How are Social Security Spousal Benefits Calculated?

Of all the retirement topics couples need to discuss, Social Security should definitely be on the list. While not the ideal date night conversation, it is something you should get to as soon as possible. Understanding how it works, especially spousal Social Security, is important when planning your financial future together.

Social Security is a federal program that provides retirement income to qualified individuals. It also offers benefits for those with disabilities and, in many cases, their families. If you or your spouse has worked and paid into the system for at least 10 years, you may be eligible not only for your own benefit but also for spousal benefits.

According to a study conducted by the American Association of Retired Persons (AARP), more than 75% of Americans are concerned that their Social Security benefits will not be sufficient to rely on during retirement. This concern is not unfounded. Some reports suggest that Social Security could be depleted by 2033. Still, Social Security benefits remain an integral cog of retirement planning and can even play a role in legacy planning with spousal benefits.

So, how are spousal benefits calculated for Social Security? What are the eligibility rules? And when should you claim to get the most out of them? Let’s find out all this and more!

First things first, let’s understand what exactly spousal Social Security benefits are.

Here is the basic idea – Spousal benefits are a type of retirement benefit that offers financial support to spouses.

If you are married, you may be eligible to receive spousal Social Security benefits based on your own work record. You may also qualify for a spousal benefit, which can be up to 50% of your spouse’s full retirement benefit.

But you will not get both.

You will automatically receive the higher amount. Additionally, you only get spousal benefits if your spouse has already been receiving their Social Security retirement or disability benefits. If they have not filed yet, you will have to wait until they do.

Now, if you did not work enough to earn Social Security benefits on your own, or your check is quite low, the spousal option can be a real financial boost for you. It does not take anything away from your spouse’s check, either. Their benefit amount stays exactly the same. You just get an added benefit that recognizes the value of both partners in the household, even if only one has a long work history.

Additionally, if you are eligible for benefits on your record and the amount is higher than the spousal amount, Social Security will pay you your own. If it is less, they will give you the spousal amount. You do not need to choose, and they will simply pay the higher one

Who is eligible for spousal Social Security benefits?

To qualify for spousal benefits under Social Security, you must meet a few basic criteria set by the Social Security Administration (SSA). You may be eligible for spousal benefits if and only if:

You are at least 62 years old, and your spouse is already receiving Social Security retirement or disability benefits

You are any age and caring for:

A child under the age of 16 or
A disabled child who is entitled to receive benefits based on your spouse’s record

If you are caring for a child who qualifies due to age or disability and is entitled to benefits on your spouse’s record, you can receive full spousal benefits, even if you have not yet reached Full Retirement Age (FRA). It is also important to note that you must be legally married to your spouse, and they must have filed for their own benefits before you can receive yours, as already mentioned above.

However, this does not mean that spousal benefits are limited only to current spouses. In fact, ex-spouses and widowed spouses may also qualify for these benefits, provided they meet specific conditions. Here’s what you should know:

If you are divorced, you can receive divorced spousal benefits as long as you are currently unmarried. Additionally, you must also meet the general eligibility requirements, such as age. Lastly, your marriage should have lasted at least 10 years.
If you are a widowed spouse, you may be eligible to receive up to 100% of your late spouse’s benefit, also known as survivor benefits, if you have reached your FRA. You can choose to claim Social Security survivor benefits before reaching your FRA. But in this case, the amount will be reduced.

Now, let’s move to the main topic of this article, how to calculate spouse Social Security benefits.

Spousal Social Security benefits are calculated based on your spouse’s full retirement benefit. This is the amount they would receive at their FRA. As a spouse, you may be entitled to up to 50% of that amount if you claim at your own FRA.

Your birth year decides your FRA. Here’s how this is done:

If you were born in 1942 or earlier, your FRA is 65
For those born between 1943 and 1959, the FRA automatically increases to 66
And, for those born in 1960 or later, the FRA is 67

Your actual spousal benefit depends on two main factors:

When you claim the benefit: If you file for Social Security benefits before reaching your own FRA, your check will be reduced. However, if you claim them at your FRA, you will get the rightful amount.
Your work record: If you qualify for Social Security benefits on your own and that amount is higher than the spousal benefit, you will receive your own benefit instead. If your own benefit is lower, the SSA will supplement it with the spousal amount. This will bring you up to the higher total. Your spouse’s actual retirement date does not affect how your spousal benefit is calculated unless they are working while claiming Social Security. What matters is their full benefit amount, not what they are currently receiving.

