| By AMAC Foundation Social Security Advisor Russell Gloor Association of Mature American Citizens The Riddle: Why are my Spouse Benefits less than half? Probably the most common fallacy about SS spouse benefits is the belief that a spouse always gets 50% (half) of their marital partner’s monthly Social Security payment. And that is simply not the case. We try to address questions about Social Security spouse benefits diligently with individual answers to the specific questions we receive, and also through our weekly “Ask Rusty” articles published in national media. We’ve addressed these questions, too, in our weekly “Ask Rusty” podcasts, in the periodic public webinars and seminars we do, and in regular separate articles posted on two of our AMAC Foundation websites – www.SocialSecuityReport.org and www.AmacFoundation.org. In other words, we are quite proactive in our efforts to clarify the mystery of Social Security benefits for spouses. Nevertheless, the questions keep on coming. So, at risk of being repetitive, I’ll say it again – spouses do not always get half of their marital parter’s Social Security benefit. And that results in the mystery of why. The Mystery: Understanding the Basics To understand this mystery, we must first know that Social Security spouse benefits are always determined by comparing each partner’s “Primary Insurance Amount” (PIA). This is the retirement amount that each spouse is eligible for based on their individual lifetime work history and is the amount they will receive if they claim benefits to start at their own full retirement age (FRA)[2]. PIAs (FRA amounts) for both partners are compared and, if one spouse’s PIA is less than half (50%) of their partner’s PIA, then the difference between those two figures becomes a supplemental amount (e.g., a “spousal boost”) which can be added to the personal SS retirement amount of the spouse with the smaller PIA. But if the spouse benefit is claimed before FRA, the amount of the “spousal boost” is actuarially reduced (by a fraction of 1% per month early) and, when added to the spouse’s actual SS retirement amount, will result in a payment which is less than half of their partner’s monthly payment. With few exceptions, any Social Security benefit taken before the recipient’s FRA will be reduced. Even if the spouse claimed a reduced retirement benefit before FRA, or if their partner claimed SS retirement before or after FRA, the calculation still uses their individual PIAs (FRA amounts) to determine the amount of the spousal boost. If the spouse is not eligible for their own SS retirement benefit the spouse benefit will be based only on their partner’s FRA entitlement. To illustrate, a spouse whose FRA is 67 and who claims spouse benefits at age 62, will only get about 32.5% of their partner’s PIA, rather than 50%. And if the spouse’s marital partner waited beyond FRA to claim SS retirement benefits, the percentage of the partner’s monthly amount received by the spouse would be less than 50% of the partner’s SS amount (because the partner’s SS payment would be higher than their PIA due to Delayed Retirement Credits (DRCs). Hence, again, spouses do not always get half of their marital parter’s Social Security benefit. Only when a spouse claims SS at full retirement age will the spouse’s benefit be 50% of the partner’s FRA’ entitlement. The Enigma: When Should I Claim my Spouse Benefit? Considering all of this, many spouses face a puzzling decision: When is the best time to claim my spousal benefit? Well, though that is somewhat of an enigmatic question, here are some things which should help you decide: · If you are working but have not yet reached FRA, and your earnings will substantially exceed Social Security’s Annual Earnings Test limit ($24,480 for 2026 but the limit changes annually), then consider waiting longer to claim your spousal benefit. The AET would likely result in some (if not all) of your benefits being withheld. · If you’re not working (thus not subject to the AET) but urgently need the SS money, then claiming before FRA would be a prudent choice. You wouldn’t get the full spousal benefit (all SS benefits taken before FRA are reduced), but if you urgently need the SS money, then claiming early is a viable option. · If you have reason to believe your life expectancy will be short, then claiming before FRA is usually the right choice. Spouse benefits do not reach maximum until you reach your full retirement age but, if you will have a short life, claiming early will likely provide the most in lifetime benefits. FYI, the average life expectancy for those first eligible to claim Social Security is about 84 for a man and about 87 for a woman. · If it is probable that you will be entitled to a surviving spouse (widow(er)) benefit later, then taking the spouse benefit early is usually a smart choice. For example, if your marital partner is older or is in poor health, and there are high odds that you will be a surviving spouse, then claiming your spouse benefit early is usually the right decision. FYI, a surviving spouse receives the higher of two benefits – either their own SS retirement benefit, or the amount their deceased marital partner was receiving at death. In the final analysis, no one knows what lies ahead (the future is always a mystery) but an informed decision based on the above considerations should allow you to make the right personal choice, even if your spouse benefit comes out to be less than 50% of your partner’s amount. Of course, if you are still perplexed by this topic, the AMAC Foundation’s Social Security Advisory Service provides expert Social Security advice at no charge. This service is available via email to SSadvisor@amacfoundation.org, or by phone at 1.888.750.2622. This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at ssadvisor@amacfoundation.org. | 