claiming thanks to delayed retirement credits – monthly increases to Social Security benefits for each month a worker postpones claiming beyond their FRA – these credits do not apply to spousal benefits.
HOW TO SUPPLEMENT YOUR SOCIAL SECURITY
Here’s how to supplement your Social Security:
Given the uncertainty surrounding Social Security’s long-term future, it’s essential for workers to consider ways to supplement their retirement income.
Senior Citizens League executive director, Shannon Benton recommends starting early with savings and investing in retirement accounts like 401(k)s or IRAs.
- 401(k) Plans
- A 401(k) is a retirement account offered through employers, where contributions are tax-deferred.
- Many employers also match employee contributions, typically between 2% and 4% of salary, making it a valuable tool for building retirement savings.
- Maxing out your 401(k) contributions, especially if your employer offers a match, should be a priority.
- IRAs
- An Individual Retirement Account (IRA) offers another avenue for retirement savings.
- Unlike a 401(k), an IRA isn’t tied to your employer, giving you more flexibility in your investment choices.
- Contributions to traditional IRAs are tax-deductible, and the funds grow tax-free until they are withdrawn, at which point they are taxed as income.
Many Americans mistakenly delay filing for Social Security even if they are only collecting a spousal benefit.
While waiting to claim Social Security can boost the worker’s benefits, spousal benefits cannot grow.
3. Who can claim spousal benefits?
Americans can claim spousal benefits from Social Security if they are married or divorced, depending on if their husband or wife was eligible.
Claimants must have been married for at least one year and be at least age 62, unless they are caring for a child under 16 or disabled who is eligible for benefits under their spouse’s record.
Divorcees can also claim spousal benefits if the marriage lasted 10 years or more and they have not remarried before age 60.
They must also have been divorced from their spouse for at least two consecutive years if the ex-spouse has not yet filed for benefits.
Additionally, the benefit they would receive from their work record must be less than the spousal benefit.
As Americans get their hands on their spousal benefits, millions are being hit with a new Social Security age rule.
Meanwhile, Social Security officials have clarified changes to the paper checks policy ahead of the September 30 deadline.
Story idea?
If you have an exclusive idea or story tip for The U.S. Sun, feel free to reach out to me at maya.lanzone@the-sun.com!
