How do Social Security spousal benefits work?

Dear Savvy Senior: How do Social Security spousal benefits work? My wife, who’s approaching age 62, has had a few small-paying jobs over the years but spent most of her time as a homemaker. What is she entitled to? — Primary Breadwinner

Dear Primary Breadwinner: Questions about spousal benefits are among the most frequently asked and confusing parts of Social Security.

The rules that govern qualifying and claiming are knotty, and there are many exceptions. But understanding how these benefits work is crucial for maximizing your family’s retirement income.

Here’s what you should know.

What are spousal benefits?

Social Security spousal benefits are designed to provide retirement income to spouses who either didn’t work or worked sporadically/part time and earned significantly less than their spouses over their working lifetime. A stay-at-home parent is a good example of a spousal benefit recipient.

Who’s qualifies?

To qualify for spousal benefits, you and your wife must meet three conditions: Your wife must be at least 62; you must be married for a year or more; and you must already be collecting retirement benefits.

Different rules apply for former spouses. Ex-spouses (if they were married for at least 10 years and are not remarried) can receive a spousal benefit based on an ex-spouse’s record even if their ex has not yet filed for their own benefits. But the ex must be 62 or older.

How much are benefits?

The amount your wife would get for spousal benefits will depend on your earnings history and her claiming age.

The maximum spousal benefit is 50 percent of your primary insurance amount (PIA), which is the amount you’re entitled to at full retirement age benefit. But your wife will only get that much if she waits until her full retirement age to file, which is 67 if she was born in 1960 or later.

Spousal benefits do not increase by waiting beyond full retirement age, but they do decrease if taking them early.

So, for example, if your wife were to start collecting her spousal benefits at 62 (the earliest possible age), she would get only 32.5 percent of your PIA.

Social Security provides a spousal benefits calculator at SSA.gov.

Because spousal benefits are based on your PIA, even if you (the primary earner) retire early, before you reach full retirement age, your wife’s spousal benefit will not be reduced. Just as it will not increase if you delay claiming your benefits beyond full retirement age.

You should also note that if your wife worked and is entitled to benefits on her own work record, but it’s less than what she’s entitled to as a spouse, Social Security will pay her the higher of the two amounts, but not both.

Survivor benefits

In addition to spousal benefits, Social Security pays survivor benefits to spouses and ex-spouses starting at age 60 (50 if disabled).

So, if your wife outlives you, she’ll be able to switch from her spousal benefits to survivor benefits and receive a higher payment. Survivor benefits range from 71.5 to 100 percent of the deceased’s benefit, based on your wife’s age when she claims.

But there is one exception: Surviving spouses and ex-spouses who are caring for children of the deceased worker, if they under age 16 or disabled, are eligible for 75 percent of the worker’s benefit amount at any age.

Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org.