Earlier this summer, I wrote an article about the topic of when a person should start drawing their Social Security. I received several requests that I also write about what a spouse would receive from Social Security and the answer is, “it depends” based on a number of factors. In this article, I will walk you through some of these basic considerations addressing only the retirement benefits of the spouse. If a person dies with dependent children, that is a whole other topic; I only have a limited amount of information about that in this article.
In this article and in the materials written by the Social Security Administration (SSA), it can be confusing about who they are referring to as the spouse. So to help you know who is who, I am going to assume that John Doe is the spouse who made the most money and when this article is talking about the spouse or the worker with the larger earnings record, I will indicate it is John. Jane Doe is (or was, as the case may be) married to John Doe.
Basically the spouse (Jane) may draw the higher of the retirement benefit based on their own record or their spouse’s (John’s) record or even a spouse prior to John. Generally, drawing based on the spouse’s (John’s) record would yield them a retirement benefit equal to half of their spouse’s (John’s) retirement benefit. Any retirement benefits that Social Security pays to the spouse (Jane) does not decrease the retirement benefits of the other person (John). Furthermore, it may be that John may have more than one person whose retirement is based on his earnings and that does not diminish what any of them are entitled to, including John.
First fundamental principle, you (Jane) cannot receive retirement benefits based on your spouse (John) until your spouse files for retirement, if he is alive and you are still married. You may apply for and receive retirement benefits based on your own record starting as early as age 62.
Who Can Get Survivors Benefits Based on Your Work?
According to the Social Security Administration’s (SSA) site http://www.ssa.gov/pubs/EN-05-10084.pdf:
“Your widow or widower may be able to receive full benefits at full retirement age. The full retirement age for survivors is age 66 for people born in 1945-1956 and will gradually increase to age 67 for people born in 1962 or later. Reduced widow or widower benefits can be received as early as age 60. If your surviving spouse is disabled, benefits can begin as early as age 50.”
As to the broader topic of Benefits for other Family Members, in the Social Security Administration’s publication on Retirement Benefits, they tell us:
1. “Your widow or widower can receive benefits at any age if she or he takes care of your child who is receiving Social Security benefits and younger than age 16 or disabled.”
2. “Your unmarried children who are younger than age 18 (or up to age 19 if they are attending elementary or secondary school full time) also can receive benefits.”
3. “Your children can get benefits at any age if they were disabled before age 22 and remain disabled.”
4. “Under certain circumstances, benefits also can be paid to your stepchildren, grandchildren, step-grandchildren or adopted children.”
5. “Your dependent parents can receive benefits if they are age 62 or older. (For your parents to qualify as dependents, you would have had to provide at least one-half of their support.)”
For more information on widows, widowers and other survivors, visit www.socialsecurity.gov/survivorplan.
Now back to our basic question of what are a spouse’s benefits for SSA retirement. The SSA website tells us:
“A spouse (Jane) who has not worked or who has low earnings can be entitled toas much as one-half of the retired worker’s (John’s) full benefit. If you are eligible for both your own retirement benefits and for benefits as a spouse, we always pay your own benefits first. If your benefits as a spouse (Jane based on John’s earnings) are higher than your retirement benefits, you will get a combination of benefits equaling the higher spouse benefit.
“If you (Jane) have reached your full retirement age, and are eligible for a spouse’s (John’s) or ex-spouse’s benefit and your own retirement benefit, you may choose to receive only spouse’s benefits and continue accruing delayed retirement credits on your own Social Security record. You then may file for benefits later and receive a higher monthly benefit based on the effect of delayed retirement credits. If you are receiving a pension based on work where you did not pay Social Security taxes, your spouse’s benefit may be reduced.”
Can a spouse (Jane) begin to draw Social Security retirement benefits before they reach full retirement age?
Yes, but the amount of the benefit is reduced. The amount of the reduction depends on the combination of what their spouse’s (John’s) “full retirement age” is and the age they (Jane) wish to begin drawing. For example, if their spouse’s (John’s) full retirement age is 65 and the spouse elects to begin drawing retirement at age 62, they would get 37.5% of the worker’s unreduced benefit. Or if the spouse’s (John’s) full retirement age is 67, a spouse would get 32.5% of the worker’s (John’s) unreduced benefit at age 62.
