Social Security Spousal Benefits: Why Don’t I Get Half? (3 Basic Rules)
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- เผยแพร่เมื่อ 5 ก.ค. 2024
- How are spousal benefits calculated, and when can you collect half of your spouse’s Social Security? These tips help you simplify the rules.
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A spouse gets half of their spouse’s full retirement age (FRA) benefit assuming you meet several conditions. But switching to a spousal benefit rarely works the way people think.
To maximize the spousal benefit:
✅ The higher-earning spouse is taking benefits.
✅ The lower-earner (or spouse with no benefit of their own) takes benefits at their FRA or later.
✅ No complicating factors exist.
There’s a lot to unpack in those rules, and we discuss it all in this video.
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First, the working spouse or the person with the biggest benefit must “unlock” the spousal benefit by claiming. At that point, the non-working (or lower-earning) spouse can access a spousal benefit of up to half.
But it’s often less than half. So, we’ll look at examples of when a spouse gets half of the benefit amount-and when they don’t. We’ll use OpenSocialSecurity, a free online tool that you can enter your own numbers into.
One of the most important things to know is that when a lower-earning spouse claims early, they will not get 50% of their spouse’s benefit at FRA while they’re both alive. That’s because the base benefit (if any) is permanently reduced. Even if a full spousal top-off is applied, that base benefit keeps the monthly payment lower than half.
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That’s not to say you can’t or shouldn’t claim early. Do an analysis and figure out what’s best for your household. Once you run the numbers and understand all of the moving pieces (including tax strategies that are related to your claiming decisions), you’re in a better position to make the best decision.
Resources:
OpenSocialSecurity: opensocialsecurity.com/
Social Security Bridge Strategy: • Social Security Bridge...
Spousal Claiming at 62 & 70? • Social Security for Sp...
Read the article: www.approachfp.com/how-to-col...
CHAPTERS:
00:00 Let’s Talk About Half
01:53 Basics of Spousal Benefits
03:26 How to Calculate Spousal Benefits for Social Security
05:54 Can You Switch to a Spousal Benefit That’s Half?
06:28 Unlocking Spousal Benefit
07:10 Spousal Benefits Example via OpenSocialSecurity
11:20 Maximizing Spousal Benefit at FRA or Later
14:34 Popular (Split) Claiming Strategy
Justin Pritchard, CFP® is a fee-only fiduciary advisor who can work with clients in Colorado and most other states.
IMPORTANT:
Triple-check all details with the Social Security Administration before making any decisions. Many situations will differ from the example shown here. It's impossible to cover everything you need to know in a video like this. The only thing that's certain is that you need more information than this. Always consult with a CPA before making decisions or filing a tax return. This is general information and entertainment, and is not created with any knowledge of your circumstances. As a result, you need to speak with your own tax, legal, and financial professional who is familiar with your details. This video is not a substitute for individualized, personal advice. Please verify with your plan administrator when employer plans are involved. This information may have errors or omissions, may be outdated, or may not be applicable to your situation. Investments are not bank guaranteed and may lose money. Opinions expressed are as of the date of the recording and are subject to change. “Likes” should not be considered a positive reflection of the investment advisory services offered by Approach Financial, Inc. The Comments section contains opinions that are not the opinions of Approach Financial, Inc., and you should view all comments with skepticism. Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.
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My friend works at SSA and he tells me that the most common complaint is from people who come in to check on their benefits and find out that after working all their lives that they're not going to receive much from their SSI benefits. The most common reason is that they were self-employed and cheated on their taxes for decades. This is sad because all along they were thinking they were getting away with paying less tax but they hurt themselves in the long run and now they're paying the price.
You mean they were self employed the whole time?
When I retired at 62 the SS misinformed me. They told me that when I reached my full age of 65 I would get half of my high earning ex husband’s retirement. This was wrong and my discount on my earrings applies 8:54 to my formers husbands benefits. There is no recourse to wrong info SS gives. I’m glad to hear how correct this video is.
Took benefit early at 62 based on ex FRA...it's reduced. Once he retires at any age, I am going to file for DAC-disabled child in care, thus getting 50%. Will also switch son from SSI to SSDI, still with Medicaid and Medicare (after 2 yrs) because half of his father'
s benefit is more than SSI
You subtract pia then add it right back. So essentially, the max spousal benefit is 1/2
YOU'RE BACK!!! Make more videos!
