Many families are concerned about Social Security for a nonworking spouse. When one spouse has not worked or has a limited work history, questions about eligibility for benefits often arise. The Social Security Administration offers spousal benefits based on the working spouse’s earnings record, providing financial support in retirement even for those who have not worked. If you need help
If you need help figuring out your retirement benefits, a financial advisor can work with you to maximize your nest egg.
Who Qualifies for Social Security Benefits for a Nonworking Spouse?
One of the key rules for qualifying for spousal benefits is the duration of the marriage. Generally, the couple must have been married for at least one year before the nonworking spouse can claim benefits. The nonworking spouse must also be at least 62 years old, and the working spouse must already be receiving Social Security retirement or disability benefits. However, if the non-working spouse is caring for a qualifying child who is under 16 or disabled and receiving Social Security benefits, they can qualify regardless of their age or the length of the marriage.
Calculating Social Security for a Nonworking Spouse
To determine the exact amount, the Social Security Administration (SSA) first calculates the working spouse’s primary insurance amount (PIA.) What is this social security benefit based on? Primarily their earnings history, years worked and age at retirement. Once this figure is established, the nonworking spouse’s benefit is derived as a percentage of that amount.
If the nonworking spouse opts to start receiving benefits before reaching full retirement age – which is between 66 and 67 depending on the year of birth – the benefit will be reduced based on the number of months remaining until they reach full retirement age. For example, if the nonworking spouse claims at age 62, they may receive only about 32.5% of the working spouse’s benefit instead of the full 50%. It’s important to note that the spousal benefit does not increase beyond the 50% threshold, even if the working spouse delays their benefits past full retirement age.
Spousal Benefits in Action
Here’s an example of a couple in their mid-60s. One spouse has worked for 35 years, consistently paying into Social Security, while the other chose to be a stay-at-home parent. As they approach retirement, they are exploring Social Security options for the non-working spouse.
The working spouse’s full retirement age (FRA) is 67, with a monthly Social Security benefit of $2,500. The non-working spouse, with minimal work history, can receive spousal benefits based on the working spouse’s earnings record, up to 50% of the working spouse’s full benefit.
When the non-working spouse reaches their FRA of 67, they can claim a spousal benefit of $1,250 per month. If claimed before FRA, the benefit is reduced. For example, claiming at 62 would result in about 32.5% of the working spouse’s benefit, or $812.50 per month.
Can a Nonworking Spouse Collect If They’re Divorced?
Yes, a nonworking spouse can collect Social Security benefits if they are divorced so long as the marriage was 10 years or more and the non-working spouse is at least 62 years old and currently unmarried.
Additionally, the working spouse must be eligible for Social Security benefits. This provision ensures that non-working spouses who dedicated years to supporting their families without earning their own Social Security credits can still receive financial support in retirement.
How to Claim Spousal Benefits
To claim spousal benefits, you can follow these basic steps:
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Determine eligibility: Ensure that the working spouse has filed for their own Social Security benefits. The non-working spouse must be at least 62 years old or caring for a child who is under 16 or disabled.
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Gather necessary documents: Marriage certificates, birth certificates and Social Security numbers for both spouses.
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Apply online or in person: You can apply for spousal benefits online through the Social Security Administration’s website or by visiting a local Social Security office.
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Wait for approval: After submitting your application, the Social Security Administration will review your information and notify you of your benefit status.
Bottom Line
Social Security for non-working spouses allows them to claim up to half of their partner’s full retirement benefit. They can start receiving benefits at 62, but waiting until full retirement age increases the amount. Working with a retirement advisor could help you get additional insight into your long-term financial planning.
Tips for Retirement Planning
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