Your retirement benefit? No. Each spouse can claim their own retirement benefit based solely on their individual earnings history. You can both collect your full amounts at the same time.
However, your spouse’s earnings could affect the overall amount you get from Social Security if you receive spousal benefits. These are Social Security payments you can collect on the basis of your husband’s or wife’s earnings record.
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The maximum spousal benefit is 50 percent of your mate’s primary insurance amount, the retirement benefit to which he or she is entitled at full retirement age, based on his or her earnings history. (To get 50 percent, the person claiming spousal benefits must have reached full retirement age, which is 66 and 6 months for someone born in 1957 and gradually rising to 67 over the next few years.)
Under Social Security’s “deemed filing” rule, people who are married are required to file for a spousal benefit at the same time as they file for their retirement benefit — when you claim one, you are deemed to be claiming the other. Social Security will pay you the bigger of the two amounts (never both combined). If the spousal benefit is larger than your retirement benefit, by virtue of your spouse earning considerably more than you during your working lives, you will receive the amount of the spousal benefit.
Say you and your mate both claimed Social Security at full retirement age. Based on your respective earnings records, your retirement benefit is $1,200 a month and your spouse’s is $2,000. Your spousal benefit would be $1,000 — half of your spouse’s benefit — so Social Security will, in effect, ignore it and pay your higher retirement benefit of $1,200.
But suppose your retirement benefit is only $900 a month. In this case, you’ll get $1,000 from Social Security, the equivalent of the spousal benefit. Technically, Social Security considers itself to be paying the $900 retirement benefit on your work record and topping it up with $100 on your spouse’s record — but practically speaking, you’re getting the spousal benefit.
Keep in mind
- Deemed filing covers only the combination of retirement and spousal benefits. It does not apply to the survivor benefits widows and widowers can receive, nor to disability benefits.
- Spousal benefits are not affected by whether your mate claimed Social Security before or after full retirement age. Spousal benefits will always be based on your mate’s primary insurance amount and your own age when you claim them.
- Spousal benefits are affected by Social Security's earnings limit. If you, or the spouse on whose record you receive benefits, are under full retirement age and still working, your monthly payments could be temporarily reduced, depending on how much you or your mate earn.
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Now, let's delve into the concepts mentioned in the article and break down the key points:
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Individual Retirement Benefits:
- Each spouse can claim their own retirement benefit based on their individual earnings history.
- Both spouses can collect their full retirement amounts simultaneously.
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Spousal Benefits:
- Spousal benefits are Social Security payments that one can collect based on their spouse's earnings record.
- The maximum spousal benefit is 50 percent of the mate's primary insurance amount, which is the retirement benefit they are entitled to at full retirement age.
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Deemed Filing Rule:
- Married individuals are required to file for a spousal benefit at the same time as filing for their retirement benefit.
- Social Security will pay the individual the larger of the two benefits, not both combined.
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Example of Deemed Filing:
- If the spousal benefit is larger than the individual's retirement benefit, the individual will receive the amount of the spousal benefit.
- Full retirement age is a crucial factor in determining the spousal benefit amount (e.g., 66 and 6 months for someone born in 1957, gradually rising to 67).
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Impact on Spousal Benefits:
- Spousal benefits are not affected by whether the mate claimed Social Security before or after full retirement age.
- Spousal benefits are influenced by Social Security's earnings limit, and if either spouse is under full retirement age and still working, monthly payments could be temporarily reduced based on earnings.
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Limitation of Deemed Filing:
- Deemed filing applies only to the combination of retirement and spousal benefits.
- It does not apply to survivor benefits for widows and widowers or disability benefits.
Understanding these concepts is essential for making informed decisions about when and how to claim Social Security benefits. If you have further questions or need personalized advice, don't hesitate to reach out for guidance tailored to your unique financial situation.