I was of the understanding that the IRS made a change where a spouse who took early SS benefits was unable to get 1/2 benefits of a higher earner once they start receiving SS benefits. The spouse with the lower benefit must wait until “full retirement age” before they can apply for 1/2 of the higher earner only and not be receiving benefits from their own contributions.
I think the main thing confusing people is that the rules changed and I didn't hear anything about it.
The OLD rules, and it was from financial planners maybe 10-15 years ago, was spousal benefit amount depended ONLY on the age at which the breadwinner retired.
Heard it from more than one qualified source, though not sure directly from SSA.
So I am pretty sure it used to be the rule. They can and do change the rules, but unlike the 65 to 67 transition, this one flew under the radar. It was an unpleasant surprise for me when I read the rules recently.
This is what's not explained on this video. A lot of people had been erroneously advicing the old rules but doesn't know about the birth date 1954 and the change.
She can’t get full benefits amount (half of the spouse) just bc you retired…she has to wait until she is at the age she can retire. Always been that way. But, they have raised the retirement age over the decades which escaped many people and they were surprised to learn theyd get reduced bennys if they took it.
WEP (windfall elimination provision) and GPO (govt pension offset) were not mentioned. I know someone who has never been able to get a penny of spousal benefit because they worked a County job, and per the GPO calculation, spousal benefit was always zero. This is a subset of all claimers, but perhaps a future video could discuss WEP & GPO?
Really good video.
No body knows anything about SSI. Referring to customer Service.
Did you say the lower earner who files at earlier age can still get the full spousal top-off when the higher earner files at FRA ?
What PIA do you use for the lower earning spouse to calculate the spousal benefit if they have taken SSA early.
In my case the lower earning spouse started SSA at 65 which is 16 months early. Do I calculate an adjusted PIA based on their current SSA payment and a reduction of 5/9 of 1% per month? So for 16 months this would be a 8.9% reduction and I would have to increase the current SSA payment by 8.9% to get what the current PIA would be.
Same situation here. I believe you are correct.That's what I previously calculated a couple of weeks ago too.
You would think with only 3 comments you would have gotten your question answered.
I was married 21 years and divorced took s.s. at 62 and x spouse took his at 70 would I be able to go off his record? as an independent entitled divorced spouse?
Is there a worksheet on the sss website thst you can go in and type in the exspouse and your ss numbers so you can see if you can get any exspouse benefit without actually filing??
www.ssa.gov/OACT/quickcalc/spouse.html
What if the higher earner retires before FRA? Will the lower earner get half of that amount when they retire early also?
What if your spouse started SSI at 66 but continued to work until he was 78. I took earlier retirement at. 62. His ss continued to rise in the years he worked after 66. Am I still entitled to half his ss? I am currently 75. Please advise.
You are entitled to half of his full retirement age benefit if it is more than yours. You won't recieve the extra amount he worked over his full retirement years unless he passes away before you, and then you will apply for his survivor benefits which will include the extra years he worked past his full retirement age.
What about disability payments through ss?
Over the past year I've watched many videos regarding the spousal death benefit; no videos, nor the SS website is of any help on this specific question. My wife is 63 and plans to to start collecting soon. Her PIA is basically 1/2 of my PIA (at our FRA's of 67). She is a year older to the month. I plan to wait until age 70 to max out. I do know she can switch to my much higher SS at that point (if I die after 70). What no one cover's, is what happens if I die at say, 66 (she'd be 67); and I have not started my benefit. What is factored into what she collects based upon her age and my age at death? I know, that if she dies, I can start collecting (or continue to collect) hers, and switch over at 70 to collect the max. But I died before 70, is she locked in to collecting no more than my PIA at FRA? Can she wait to switch over to mine at the time I would have turned 70, and collect the PIA and the additional amount from what I would have received at 70 (basically 24% more than PIA)? None of the "experts" cover this routine scenario. We'll be sure to grill the SS office when we make the visit in a few months when she considers starting her own benefit.
