Understanding key rules for spousal Social Security benefits can maximize your retirement income

From Nasdaq: 2024-05-08 06:00:00

In March 2024, nearly 1.9 million workers claimed spousal Social Security benefits, receiving an average of $912 per month, totaling just under $11,000 annually. To maximize your Social Security spousal benefit, understand three key rules. First, timing is crucial, as benefits revolve around your full retirement age, ranging from 66 to 67 based on birth year. You qualify for your maximum spousal benefit at your FRA, worth half your partner’s benefit. Claiming benefits as young as 62 reduces your checks. Additionally, changes in marital status can impact your spousal benefit eligibility.

Dually eligible spouses who have earned Social Security retirement benefits based on their own work history and qualify for a spousal benefit receive the larger of the two. Retirement benefits continue growing until age 70, providing a higher benefit compared to the FRA. When both partners are dually eligible, delaying Social Security can maximize household benefits. The lower earner may benefit from claiming retirement benefits early, while the higher earner delays to receive larger checks.

Marriage status changes affect spousal benefits; divorces before ten years or remarriages forfeit these benefits. Review your Social Security claiming strategy after any change. Lastly, consider investing in the 10 best stocks recommended by The Motley Fool Stock Advisor analysts for potential high returns, setting you up for a prosperous retirement.



Read more at Nasdaq: Spousal Social Security Benefits: 3 Things All Retired Couples Should Know