What Happens If You File For Your Own Benefits Before Youre Eligible For A Spousal Payment
What happens if someone files for their own benefit, but is not yet eligible to receive the spousal payment? The answer, and the next calculation Im going to show you, has confused a lot of people.
This actually happens fairly often, due to the rule that says before a spousal payment can be paid, the higher-earning spouse must file first. We can figure out how this works by using the chart from above and continuing our example of a higher- and lower-earning spouse in a marriage where each is entitled to their own benefit but the lower-earning spouse may also get a spousal payment.
Lets assume that the lower-earning spouse has reached full retirement age and they file for their benefit of $800. If the higher-earning spouse has already filed, theyll get the spousal payment of $200, but if they havent already filed, they will not get the spousal payment. That would keep their total payment to $800.
This goes for any age at which the lower-earning spouse files as long as the higher-earning spouse has not yet filed. The lower-earning spouse cant get the spousal payment in this scenario, so their total payment would only be their own benefit, reduced or increased for filing age.
Now, lets step this up to a more likely scenario where the lower-earning spouse files for benefits and two years later, the higher-earning spouse files for benefits. When the higher-earning spouse files, it entitles the lower-earning spouse to the spousal payment.
But how would this be calculated?
When And How To Apply
The key to getting the maximum Social Security benefit is in knowing your specific benefits as individuals and in timing when you file as a couple.
You can first apply for Social Security if you are no more than three months away from age 62. But your benefits increase significantly if you wait until you reach full retirement age, which can be 66 or 67, depending on your year of birth.
To apply for spousal benefits, go to the Social Security Administration website. There you will find links to apply online and numbers to call to apply over the phone or to make an appointment at your local Social Security office.
The website also has lots of information about how to maximize the amount you can collecting. SSA also offers an online calculator to estimate your potential spousal benefit.
David Levine is an award-winning writer and editor whose work has been featured in the New York Times, New York Daily News, Sports Illustrated, American Heritage, U.S. News & World Report and others.
David has covered health, health insurance and health policy topics among many others since 2017. He earned a Bachelor’s Degree in English from the University of Rochester and currently lives in Albany, New York.
Social Security Spousal Benefits Explained
- Social Security spousal benefits can pay an eligible spouse 50% of the partners benefit if it is higher than his or her own benefit. Claims can begin at age 62 but may be worth more at full retirement age. Read our Social Security review to learn more.
Social security is complicated for individual filers, and being married can make it even more complicated. Thats because Social Security includes benefits for the spouse as well as the individual.
When an individual files for retirement benefits, that persons spouse may be eligible for a benefit based on the worker’s earnings according to the Social Security Administration.
In this Social Security review, we outline the rules for spousal benefits.
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When Will You Collect
The SSA calculates your benefit amount at your full retirement age . This depends on the year you were born. FRA by birth year is:
- 19431954: age 66
- 1955: age 66 and two months
- 1956: age 66 and four months
- 1957: age 66 and six months
- 1958: age 66 and eight months
- 1959: age 66 and 10 months
- 1960 and later: age 67
The monthly amount you are eligible to receive at your FRA is considered your full benefit, but it is not your minimum or maximum benefit.
You have the option to file for early retirement as early as age 62. But, you may choose to delay taking your benefits until as late as age 70.
There are many reasons why you might choose to take early retirement or to delay it. That choice has a direct impact on the amount of your monthly payment. If you opt for early retirement, you are choosing a lower monthly payment for the rest of your life. By choosing to delay your benefit to any age between your FRA and age 70, you lock in an increase.
What If I Delay Taking My Benefits
If you retire sometime between your full retirement age and age 70, you typically earn a “delayed retirement” credit for your own benefits . For example, say you were born in 1960, and your full retirement age is 67. If you start your benefits at age 69, you would receive a credit of 8% per year multiplied by two . This means your benefit would be 16% higher than the amount you would have received at age 67.
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What Is The Future Of Social Security
As of June 2022, the Social Security Trust Fund is projected to have enough resources to cover all promised benefits until 2035 when, absent a change from Congress, benefits would need to be cut for all current and future beneficiaries to about 80% of scheduled benefits.2 Over the longer term, changes to the full retirement age or means testingâwhich could reduce or eliminate benefits based on your other income sourcesâmay also be considered.
If you’re skeptical about the future of Social Security or wary of potential changes, you may be tempted to start benefits early, assuming that it’s better to have something than nothing. Regardless of your situation, if you are concerned about the future prospects for Social Security, then that’s a good reason to save moreâand earlierâfor your retirement.