What is the retirement benefits amount for the spouse (Jane) when their spouse (John) has a larger history of earning?
The following is taken from http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/175.
"A spouse (Jane) receives one-half of the retired worker's (John’s) full benefit unless the spouse (Jane) begins collecting benefits before full retirement age.
"If the spouse (Jane) begins collecting benefits before full retirement age, the amount of the spouse's benefit is reduced by a percentage based on the number of months before he/she reaches full retirement age.
For example, based on the full retirement age of 66 (for John), if a spouse (Jane) begins collecting benefits:
- At age 66, Jane would get 50% of John’s full retirement benefit;
- At age 65, the benefit amount that Jane would get is about 46 percent of the retired worker's full benefit;
- At age 64, Jane would get about 42%;
- At age 63, 37.5 percent; and
- At age 62, 35 percent.
"However, if a spouse (Jane) is taking care of a child who is either under age 16 or disabled and receives Social Security benefits, a spouse (Jane) will get full benefits, regardless of age.
"If you are eligible for both your own retirement benefit and for benefits as a spouse, we will always pay you benefits based on your record first. If your benefit as a spouse is higher than your retirement benefit, you will receive a combination of benefits equaling the higher spouse's benefits."
Can I (Jane) receive reduced retirement benefits at age 62 under my record then at full retirement age receive full spouce' benefits?
According to SSA’s website at http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/309/kw/spousal%20benefits.
"If you (Jane) choose to receive a reduced benefit before full retirement age on your own record, you are not entitled to the full spouse's (based on John’s earnings) benefit rate upon reaching full retirement age, and a reduced benefit rate is payable for as long as you remain entitled to spouse's benefits."
One concept that I find many people are unsure or unaware of is that they may be eligible to draw retirement benefits based on a former spouse. They may be entitled to retirement benefits based on the earnings record of a former spouse who is deceased or from whom they are divorced. First, I will explore the Survivors Benefits as discussed on the SSA website at: http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/395. In order to determine eligibility to draw based on a deceased spouse’s record, we have to know how long they were married.
"Generally, you (Jane) qualify for survivor’s benefits if you were married to your spouse (John) for at least nine months before the worker (John) died. If your spouse could not have been expected to live for nine months when you married, you do not qualify for benefits on your spouse's record.
"In some cases, however, you do not need to be married to your spouse for any specific length of time to get benefits.
"As you (John) plan for your family's protection if you die, you should consider the Social Security benefits that may be available if you are the survivor (Jane)--that is, the spouse or child--of a worker who dies. That person (John) must have worked long enough under Social Security to be eligible for retirement benefits.
"The number of credits needed to provide benefits for survivors depends on the worker's (John’s) age when he or she dies. The younger a person is, the fewer credits he or she must have for family members to receive survivor’s benefits. But no one needs more than 40 credits (10 years of work) to be eligible for any Social Security benefit.
"However, benefits can be paid to the worker's children and the surviving spouse who is caring for the children even if the worker doesn't have the required number of credits. They can get benefits if the worker has credit for one and one-half years of work (6 credits) in the three years just before his or her death."
Qualifying for Divorced Spouse Benefits
Am I entitled to any benefits for a divorced spouse?
This poses an interesting twist and the answer is yes, you may be entitled to benefits based on a divorced spouse. You can find the discussion of this on SSA’s web site at http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/299.
So we can keep the spouses straight in these discussions we introduce Sam, Jane’s ex-husband.
"A person (Jane) can receive benefits as a divorced spouse on a former spouse’s (Sam’s) Social Security record if he or she:
- Was married to the former spouse for at least 10 years;
- Is at least age 62 years old;
- Is unmarried; and
- Is not entitled to a higher Social Security benefit on his or her own record.
