Why You Should Consider Not Claiming Spousal Social Security Benefits Before Full Retirement Age
Key Points
Spousal benefits allow you to receive Social Security based on your partner's work history.
You must be 62 years old and have been married for at least a year to be eligible for spousal benefits.
Claiming spousal benefits before your full retirement age reduces your benefit by a larger percentage than standard benefits.
The amount of your Social Security checks comes down to two factors: your earnings history and the age at which you claim benefits. But thankfully for some people who may have inconsistent or short work histories, there's a chance to also receive benefits by claiming based on your spouse's earnings history.
There are currently over 2 million people receiving Social Security spousal benefits, with many of them younger than their full retirement age (67 for people born in 1960 or later). However, as with standard benefits, there's a trade-off to consider when claiming spousal benefits early, and it may not be in everyone's best interest.
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Who is eligible to receive spousal benefits?
To be eligible for spousal benefits, the following must be true:
- You have been married for at least one year
- Your spouse is currently receiving benefits
- You are at least 62 years old, caring for a child under age 16, or caring for a child with a disability that began before age 22
If you plan to claim spousal benefits but your spouse is not yet receiving benefits, you can claim your own benefits and then switch to spousal benefits once you're ready.
Why claiming spousal benefits early may not be the best idea
Claiming both standard and spousal benefits before your full retirement age will reduce your monthly benefit, but spousal benefits are reduced by a larger percentage.
Standard retirement benefits are reduced by 5/9 of 1% monthly for the first 36 months and then by 5/12 of 1% monthly for any additional month. Spousal benefits are reduced by 25/36 of 1% monthly for the first 36 months and then by 5/12 of 1%.
If your full retirement age is 67, here's how much your monthly benefit would be reduced based on your claiming age:
| Claiming Age | Standard Benefit Reduction | Spousal Benefit Reduction |
|---|---|---|
| 66 | 6.67% | 8.33% |
| 65 | 13.33% | 16.67% |
| 64 | 20% | 25% |
| 63 | 25% | 30% |
| 62 | 30% | 35% |
Calculations by author based on Social Security rules.
Let's assume you're claiming spousal benefits and your spouse's primary insurance amount is $2,000. This would make you eligible to receive $1,000 by claiming at your full retirement age, but the following is how much you'd receive by claiming early:
- Age 66: $916.70
- Age 65: $833.30
- Age 64: $750
- Age 63: $700
- Age 62: $650
Make sure you fully weigh the trade-off
The idea of receiving benefits before your full retirement age may sound appealing, but make sure you're aware of just how much your benefit could be reduced by doing so.
In some cases, the extra months of receiving benefits are worth the smaller amount. In other cases, where someone doesn't necessarily need benefits to cover their immediate expenses, waiting until full retirement age makes the most sense.
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