Claim At Full Retirement Age
If you start collecting Social Security retirement benefits at your full retirement age , you’ll receive 100% of your primary insurance amount . But remember that you can collect more than 100% of your PIA by waiting beyond your FRA.
You’ll earn an extra 0.67% each month that you delay your Social Security benefits past your FRA. That’s an extra 8% for each year that you wait past FRA and what other investment can guarantee an 8% annual increase?*
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Strategy For Late Claimers
If one partner has little or no earnings history, the best strategy is for the wage earner to postpone applying for Social Security retirement benefits until age 70 to get the highest amount possible. Full retirement age is 66 for most baby boomers and 67 for everyone born in 1960 or later, but by delaying claiming benefits until age 70, the wage-earner will accrue delayed retirement credits that will increase the monthly payments by 8% for each year of delay.
Keep in mind that this won’t affect the spousal benefit amount. Spousal benefits differ from personal benefits when it comes to delaying payments. If you delay claiming for personal retirement benefits past full retirement age, the benefit increases over time, as explained above. However, that will have no impact on your spouse’s benefits, since they max out at full retirement age . In other words, there is no benefit for your spouse in delaying the spousal benefit claim past your full retirement age.
On the other hand, if both partners work, and their earnings are more or less equal, their individual Social Security benefits will each be greater than the spousal benefit, so the best strategy for both is to postpone applying for benefits until age 70.
How Does The Calculator Estimate My Retirement Benefits Payment
Our simplified estimate is based on two main data points: your age and average earnings. Your retirement benefit is based on how much youve earned over your lifetime at jobs for which you paid Social Security taxes. Your monthly retirement benefit is based on your highest 35 years of salary history. You can get your earnings history from the Social Security Administration .
Your Social Security benefit also depends on how old you are when you take it. You can start collecting at age 62, the minimum retirement age, but youll get a bigger monthly payment if you wait until full retirement age, which is 66 but is gradually moving to 67 for people born in 1960 or after. If you can wait until 70 to start collecting, youll receive your maximum monthly benefit.
A single person born in 1960 who has averaged a $50,000 salary, for example, would get $1,349 a month by retiring at 62 the earliest to start collecting. The same person would get $1,927 by waiting until age 67, full retirement age. And he or she would get $2,389, the maximum benefit on those earnings, by waiting until age 70. Payments dont increase if you wait to collect past 70.
Other factors affecting the size of your benefit include whether youve worked for state or local government for more than 10 years your Social Security payment may be decreased if you paid into the civil service retirement program, for example.
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Social Security Benefit Calculator
Social Security benefits can be an important factor to consider in your future retirement income. Use this calculator to estimate what your retirement benefit amount could be.
An Ameriprise advisor can look at your overall financial picture and provide personalized advice to help you meet your retirement income goals.
Collecting Social Security Spousal Benefits
Spousal benefits are Social Security benefits that are based on your spouses work record instead of your own. In some circumstances, youre eligible for spousal benefits even if youve divorced.
Your Social Security retirement benefit is typically based on your 35 highest-earning years of work. But, if your spouse earned significantly more or your work history is limited, you may get more money from spousal benefits. Read on to learn when you qualify for spousal benefits and how Social Security calculates your payments.
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More Than Just Income: The Social Security Spousal Benefit And Medicare Coverage
If you are eligible for a Social Security spousal benefit, you are also entitled to premium free part A Medicare at age 65. The catch?
Youre entitled to Medicare only if your spouse is at least 62 years old.
If you are more than 3 years older than your spouse, you may have to buy Medicare Part A until your spouse turns 62. Thats when your premium-free benefit would start. The Part A monthly premium is $422 in 2018.
Bonus: How Reductions Are Calculated On A Monthly Basis
One last thing I think is important for those who really want to grasp the fine details of this calculation is understanding how the reductions are calculated on a monthly basis since you may want to file in between birthdays.
There are three separate bands that you have to know about:
For the band of more than 36 months away from FRA, the spousal payment and your own benefits are reduced the same. 5/12 of 1% per month.
Within the band of 1-36 months before FRA, spousal benefits are reduced by 25/36 of 1% percent and your own benefits are reduced by 5/9 of 1%.
After full retirement age spousal benefits are not increased at all but your own benefits are increased by 2/3 of one percent.
I know weve covered A LOT of ground in this article but I hope its helpful when you are planning how to file for social security.
Before you leave be sure to join my members group. Its currently at 9,000+ members and has some really smart people who love to answer any questions you may have about Social Security. From time to time Ill even drop in to add my thoughts, too. You should also consider joining the 273,000+ subscribers on my YouTube channel!
My video on Spousal Benefits
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To Wait Or Not To Wait
Consider taking benefits earlier if . . .
