When creating a financial planning strategy for retirement, understanding the role of Social Security benefits is essential. Two commonly misunderstood components—spousal benefits and survivor benefits—are both based on a spouse’s or ex-spouse’s work history; however, they differ significantly in terms of timing, eligibility, and benefit amounts. Whether you’re planning for your retirement or preparing for life after the loss of a spouse, knowing how these benefits work can help you make more informed decisions that support long-term financial security.
Spousal benefits are based on a living spouse or ex-spouse’s work history.
Survivor benefits are based on a deceased spouse or ex-spouse’s work history.
There are some significant differences in the amount, timing, and eligibility of these benefits.
Spousal Benefits
- The maximum spousal benefit is 50% of the worker’s full retirement age (FRA) benefit.
- The benefit is based on the worker’s FRA benefit and is not enhanced by delayed retirement credits.
- Age 62 is the earliest a spouse can claim a spousal benefit. If the spouse files before FRA, they would receive a reduced amount, as low as 32.5% of the worker’s benefit, stepping up to 50% if they filed at FRA.
- They must be married for at least 12 months to qualify for the benefit.
- Divorced individuals may be eligible if
- They were married for at least 10 years and are currently unmarried.
- The ex-spouse is eligible for benefits (though they don’t necessarily have to be receiving them if the divorce occurred at least two years prior).
- Note, if remarried, one is no longer eligible for their ex-spouse’s benefits. If the later marriage has ended, they can once again collect the benefits of an ex-spouse based on the SSA’s rules.
- They can also qualify at any age if caring for a child under 16 or a disabled child who receives benefits on the spouse’s record.
Understanding how spousal benefits factor into your overall financial plan, and specifically for retirement, can help maximize your long-term income.
Survivor Benefits
- The maximum survivor benefit is 100% of the deceased worker’s last Social Security benefit, including any delayed retirement credits the worker may have accrued by waiting until age 70.
- Survivor benefits would be based on the worker’s reduced benefit, not their FRA benefit if the deceased worker had applied for early benefits.
- Age 60 is the earliest a spouse can claim a survivor benefit. The widow(er) could claim a survivor benefit equal to 71.5% of the deceased worker’s benefit, stepping up to 100% if they filed at their FRA.
- They must be married for at least 9 months to qualify for the benefit.
- If divorced, you may still be able to apply for benefits based on your ex-spouse’s work if you were married for at least 10 years and are currently unmarried.
- They may also claim benefits if remarried after the age of 60 (or 50 with a disability). At age 62 or older, one can receive benefits based on the new spouse’s work record, if those benefits are higher.
- A surviving spouse may be able to get benefits at any age if they take care of a child who is younger than age 16 or who has a disability. The child must be receiving Social Security benefits.
- Dependent parents may be able to get benefits if they’re age 62 or older. For parents to be eligible as dependents, the child must have provided at least half of their support.
For those navigating life after a spouse’s passing, survivor benefits can play a vital role in retirement income planning and financial stability.
Planning for a Stronger Retirement
Maximizing your Social Security benefits can have a significant impact on your overall financial plan and in retirement. Whether you’re coordinating benefits with a spouse or preparing for unexpected life changes, making informed decisions today can lead to a more stable income tomorrow. A retirement-focused financial adviser, acting as a fiduciary, can help you evaluate your options and optimize your benefits, enabling you to build a strategy that supports long-term independence and peace of mind.
This article was originally published on July 19, 2016, and was updated for accuracy and relevance on the date above.
