Social Security spousal benefits offer financial support for individuals who did not work enough to qualify for their own retirement benefits. These benefits are available to spouses of eligible workers.
For married individuals, spousal benefits cannot be claimed until the working spouse files for Social Security. Divorced individuals may claim benefits based on an ex-spouse's record without waiting for the ex-spouse to file.
The earliest age to claim spousal benefits is 62. Claiming before full retirement age, which is 67 for those born in 1960 or later, results in reduced monthly payments. There is no financial advantage to delaying spousal benefits past full retirement age, as these benefits do not increase with delayed filing.
Spousal benefits are capped at 50% of the working spouse's benefit at full retirement age. If the working spouse is eligible for $2,000 monthly, the maximum spousal benefit is $1,000.
Individuals cannot receive both their own Social Security benefits and spousal benefits simultaneously. The Social Security Administration pays the higher of the two amounts. For example, someone eligible for $1,200 based on personal earnings or $1,000 in spousal benefits would receive $1,200 monthly.
Spousal benefits can represent a significant income source in retirement. Understanding these rules helps in financial planning for later years.