To calculate your exact benefit, you can use the SSA’s online calculators. These are fast, efficient, and also accurate. If not, you can follow these steps to calculate spousal benefits in Social Security on your own:

a. Start with your FRA and your spouse’s FRA

Before anything else, you need to pin down your FRA. This is the age when you become eligible to receive full spousal benefits. As explained above, this age is determined by your birth year. So, take your birth year and find out your FRA. Also, determine your spouse’s FRA.

b. Then, figure out your spouse’s PIA

Take a look at what your spouse is set to receive at their FRA. This amount is referred to as the Primary Insurance Amount (PIA). It is the monthly benefit they are entitled to if they claim exactly at their FRA. The spousal Social Security benefits are calculated based on the PIA.

Note: The PIA is a crucial component in the calculation. If you take the value of what your spouse is receiving before or after their FRA, the PIA will not be accurate. So, take the PIA at the correct FRA.

c. Understand the 50% ceiling for benefits

Once you know your spouse’s PIA, here is a general rule you can follow:

The maximum spousal benefit you can receive is 50% of your spouse’s PIA. However, that is only available if you claim at your own FRA. Any earlier, and the amount will shrink. Claiming these benefits later also does not really help, as there is no bonus for waiting beyond your FRA when it comes to spousal benefits.

This is how you can calculate your spousal benefits. Now, if you are curious about how your spousal benefit is calculated, here are a few questions answered.

Frequently Asked Questions (FAQs)

1. What happens if you plan to claim spousal benefits before reaching your FRA?

If you are thinking of filing for spousal benefits before reaching your FRA, your monthly benefit will take a hit.

How much of a hit?

Well, the earlier you file, the more your benefit is reduced. For the first three years or 36 months that you claim ahead of your FRA, your benefit is reduced by about 0.7% for each month. Although it may seem like a small figure, it can add up quickly.

Now, if you claim it even earlier than 36 months, the reduction decreases to about 0.4% per month.

What does that mean for you?

Let’s say you claim a few years early. You could end up receiving only around 35% to 45% of your spouse’s full benefit.

Let’s say your FRA is 66. Now, if you claim your spousal benefit at 65 instead, you would receive about 45.8% of your spouse’s full benefit. At 64, it would drop further to 41.7%. By 63, you would be looking at just 37.5%. And if you file as early as you are allowed, which at 62, you would get only 35% of what your spouse is entitled to.

So, while claiming early is an issue, one that you may consider, especially if you need the income, it is essential to understand how much you may be giving up.

2. How do you apply for spousal Social Security benefits?

You have got a few options:

Online: The quickest and easiest way is to visit ssa.gov.
Phone: Call Social Security at 1-800-772-1213.
In person: If you prefer claiming your benefits face-to-face, you can stop by your local Social Security office.

To apply, you will need to gather a few documents. You can expect to be asked for:

Proof of your birth, like a birth certificate
Your spouse’s (or ex-spouse’s) date of birth and Social Security number
Marriage or divorce documents, depending on your filing situation
W-2s or self-employment tax forms
Naturalization papers, if applicable

3. What happens if you worked a government job that did not pay into Social Security?

Public sector workers fall into this category. Thanks to the Social Security Fairness Act, you may still qualify for spousal benefits, even if your job did not contribute to Social Security. Just note that there may still be some adjustments based on your government pension.

Also, you need to meet two conditions to be eligible:

You need to be at least 62 years old
Your spouse must already be receiving their retirement or disability benefits

4. Will your spouse’s job affect your benefit?

This one’s tricky. If you are receiving retirement benefits, your spouse’s earnings will not impact them. But if your spouse has not yet reached FRA, has started collecting their Social Security benefits, and is still earning a paycheck, the earnings test might be used to evaluate their benefits.

Here’s what this will result in:

Some or all of your spouse’s benefits could be withheld, and it could also temporarily affect the spousal benefit you receive. However, once your spouse reaches FRA, those reductions go away, and benefits will be adjusted accordingly.

Key takeaways

Know how the calculation works: Understanding how spousal benefits are calculated is crucial. It helps you avoid errors and ensures you can plan ahead efficiently. Consult with a financial advisor or use the SSA online calculators to be more thorough.
FRA is crucial: Your FRA plays a big role in determining how much you will receive. Choosing the right age to claim and ideally waiting until your FRA can make a noticeable difference in your monthly benefit. So, do not undermine it.
Your relationship status matters: Whether you are currently married, divorced, or widowed affects your eligibility and the amount you can claim. Make sure you understand the specific rules that apply to your situation.
Spousal benefits can be tricky: Spousal Social Security benefits have numerous detailed rules, making it easy to become Consider consulting a financial advisor who can help you plan effectively. If you don’t have one yet, tools like the free advisor match tool can help you find someone qualified to guide you.