- You are no longer working and can’t make ends meet without your benefits.
- You are in poor health and don’t expect the surviving member of the household to make it to average life expectancy.
- You are the lower-earning spouse, and your higher-earning spouse can wait to file for a higher benefit.
Consider waiting to take benefits if . . .
- You are still working and make enough to impact the taxability of your benefits.
- Either you or your spouse are in good health and expect to exceed average life expectancy.
- You are the higher-earning spouse and want to be sure your surviving spouse receives the highest possible benefit.
Social Security Survivor Benefits
When your spouse dies, you may be eligible for survivor benefits. You may also be eligible for your ex-spouses survivor benefits if you were married for at least 10 years or you care for their child whos younger than 16 or disabled.
Survivor benefits are as much as 100% of the benefit the deceased worker was receiving when they died. If the person died before claiming benefits, the survivor benefit is based on their primary insurance amount.
To qualify for the full benefit, you still have to wait until your full retirement age. However, you can claim benefits as early as age 60 . If you claimed survivor benefits as soon as youre eligible at age 60, youd only receive 71.5% of your late spouses benefit. Surviving spouses or ex-spouses who are caring for a child younger than 16 or who has a disability can receive 75% of the deceased workers benefit.
If you remarry before age 60 , you wont qualify for survivor benefits. However, if you remarry after age 60 , remarrying wont jeopardize your survivor benefits.
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Can I Collect Half Of My Spouse’s Social Security At 62
Not quite. The percentage of your spouse’s Social Security that you receive starts at 32.5% at age 62 and steps up gradually to 50% at your full retirement age, 66 or 67, depending on your year of birth. The amount is based on your spouse’s benefit at full retirement age.
The important point is this: Don’t bother delaying past your full retirement age. The amount you receive won’t grow beyond that age.
Compare Two Application Ages
Use the following calculation to compare the financial difference between two Social Security retirement benefit application ages. The U.S. Social Security website provides estimated benefit payment amounts of different claim ages.
The term “Social Security” is used in the U.S. to refer to the system that provides monetary assistance to people with inadequate or no income. The term can be better understood by thinking of it as the “financial security of society.” Although they may not go by the same name, there are many similar government systems in place throughout the world. This calculator is specifically intended for U.S. Social Security purposes.
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Complicating Factors: Spousal Benefit Reductions
An assortment of other factors can come into play, which could reduce your benefit as a spouse. For example:
- If you are receiving a retirement benefit of your own, your spousal benefit will be reduced.
- If you file for spousal benefits prior to your full retirement age, your spousal benefit will be reduced.
- If you are receiving a government pension from work that wasnt covered by Social Security taxes, your spousal benefit will be reduced by the government pension offset.
- If your spouse is disabled or if you have a minor child or adult disabled child, the family maximum rules may result in your spousal benefit being reduced.
- If you are collecting a spousal benefit while under full retirement age and you are working, the earnings test may result in some or all of your spousal benefit being withheld.
We will discuss the GPO, family maximum rules, and earnings test in other articles. For now, we will discuss only the first two potential sources of reduction: entitlement to your own retirement benefit and filing prior to full retirement age.
Strategy For Divorced Spouses
If you have been divorced for at least two years, you can apply for spousal benefits if your marriage lasted 10 or more years. If, on the other hand, you are still married and considering a divorce, and are near retirement age, try to apply for spousal benefits before your divorce is final. If you have been married and divorced multiple times, you can choose to receive whichever spousal benefit is highest. Saving your ex-spouses Social Security numbers and dates of birth will make the enrollment process easier.
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The Two Exceptions To Know Around The 1 Year Marriage Requirement
Normally, you must be married for at least 12 continuous months to meet the spousal benefit duration-of-marriage requirement. However, there are two exceptions to this rule.
Exception 1
If you marry someone who is the natural mother or father of your child, the one year requirement is waived.
Be the natural mother or father of the workers biological son or daughter i.e., this requirement is met if a live child was born to the number-holder and claimant although the child need not be alive.
Exception 2
The 1-year requirement is also waived if you were entitled to Social Security benefits on someone elses work record in the month before you were married.
An example of these benefits would be spousal benefits, survivor benefits or parents benefits.
For example, lets assume you will be eligible for a spousal benefit from your ex-husband Joe. If you remarry, you wouldnt have to wait the full 12 months to get a spousal benefit from your new spouse. Instead, youd be immediately eligible.
This topic is closely related to the Social Security Survivor Benefit. Ive written an in-depth but easy-to-understand article titled Social Security Survivor Benefits: The Complete Guide to Who Gets What and How to Calculate It if you want to learn more.