The spouse’s benefit is worth up to 50% of the higher-earning spouse’s benefit at full retirement age.
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When submitting a file for Social securityyour spouse becomes eligible for payments known as spousal benefits. However, they will not receive these payments automatically. Instead, they must file with the Social Security Administration, whether or not they receive their retirement benefits.
A financial advisor can help you plan for Social Security and build a comprehensive retirement income plan. Contact a credit counselor.
For example, imagine that a man receives $3,000 at his house Full retirement age. His wife can collect up to $1,500 in spousal benefits based on his earnings history, but she must file for them. Here’s a closer look at how spousal benefits work.
Marital benefits It is a form of Social Security payment to spouses of beneficiaries. If you are married or previously married, you can claim benefits worth up to 50% of your spouse’s full retirement benefits. For most people, this means the benefits they will receive at age 67. These payments are not deducted from your spouse’s payments, and your spouse cannot change your right to receive them.
To claim spousal benefits, the Social Security Administration (SSA) requires the following:
If both of these criteria are met, the secondary spouse can apply for spousal benefits. However, there are two exceptions to these rules:
If spouses have been divorced for more than two years, the secondary spouse can claim spousal benefits regardless of the primary spouse’s retirement status
If the secondary spouse is caring for a child under 16 or receiving disability benefits through the SSA. They can apply for spousal benefits before age 62
You can also apply for retirement benefits based on your ex-spouse’s benefits if you are Married for at least 10 years She did not marry again. This is not affected by the marital status of the primary spouse, and in some cases, you can claim benefits before the primary spouse retires.
Whether it’s guidance on spousal benefits or advice on how and when to make withdrawals from retirement accounts, a Financial advisor It can help you plan for retirement.
A woman follows up on her husband’s applications for spousal benefits from the Social Security Administration.
The maximum spousal benefit is capped at 50% of the higher-earning spouse’s “Primary Insurance Amount” (PIA) — his or her benefit at full retirement age. For example, if you receive $3,000 a month from Social Security, your spouse could get up to $1,500 a month in spousal benefits if you wait until full retirement age.
While husbands are eligible to claim spousal benefits as early as age 62, doing so will reduce their lifetime benefits by a certain percentage for each month before age 67. Claiming a spousal benefit at age 62 can result in a benefit equal to only 32.5% of the total spousal benefit. The basic insurance amount for the spouse with the higher income. That means, if you claim spousal benefits at age 62, you will receive $32.50 for every $100 of PIA for the primary spouse.
Unfortunately, delaying spousal benefits beyond full retirement age does not have the opposite effect. Spousal benefits are not increased if you claim them after age 67.
The SSA automatically runs this calculation when you apply for benefits. If you are entitled to your own retirement benefits, in addition to a spousal benefit, the Social Security Administration (SSA) will issue the larger payment. If you have already started receiving benefits based on your earnings history, you can convert payments to spousal benefits once your spouse retires. This is usually done if your spousal benefits will exceed your retirement benefits.
If you need help calculating your Social Security benefits and deciding when to claim them, talk to A Financial advisor.
Once eligible for spousal Social Security benefits, the recipient must apply for these benefits, regardless of whether they have begun receiving their own retirement benefits.
To understand how this works, let’s look at our hypothetical situation from above. Imagine you expect to collect $3,000 a month from Social Security at full retirement age.
In all cases, your spouse’s spousal benefits will depend on the basic insurance amount of $3,000, as well as her age. For example, if you retire at age 67, here’s how much your spousal benefit will be based on the age you choose to claim it:
62: $975 per month ($3,000 * $0.325)
67: $1,500 per month ($3,000 * $0.5)
70: $1,500 per month ($3,000 * $0.5)
As you can see, claiming spousal benefits at age 62 would leave her with only $975 per month, which is 32.5% of your primary insurance amount. Once she reaches full retirement age, she is eligible for her maximum spousal benefit of $1,500 per month. Before applying for Social Security Consider speaking with a financial planner To discuss how your benefits will affect your retirement income plan.
But what if your spouse also has her own retirement benefits? How will your spouse’s benefits affect the amount you ultimately collect?
For example, let’s say your spouse qualifies for $1,200 in retirement benefits based on her earnings history. Since her retirement benefit is less than her spousal benefit, the Social Security Administration will pay the latter. If she qualifies for the $1,600 based on her work history, the Social Security Administration will simply pay that amount.
Spouse benefits are Social Security payments made based on the earnings history of the higher-earning spouse. A husband can receive up to 50% of his wife’s Social Security benefits at full retirement age, but these payments are not issued automatically. Like all benefits, you must apply to the Social Security Administration (SSA) to get them.
Social Security plays a pivotal role in many Americans’ retirement plans. In fact, two people collecting the maximum benefit in 2024 could have a household income of about $117,000. With that in mind, here Some strategies for maximizing Social Security For you and your husband.
A financial advisor can help you develop a Social Security strategy and build a comprehensive retirement plan. Find a financial advisor It doesn’t have to be difficult. Free SmartAsset tool Matches you with up to three vetted financial advisors serving your area, and you can make a free introductory call with your matched advisors to determine which advisor you feel is right for you. If you are ready to Find a mentor Who can help you achieve your financial goals, start now.
Keep an emergency fund on hand in case you encounter unexpected expenses. An emergency fund should be liquid – in an account that is not at risk of significant fluctuations such as the stock market. The trade-off is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.
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