Crucial Points about Spousal Benefits from Social Security that Every Married Pair Should Understand
Navigating the maze of Social Security benefits can be a headache, especially for married couples. Here's the lowdown on spousal benefits, the hidden gem that can help bolster your retirement income. But remember, understanding the ins and outs is crucial to make the most of this benefit.
First thing's first: before you can claim spousal benefits, your spouse has to cash in on their retirement benefits. Yeah, no matter how old you are, you've gotta wait until they start getting their Social Security checks. Even if they're still hustling and you're ready to kick back and relax with those checks, you can't receive a dime until your spouse starts cashing in.
Now, here's the deal with the amount you'll be receiving: spousal benefits can be half of your spouse's benefits, but only the standard amount they would get at full retirement age (typically 66 or 67, depending on birth year). Let's say your spouse's standard benefit is $2,000, the most you'd receive would be $1,000. If your spouse decides to delay their benefits to increase their monthly income, their checks will be bigger, but your max spousal benefit won't follow suit – it'll still be $1,000.
Last but not least, keep in mind that you can't increase your spousal benefits once you hit a certain point. Unlike retirement benefits based on your own earnings, spousal benefits don't gain delayed retirement credits. So, there's no advantage to waiting past your full retirement age to start claiming – if you can, throw in the towel and claim then for the extra cash.
By the book, armed with this info, you and your partner can make smart choices about when to claim spousal benefits, ultimately setting yourselves up for a more financially secure retirement.
- To receive spousal Social Security benefits, it's essential to understand that your spouse must first be receiving their retirement benefits.
- The amount of spousal benefits you can receive is typically half of your spouse's benefits, but it's important to note that it's based on their standard amount at their full retirement age, which is usually 66 or 67, depending on birth year.
- Unlike retirement benefits based on your own earnings, spousal benefits do not gain delayed retirement credits, meaning there's no advantage to waiting past your full retirement age to start claiming them.
