Social Security spousal benefits provide an important source of income for millions of Americans, offering up to 50% of a spouse’s benefit amount. While this can be a helpful financial boost, many people make critical errors when claiming these benefits — mistakes that can permanently reduce their income. If you are planning to claim Social Security spousal benefits, it is vital to understand how the system works to avoid costly pitfalls.
What Are Social Security Spousal Benefits?
Spousal benefits are designed for married individuals whose own Social Security retirement benefit is less than half of their spouse’s benefit. In such cases, the lower-earning spouse may claim benefits based on their partner’s work record, receiving up to 50% of their spouse’s full retirement benefit (calculated at their Full Retirement Age or FRA).
To qualify for spousal benefits, you must be at least 62 years old, and your spouse must already be receiving their own Social Security retirement benefits. The benefits can provide crucial supplemental income, especially if one spouse earned significantly less over their working years.
For more detailed eligibility rules and how benefits are calculated, the official Social Security Administration website offers a comprehensive guide: SSA – Spousal Benefits.
The Major Mistake: Claiming Too Early or Too Late
A common and costly mistake people make with spousal benefits is not timing their claim correctly. Unlike your own retirement benefits, spousal benefits do not increase if you delay claiming beyond your Full Retirement Age (FRA).
What is Full Retirement Age?
The FRA is the age at which you become eligible to receive full Social Security benefits. For most people born in 1960 or later, this age is 67. For those born earlier, the FRA ranges from 65 to 66 and a few months.
If you claim your own retirement benefits before your FRA, your benefit amount is permanently reduced, but it will increase if you delay claiming until after FRA (up to age 70), thanks to delayed retirement credits.
However, spousal benefits are different. They reach their maximum at your FRA and do not increase if you wait longer. This means:
- Claiming spousal benefits before your FRA results in a permanent reduction of your benefit amount.
- Claiming spousal benefits after your FRA does not increase your benefit.
Therefore, the best strategy for most people is to claim spousal benefits right at your Full Retirement Age to maximize your payout.
Why Does This Mistake Matter?
Claiming spousal benefits too early can reduce your monthly payments by as much as 30% or more, and this reduction is permanent — you will receive that lower amount for the rest of your life. For many retirees, this can mean thousands of dollars lost over time.
On the other hand, waiting past FRA to claim spousal benefits offers no financial advantage. Unlike your own retirement benefits, spousal benefits don’t earn delayed retirement credits, so waiting longer only delays income without increasing monthly payments.
Other Important Considerations
- Your Spouse Must Be Receiving Benefits
You cannot claim spousal benefits unless your spouse has filed for their own retirement benefits. This rule is important to plan for because your spousal benefit depends on your spouse’s filing status. - Divorced Spouses May Qualify
Even if you are divorced but were married for at least 10 years, you may qualify for spousal benefits based on your ex-spouse’s record, provided you meet age and other eligibility requirements. - Working While Claiming
If you continue working while claiming benefits before your FRA, your benefits might be temporarily reduced based on how much you earn. After you reach FRA, this limit no longer applies. - Coordination with Own Retirement Benefits
If your own retirement benefit is higher than your spousal benefit, Social Security will pay your own benefit first. You won’t receive spousal benefits unless they are higher than your personal retirement benefits, in which case you get a combination of your benefit plus the difference.
How to Avoid the Mistake
- Know Your Full Retirement Age
Find out your exact FRA based on your birth year using the SSA calculator. - Plan Your Claim Timing
For spousal benefits, plan to claim at your FRA to avoid permanent reductions. - Consult a Financial Advisor
Social Security claiming strategies can be complex, especially if you have multiple sources of income or complicated marital history. Professional advice tailored to your situation can help maximize your lifetime benefits. - Use SSA’s Online Tools
The Social Security Administration provides calculators and estimators to help you understand how much you may receive from spousal benefits and when to claim: SSA Benefit Calculators.
Conclusion
Social Security spousal benefits can be a valuable part of your retirement income, but timing is everything. The major mistake that many make is either claiming spousal benefits too early or waiting too long beyond their Full Retirement Age. Unlike personal retirement benefits, spousal benefits do not grow with delayed claiming, so waiting beyond FRA provides no advantage.