Social Security Spousal & Ex-Spousal Benefits

For individuals nearing retirement, the social security system can seem complex, especially when it comes to understanding the rules regarding spousal benefit eligibility. This article will detail how individuals qualify for spousal benefits and explain when to take them versus individual benefits.

If you have not read What to Look For on Your Social Security Benefit Statement, you may want to start there as it provides an overview of how Social Security retirement benefits are calculated.

Spousal Benefits

What is a spousal or ex-spousal benefit?

The spousal benefit was created to provide retirement income to the spouse who was not employed or the spouse who had substantially less earnings throughout their lifetime. Individuals can qualify for spousal or ex-spousal benefits even if they have never paid into the social security system.

How do individuals qualify for spousal or ex-spousal benefits?

An individual qualifies for spousal benefits if they meet all the following requirements:

1. They are 62 or older

2. They are currently married and have been for a minimum of 12 months

3. Their spouse has already filed for their Social Security retirement benefits

An individual qualifies for ex-spousal benefits if they meet all the following requirements:

1. They are 62 or older

2. They are not currently married but were previously married for more than ten years.

3. Their ex-spouse is 62 or older (notice that for ex-spousal benefits, it does not matter whether their ex-spouse has filed)

How is my spousal or ex-spousal benefit calculated?

Your spousal or ex-spousal benefit is half your spouse’s full retirement age benefit. If you file for benefits before your full retirement age, the spousal or ex-spousal benefit is permanently reduced.

Let’s look at an example of how spousal benefits work:

Tom and Mary are married. Tom is 66, and Mary is 63. They both qualify for social security retirement benefits based on their earnings. Tom’s monthly benefit at 66 is $2500, and Mary’s monthly benefit at 66 is $1200.

If they both filed for their benefits at age 66, it appears that they would be collecting $3700 per month based on the illustration.  However, because Tom has already filed for his benefits by the time Mary files at 66, she will be eligible for a spousal benefit of $1250 equal to half of Tom’s benefit in lieu of her own $1200 benefit.  So here is what that looks like:

What if Tom has not filed yet when Mary files for benefits?

If we made a slight change to the previous scenario and had Tom wait until age 70 to file, then Mary would only receive her full retirement age benefit of $1200 per month until Tom files. Once Tom files, she will receive the additional $50 spousal benefit at that time.

How will Mary’s spousal benefit be affected if Tom files for benefits before his full retirement age?

Another scenario that could occur is that Tom files early for his benefits. Let’s assume he files for his benefits at age 62 instead of waiting until full retirement age.  In this case, his benefit would be permanently reduced from $2500 to $1875 monthly. Although it is a little counterintuitive, it will not affect Mary’s spousal benefit if she waits to file until she reaches full retirement age. Assuming she waits until she is 66, she will still receive $1250 monthly as a spousal benefit even though Tom’s has been reduced due to him filing early.

What if I file for spousal or ex-spousal benefits prior to full retirement age?

When individuals file for Social Security retirement benefits before their full retirement age, Social Security reduces both their and spousal benefits. In our example, if Mary files at age 63, then Mary’s benefit will be reduced from $1200 to $960 monthly. Her spousal benefit will be reduced from $1250 to $1010 monthly. Since the spousal benefit is higher, she will receive $1010 monthly for the remainder of her life.

Is there a limit to how much I can earn when collecting spousal benefits before full retirement age?

An individual earning more than the limit specified by Social Security may be subject to an additional benefit reduction. For more information on earnings limits, visit https://www.ssa.gov/planners/retire/whileworking.html