Social Security Spousal Benefits: Maximizing Income for Married and Divorced Couples
CORE INSIGHTS
- The 50% Rule: A spouse can claim up to 50% of the primary earner’s full retirement benefit, potentially exceeding their own benefit amount.
- Coordination is Key: For married couples, the higher earner often needs to delay claiming to maximize the guaranteed survivor benefit for the household.
- Divorce Advantage: Divorced spouses (married 10+ years) can claim benefits on an ex-spouse’s record without their permission or knowledge.
Social Security offers a powerful but often overlooked income boost: **Spousal Benefits**. This rule allows a lower-earning spouse to collect a benefit based on the higher earner’s record. **Claiming strategies dictate** your lifetime household income, making coordination between spouses (and understanding divorce rules) a critical component of **retirement planning**.
Deemed Filing: A rule stating that when you apply for your retirement benefit, you are also deemed to have applied for spousal benefits.
Imagine a low earner’s benefit is $1,100/mo. The higher earner’s FRA benefit is $3,200/mo.
• Your Benefit: $1,100/mo.
• 50% Spousal Benefit: $1,600/mo.
Result: **The lower earner should claim the $1,600 Spousal Benefit, gaining an extra $500/month.** The higher earner’s own check is unaffected by this claim.
**Data confirms** the ‘Higher Of’ rule is mandatory for maximizing household income.
Visualizing the Benefit Gap
**The chart below illustrates** the decision point for a low earner: when the benefit derived from the high earner’s record provides a clear financial advantage over the individual’s own work record.
*Figure 1: Comparison of monthly benefits. The Social Security Administration automatically pays the higher of the two amounts.*
Expert Insight:
**The most crucial rule is protecting the survivor.** The surviving spouse inherits the larger of the two benefits. Therefore, **maximizing the higher earner’s benefit (by delaying until age 70) provides the largest possible guaranteed income for the surviving partner**, acting as vital longevity insurance.
Rules for Married vs. Divorced Spouses
| Rule | Married Couple | Divorced Spouse |
|---|---|---|
| Eligibility | Must be married at least 1 year. | Must have been married 10+ years. |
| Current Status | Currently married. | Currently **unmarried**. |
| Primary Earner Status | Must have filed for benefits. | Does **NOT** need to have filed (if divorced 2+ years). |
| Maximum Benefit | 50% of spouse’s PIA. | 50% of ex-spouse’s PIA. |
Strategic Action Steps
**Claiming early reduces benefits.** To receive the full 50% spousal benefit, the claiming spouse must wait until their own FRA (age 66 or 67). Claiming at 62 reduces the benefit to as low as 32.5%.
For married couples, the lower earner cannot claim spousal benefits until the higher earner files. **Strategic planning** often involves the high earner filing at FRA or 70 to unlock the spousal portion.
If divorced, **verify the length of marriage.** If it was at least 10 years, you may be entitled to significant benefits on your ex-spouse’s record, even if they have remarried.
The Bottom Line: Maximize the Household
- Married: Coordinate. The higher earner delaying to age 70 maximizes the survivor benefit.
- Divorced: Claim the higher of your own benefit or the 50% spousal benefit after reaching age 62.
Frequently Asked Questions
No. The SSA pays your own benefit first. If the spousal benefit is higher, they add a “top-up” amount to equal the spousal benefit level. You effectively receive the higher of the two.
No. The Social Security Administration does not notify your ex-spouse. Your claim has **zero impact** on their benefits or the benefits of their current spouse.
You switch to **Survivor Benefits**. A surviving spouse can receive 100% of the deceased spouse’s benefit (including any delayed retirement credits), replacing their own smaller benefit.