For married couples, divorced individuals, and widows or widowers, spousal and survivor benefits can play a significant role in retirement income planning. Understanding how these benefits work is one piece of the puzzle when planning retirement income for you and your family.
Spousal Benefits
If you’re married, you may be entitled to claim Social Security benefits based on your spouse’s Primary Insurance Amount (PIA), even if you never worked or earned much less. The PIA is the benefit your spouse is entitled to at their Full Retirement Age (FRA), based on their lifetime earnings record. (Social Security Administration.)
- Eligibility: To qualify, your spouse must already be receiving benefits, and you must be at least age 62.
- Benefit Amount: The maximum spousal benefit is 50% of your spouse’s full retirement age benefit, not their reduced or delayed amount.
- Timing: If you claim before your own full retirement age, your spousal benefit will be reduced permanently.
Hypothetical Example: If a worker’s PIA is $2,000, the maximum spousal benefit would be capped at $1,000. If the spouse filed earlier than their FRA, they would receive less than $1,000.
Survivor Benefits
If your spouse passes away, you may be eligible for survivor benefits that replace your own benefit if it is lower.
- Benefit Amount: You can receive up to 100% of your late spouse’s benefit, depending on your age when you file.
- Early Filing: Survivor benefits can begin as early as age 60 (or age 50 if disabled), but filing early will reduce the amount.
- Remarriage: If you remarry after age 60, you may still qualify for survivor benefits.
Hypothetical Example: If your benefit is $1,200 but your late spouse was receiving $2,000, you could step up to the higher amount as a survivor.
Divorced Spouses
If you’re divorced, you may still qualify for spousal or survivor benefits if:
- The marriage lasted at least 10 years.
- You are currently unmarried.
- Your ex-spouse is eligible for Social Security.
Your claim does not reduce or impact your ex-spouse’s benefits or those of their current family.
Strategies to Consider
Coordinating spousal and survivor benefits with your own work record requires careful planning. Some strategies include:
- Delaying Benefits: Waiting until full retirement age or even age 70 may increase your benefit for life.
- Switching Benefits: In some cases, you may start with a spousal or survivor benefit and later switch to your own higher benefit.
- Coordinating as a Couple: The timing of when each spouse files can significantly affect household income over time.
Why Planning Matters
The rules around Social Security are complex, and mistakes can cost thousands of dollars over the course of retirement. A thoughtful strategy that considers both spousal and survivor benefits can help you:
- Increase lifetime retirement income
- Help the surviving spouse live a comfortable retirement
- Reduce the risk of leaving money on the table
Spousal and survivor benefits are often overlooked, yet they can make a major difference in your retirement plan. Understanding your options and how they fit into your broader financial picture can help ensure you get the most from Social Security.
At Gregory Ricks & Associates, we help families navigate these decisions with clarity and confidence. If you’d like to learn more, schedule a free, no-obligation 15-minute consultation call today.
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This article is meant to be general and is not investment or financial advice or a recommendation of any kind. Please consult your financial advisor before making financial decisions. For more detailed information, contact a financial advisor with Gregory Ricks & Associates, Inc. Investment advisory products and services through AE Wealth Management, LLC. (AEWM) Insurance products are offered through the insurance business Gregory Ricks & Associates, Inc. AEWM does not offer insurance products. The insurance products offered by Gregory Ricks & Associates, Inc. are not subject to Investment Adviser requirements. Firm does not offer tax or legal advice. 3294161 – 9/25