The Social Security Administration has officially confirmed that individuals can receive spousal benefits, allowing them to collect up to 50% of their partner’s retirement payment, even if they have never held a job. This announcement sheds light on a crucial aspect of the U.S. Social Security system that many may not realize exists.
In the United States, spousal benefits are available not only to those who have worked but also to husbands, wives, and certain ex-spouses. These benefits can serve as a critical financial resource for individuals with little or no work history. Currently, around 2 million people benefit from these payments, a small fraction compared to over 53 million who receive regular retirement benefits. Understanding the eligibility criteria can help many more individuals take advantage of these benefits.
Eligibility Criteria for Spousal Benefits
To qualify for spousal benefits, there are four main criteria that must be met:
1. **Eligibility of the Working Spouse**: The first requirement is that your spouse must be eligible for their own retirement benefits. This means they need to have completed 40 credits, equating to approximately ten years of work. For the year 2025, one credit is earned for every $1,810 in income, with a maximum of four credits available annually. If your spouse does not meet this work history requirement, you cannot claim spousal benefits.
2. **Marriage Duration**: If you are currently married, you typically need to have been married for at least one year to qualify for spousal benefits. There are exceptions to this rule: if you and your spouse have a child together, or if you were previously qualified for Social Security benefits before marrying. For divorced individuals, the requirement is a minimum of ten years of marriage, and you must remain unmarried to claim these benefits.
3. **Timing of Benefit Claims**: Generally, you cannot receive spousal benefits until your spouse has started receiving their retirement benefits. However, you can begin claiming your own retirement benefits if you qualify based on your work history. If you have been divorced for at least two years, you may also claim spousal benefits based on your ex-spouse’s record, even if they have not yet filed for their own benefits.
4. **Benefit Amounts**: If you qualify for both spousal and personal retirement benefits, you will receive the higher of the two amounts, not the total. The maximum spousal benefit is typically half of your spouse’s full retirement age (FRA) benefits. For individuals born in 1960 or later, the current FRA is 67 years old. Benefits may reduce if claimed before reaching FRA, with personal benefits increasing if delayed up to age 70.
Understanding Your Options
In practice, many individuals find that the spousal benefit is only advantageous if their partner earned significantly more throughout their career. Consequently, most Americans often opt for their own retirement benefits instead.
Considering both options is crucial for financial planning. Many may not be aware that spousal benefits can serve as a vital safety net, particularly for those who have not participated in the workforce.
For those eligible, it is advisable to thoroughly explore the possibilities and ensure you are making informed decisions regarding your retirement planning. The Social Security Administration remains a key resource for further information on these benefits, providing guidance tailored to individual circumstances.
