Key points
- Marriage can have a significant impact on Social Security benefits.
- Spousal benefits provide a portion of the higher-earning spouse’s Social Security payouts to the lower-earning spouse.
- To apply for spousal benefits, you must meet certain age and eligibility requirements.
Marriage is often referred to as a union of two souls, but it is much more than that. It is a bond that connects two individuals, their families and their finances. When it comes to retirement planning, marriage can have a significant impact on Social Security benefits.
If you’re married or planning to get married, understanding Social Security spousal benefits can help you maximize your retirement income. We’ll explore the intricacies of Social Security spousal benefits and how they can make a difference in your retirement planning.
What is Social Security?
Social Security is one of the main social insurance programs in the United States. When workers die, retire or can no longer work because of disabilities, Social Security replaces a portion of their earnings.
It’s also enormous. In 2023, nearly 67 million Americans per month will receive Social Security benefits, totaling more than $1 trillion in benefits paid during the year.
The federal government finances the program through taxes. Workers and employers pay in the form of payroll deductions, which are mandatory. The Social Security tax rate is 6.2% for employers and 6.2% for employees, so 12.4% in total.
There is a maximum wage subject to Social Security taxes, meaning you don’t have to pay Social Security taxes on your income above a certain limit. It is known as the wage base limit, and it changes every year. For 2023, the wage base limit is $160,200.
But that’s not the only payroll tax you’ll need to keep in mind. There’s also a Medicare tax, whose rate is 1.45% for employers and 1.45% for employees. That means the combined payroll tax rate is 15.3% in 2023.
If you are self-employed, you can expect to pay the total 15.3% tax yourself, as you are effectively both the employer and the employee.
As a spouse, you can collect part of your partner’s Social Security
You can collect part of your spouse’s Social Security even if you have not worked or do not have enough credits to qualify for your own Social Security benefits.
To qualify for spousal benefits, you must be one of the following:
- At least 62 years old.
- Caring for a child under age 16 or a child who became disabled before age 22, eligible for benefits.
“Where many people get confused with spousal benefits is when the lower-earning spouse is ‘dually entitled,’ which means they are entitled to their own benefit plus a spousal payment to get them up to one-half of the higher-earning spouse’s full retirement age benefit amount,” says Devin Carroll, owner and lead advisor at Carroll Advisory Group. “What’s critical to understand with dual entitlement is that these are really two separate benefits rolled into one.”
Carroll adds that a simple formula can help you understand how this concept may apply to your situation:
(Half of higher earner’s full retirement age benefit) – (Lower earner’s full retirement age benefit) = Additional spousal payment.
Example: Joe and Susan have both hit the full retirement age of 67. Joe’s Social Security payment is $4,000, and Susan’s is $1,000. Susan can file for spousal benefits, making her eligible to receive 50% of Joe’s Social Security payout. This results in Susan receiving $2,000 in Social Security benefits per month instead of the $1,000 she would have collected from her own benefits package alone.
If you are eligible for your own Social Security benefits and you apply for both your own retirement benefits and spousal benefits, the agency will pay your own benefits first. If your benefits as a spouse are higher than your own retirement benefits, you will get an additional amount so the combination of benefits equals the higher amount.
When to claim
The earlier you claim spousal benefits, the less you get. If you wait until full retirement age (66 or 67, depending on your birth year), you will get 50% of your spouse’s benefit. On the other hand, the percentage of your spouse’s Social Security you will receive at age 62 is 32.5%.
These payments won’t ever decrease your benefits. But according to Andrew Latham, a certified financial planner, there’s a limit to how much the agency will pay per family, known as the maximum family benefit.
Generally, the total amount you and your family can receive is about 150% to 180% of your full retirement benefit.
What if you’re receiving other benefits?
Suppose you also receive a pension from a federal, state or local government based on your own work for which you didn’t pay Social Security taxes. In this case, Social Security will reduce your spousal benefit by two-thirds of your government pension.
Example: Pam gets a $600 monthly civil service pension from a plan that never withheld Social Security taxes. The Social Security spousal benefit she receives will be decreased by $400.
How about same-sex couples?
The Social Security Administration recognizes same-sex couples’ marriages in all states, meaning same-sex couples are eligible for Social Security’s spousal benefits. Some nonmarital legal relationships, such as domestic partnerships and civil unions, are also recognized by Social Security.
How much Social Security does an ex-spouse get?
It may seem unfair, but your ex-spouse can get part of your Social Security. Here’s a summary of the rules that apply:
- Your ex-spouse must be 62 or older.
- Your ex-spouse must not be married.
- Your marriage must have lasted 10 years or more.
- The benefits your ex-spouse is entitled to receive based on their own work must be less than the benefits they would receive based on yours.
“If your ex-spouse qualifies for benefits, it won’t affect the total amount of benefits you and your family get,” Latham says. “In other words, ex-spouse benefits are not included in the maximum family benefit calculation.”
In situations where an ex-spouse has died, the surviving former spouse’s benefits resemble those of widows and widowers, which we outline below.
Spousal benefits for the bereaved
Surviving spouses who have reached full retirement age may receive 100% of the deceased spouse’s benefit amount. If the surviving spouse has a disability, they may be eligible to receive benefits starting at age 50.
If the widow or widower is age 60 to full retirement age, Social Security will reduce their payments to between 71½% and 99% of the deceased spouse’s benefit amount.
Even if a spouse dies well before retirement age, a widow or widower might be eligible for benefits. But that depends on the deceased spouse’s credits, which are units a person earns when they work and pay Social Security taxes.
No one needs more than 40 credits (10 years of work) to be eligible for Social Security benefits. The younger a person is, however, the fewer credits they need for family members to receive survivor benefits.
If your spouse dies while you are receiving the full 50% spousal benefit, it converts to a survivor benefit of 100%.
Tip: Apply for survivor benefits promptly. In some cases, they are not retroactive.
Benefits for surviving spouses and surviving divorced spouses may be affected by additional factors, including whether they remarry.
Frequently asked questions (FAQs)
Even if you have never worked under Social Security, you may be eligible for benefits if you are at least 62 years old and your spouse is receiving retirement or disability benefits.
You generally must be married for one year before you can get spousal benefits. If you are the parent of your spouse’s child, however, the one-year rule does not apply.
The earlier you claim spousal benefits, the less you get. If you wait until full retirement age, you will get 50% of your spouse’s benefit.
Once you determine you are eligible for spousal benefits, you can apply on the Social Security Administration’s website, calling its toll-free number or visiting your local Social Security office. You will need to provide various documents, including the following:
- Birth certificate or other proof of birth.
- Marriage certificate (if applying as a spouse).
- Divorce decree (if applying as a divorced spouse).
- Social Security number.
- Proof of U.S. citizenship or lawful alien status.
- Military discharge papers (if applicable).
- W-2 forms and/or self-employment tax returns for the previous year.