Assuming your spouse is at FRA or older when you die, she would get the amount you were eligible for at your age of death. In other words, assume you claimed the day before death, and she can take over that benefit as a survivor benefit.
If you die before she reaches FRA, her survivor benefit may be reduced.
In your example, she could continue her benefit or switch to your age 66 benefit. I'd assume the survivor benefit is bigger than her age 63 amount.
I took my spousal amount while waiting until 70 to just directly collect my own. I’ve been told this strategy no longer is available.
Soc security told me it is still available. That was 3 months ago?
That is correct. As part of the 2015 budget bill. Congress eliminated the loophole that made file and suspend possible..
@@coochalena2616
That person at SS gave you the wrong information. That option was eliminated in 2015 by a Congress budget bill.
Social security spousal benefits explain by former SS
Manager Part 1
th-cam.com/video/fKYQPTraB0A/w-d-xo.html
12:50 - $16,000 isn't half of $36,000.
1000.00 is not half of 3000.00 spouseal benifit forced to take it. They took my ssi disabled benifits. Never said I should have been put on disability. Geez
My Mom didn't get anything from my step dad. He was a ww2 vet, Baptist preacher, 15 yrs older than her. He died when she was 63. No life insurance for her. She worked until 70, got dementia, died 78. Struggled financially in memory care home.
I’m so sorry. That’s terrible.
Since the higher earner has to be drawing benefits to unlock the spousal benefit there is a real disincentive to delay draw until age 70 for the higher earner. It significantly changes the breakeven analysis on waiting until age 70 to claim. The breakeven analysis doesn’t build in foregone spousal benefits lost from FRA to age 70.
They don't have to wait until 70, just their own FRA (full retirement age) - often 65 for most people.
@@NYCisland Born in 1959, FRA is 66 and 10 months. Born in 1960 or later FRA is age 67
My wife was ssdi at 60 and is 65. I'm the breadwinner at 63. If I wait until 67 FRA,will she still get 50% spousal?
It depends on the difference. If your SS is larger divide by two. & greater than your wife she would get the higher highest rate.
Even if you claimed today, her spousal benefit would be based on your FRA benefit amount. You don’t have to wait until you are 67 unless you just want to.
Also, since she is 65, her spousal amount would be discounted for drawing earlier than her FRA.
Can the Spouse can take her benefit early and then switch to spousal benefit later?
So with my wife being on SSDI at 60 she would be penalized on her spousal benefit when I reach fra and she would be 69
I am 74, I retired at 62. My wife is 47. She has 10 years of SSA. When I die at, for example, what percent would she get at 62. I now make 2750/ month. Just a rough estimate please.
If I die at 80
Without knowing her income, unless she waits until her full retirement age (67) or whatever it will be, she wont get half. If she waits until the retirement age, she gets half of yours or takes her own, which ever is higher. The key to maximizing is not taking it early.
The comment below is not correct. If you die she gets survivor benefits which is more than spousal benefits. At your death and her retirement she could qualify for your full benefit.
I believe she gets 100% of the benefit you were getting, but it will be reduced a little if she collects early (she’d probably get about 82% of your benefit if she collects at 62). Alternatively, if she worked a little, she could collect her SS benefit at age 62 and switch to the survivor benefit at her FRA.
When you and your spouse are both on full retirement age. Can you claim spousal benefit now at age 67 then claim your own benefit at age 70? Will you get the step up benefit for waiting to claim your own benefit at age 70?
No. In order to claim spousal you would be required to take your own SS first. So, no increase.
Is it possible to claim spousal retirement benefits from divorced ex and at the same time collecting survivor's benefit from second marriage?
No. You only get 1...whichever is higher
NO, You get the higher of the 2 amounts.
No. Once you remarried you are not entitled to ex-spousal benefits anymore.
But your ex would still be entitled as long as s/he remains single.
You can get a divorce and get back on1st ex's claim.You can't get the higher amount if you are married to someone else with low SSI
No.
SSA say if you as married less than 10 years, your EX-Spouse do not get a penny.
My spouse is the higher earner but started claiming social security disability at age 58 so since he started earlier with disability pay will it ever be possible foe me to wait to full retirement age to be able to get half of his. No one seems to be able to answer this when disability pay is taken.