Refined Retirement Strategy: How to Optimize Your Social Security Benefits as a Spouse

For many households, income from social security forms a vital pillar in retirement planning. What is often overlooked is the potential of spousal benefits. These benefits can provide significant financial support, particularly for households where one or both partners are no longer working. A careful review of one’s eligibility on the U.S. Social Security Administration’s website is absolutely worthwhile – we highlight three key points that are crucial before applying. Spousal benefits can be substantial: Eligible individuals can claim up to half of their spouse’s full retirement benefit. Given an average monthly social security income of $1,884, many households with retirees can receive more than an additional $900. In cases where the maximum benefit is granted, this amount can even reach nearly $2,000 monthly. As financial planners often recommend replacing about 80% of pre-retirement income to maintain the standard of living, this additional income can fill a critical gap. To receive spousal benefits, you must be at least 62 years old and have been married for at least one year. Divorced, unmarried spouses are also eligible. However, eligibility is contingent upon the spouse receiving their own retirement benefits, which is particularly important for households where the primary earner plans to delay retirement and social security benefits. Spousal benefits are not intended to dramatically increase the income of individuals with their own employment. In most cases, the calculated amount of the spousal benefit is reduced by the individual's own retirement benefits. This prevents someone from fully exploiting both their own and spousal benefits. Furthermore, one cannot initially claim the spousal benefit at 62 and later apply for their own higher benefits. Spousal benefits are structured similarly to regular retirement benefits, but starting them before the normal retirement age can reduce monthly income by up to 35%. Unlike individual benefit accounts, income from spousal benefits does not increase between normal retirement age and age 70 – there is no incentive to wait beyond the normal retirement age. With a larger age difference between spouses, the timing of applications can be crucial, as the primary earner might maximize their benefits by delaying until age 70, while the partner might receive a reduced payment if they are under 67 years old.