Social Security may look straightforward, but the rules behind it can be more complicated than many retirees expect. Decisions involving marriage, divorce, survivors and children can affect when benefits are available and how much a household receives.
For married couples in particular, the timing of one spouse’s claim can affect the other spouse’s financial protection later. Knowing these provisions before filing can help households make more informed retirement decisions.
Here are four Social Security rules that are worth reviewing before claiming benefits.
Survivors
Many people assume Social Security planning starts around age 62, but that may be too late for someone who has already lost a spouse.
An eligible surviving spouse can generally begin receiving survivor benefits at age 60. Claiming before full retirement age can reduce the monthly benefit, but the option provides important flexibility for people who need income before reaching full retirement age.
Consider a simple example. Suppose both spouses would have qualified for $2,000 per month at full retirement age. If one spouse dies, the surviving spouse could potentially claim a reduced survivor benefit before reaching full retirement age.
Using the example discussed by Social Security planning expert Matthew Allen, a survivor claiming at age 60 could receive about 71.5% of the deceased spouse’s $2,000 benefit, or approximately $1,430 per month.
The survivor may then be able to switch to their own retirement benefit later. If their own benefit increases through delayed claiming, waiting until age 70 could result in a larger monthly payment.
This distinction is important because survivor benefits and retirement benefits follow different rules. A survivor benefit generally stops increasing when the survivor reaches full retirement age, while a worker’s retirement benefit can continue increasing through age 70.
For that reason, the order in which benefits are claimed can matter as much as the age at which they begin.
Spouses
Married couples often want to know which spouse should claim Social Security first. There is no single answer, but in some situations the lower earner may be the more appropriate spouse to claim earlier.
The reason is connected to survivor benefits.
If the higher earner delays claiming, their eventual monthly benefit may be larger. If that spouse dies first, the surviving spouse may then qualify for a survivor benefit based on the higher earner’s record.
This can provide greater income protection for the surviving spouse. The strategy can be especially relevant when one spouse has a substantially larger Social Security benefit than the other.
However, delaying the higher earner’s benefit is not automatically the right choice. Health, life expectancy, taxes, other retirement income, household expenses and personal preferences all affect the decision.
Couples should therefore consider more than the size of today’s monthly payment. They should also examine how household income could change after the first spouse dies.
Children
Social Security benefits can extend beyond the worker who earned the qualifying work record. In certain circumstances, children and a spouse caring for a child may also qualify for benefits.
For example, when a parent is receiving certain Social Security benefits, an eligible minor child may receive a benefit based on that parent’s earnings record.
A qualifying child under age 18 can generally receive up to 50% of the parent’s full retirement-age benefit, although family maximum rules may reduce the amount actually paid.
A spouse caring for a qualifying child may also be eligible for a benefit. That payment can generally be up to 50% of the worker’s full retirement-age benefit and may continue until the child reaches age 16, subject to the applicable requirements.
This means one Social Security record can potentially provide benefits to several members of the same family.
Similar provisions may apply in some situations involving divorced parents or the death of a parent. Eligibility depends on the family’s circumstances, the child’s age and other Social Security requirements.
Because family benefits can also be affected by maximum payment limits, families should review their specific situation rather than assume that every potential benefit will be paid in full.
Divorce
Divorce does not necessarily end a person’s ability to receive Social Security benefits based on a former spouse’s work record.
A divorced person may qualify for benefits based on an ex-spouse’s earnings if the marriage lasted at least 10 years and other requirements are met.
Generally, the person claiming must be unmarried, be at least 62 and have a benefit based on their own work record that is lower than the potential divorced-spouse benefit. Additional rules can apply depending on whether the former spouse has started receiving benefits.
At full retirement age, an eligible divorced spouse may receive up to 50% of the former spouse’s full retirement-age benefit. Claiming earlier can result in a reduced amount.
Another provision that can surprise people is that a qualifying ex-spouse’s claim generally does not reduce the former spouse’s own Social Security benefit.
In qualifying cases, an individual can therefore receive benefits based on a former spouse’s earnings record without reducing the former spouse’s retirement payment.
Social Security planning involves more than choosing an age to file. Survivor provisions, spousal benefits, family benefits and divorced-spouse rules can all influence the outcome. The appropriate strategy depends on factors such as age, earnings history, marital status, health, taxes and other sources of retirement income.
Reviewing these rules before filing can help retirees understand the options available to them and avoid making a decision without considering its longer-term effects.
FAQs
Can survivor benefits start at age 60?
Yes, eligible surviving spouses can generally claim at age 60.
Can children receive Social Security benefits?
Yes, qualifying children may receive family benefits.
Can a divorced spouse claim Social Security?
Yes, if the person meets the applicable eligibility rules.
Does an ex-spouse’s claim reduce my benefit?
Generally, no. A qualifying ex-spouse claim does not reduce it.