"The amount of benefits he or she gets has no effect on the amount of benefits you (Sam) or your current spouse (Sam’s next wife) can get. Also, if you (Sam) and your ex-spouse (Jane) have been divorced for at least two years and you and your ex-spouse are at least 62, he or she can get benefits even if you (Sam) are not retired.
"The former spouse (Jane) must be entitled to receive his or her own retirement or disability benefit. If the former spouse (Jane) is eligible for a benefit, but has not yet applied for it, the divorced spouse can still receive a benefit if he or she meets the eligibility requirements above and has been divorced from the former spouse for at least two years."
What if I Remarry?
Follow our example that Jane has remarried and is now married to John. Here is what the SSA’s rule is:
“Generally, we cannot pay benefits if the divorced spouse (Jane) remarries someone (John) other than the former spouse (Sam), unless the latter marriage ends (whether by death, divorce, or annulment), or the marriage is to a person entitled to certain types of Social Security auxiliary or survivor's benefits.
"A person can receive benefits as a surviving divorced spouse on the Social Security record of a former spouse who died fully insured, if he or she:
- Is at least age 60, or age 50 and disabled;
- Was married to the former spouse for at least 10 years; and
- Is not entitled to a higher Social Security benefit on his or her own record.
"If the surviving divorced spouse is age 60 or over applying for benefits remarried after age 60, or after age 50 and at the time of remarriage was entitled to disability benefits, we disregard the marriage. If a person is already entitled to benefits as an aged or disabled surviving divorced spouse and remarries, benefits continue regardless of the person's age at the time of remarriage.
"The benefits paid to a divorced spouse or a surviving divorced spouse will not affect the benefit amount paid to other family members who receive benefits on the same record.”
As you can see this portion of the question can become very complicated and may require a trip to the Social Security office to discuss the matter with them in person.
What Information Do You Need to Apply for Spouse's or Divorced Spouse's Benefits?
You can find this listing of what you need to have with you if you are planning to apply for retirement benefits based on a prior marriage. http://www.socialsecurity.gov/online/ssa-2.html
"Documents you may need to provide - We may ask you to provide documents to show that you are eligible, such as:
- Birth certificate or other proof of birth;
- Proof of U.S. citizenship or lawful alien status if you were not born in the United States
- U.S. military discharge paper(s) if you had military service before 1968;
- W-2 forms(s) and/or self-employment tax returns for last year.
- Final divorce decree, if applying as a divorced spouse; and
- Marriage certificate.
"Important - We accept photocopies of W-2 forms, self-employment tax returns or medical documents, but we must see the original of most other documents, such as your birth certificate. (We will return them to you.)
"Do not delay applying for benefits because you do not have all the documents. We will help you get them.
What if I am Eligible for Ex-Spouse Benefits Based on the Above Rules, but They are Deceased?
Again we go to the SSA’s website, http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/1811/kw/spousal%20benefits.
"You (Jane) can receive retirement benefits as a surviving divorced spouse (Sam) on the Social Security record of a deceased former spouse (Sam) who is fully insured. If you:
- Are at least age 60, or age 50 and disabled;
- Were married to the former spouse for at least 10 years;
- Are not entitled to a higher Social Security benefit on your own record; and
- Are unmarried, unless the following exception applies: You remarried after age 60; or after age 50 and at the time of re-marriage you were entitled to Social Security disability benefits.
If you believe this article and the prior article have covered everything you need to know or want to try figuring out what you are eligible to receive, the SSA has a Do It Yourself (DIY) tool at http://www.benefits.gov/ssa.
"If you are inclined to assess what you might be eligible to receive, SSA has a DIY tool called BEST (Benefit Eligibility Screening Tool). BEST helps you find out if you could get benefits that Social Security administers. Based on your answers to questions, this tool will list benefits for which you might be eligible and tell you more information about how to qualify and apply.
BEST is NOT an application for benefits and:
- does not know, or ask for, your name or Social Security number.
- does not access your personal Social Security records.
- will not give you an estimate of benefit amounts."
However, if you are approaching retirement age (you are within 3 months of age 62 or older) you can apply online at http://www.socialsecurity.gov/applyonline/.
Otherwise you may call the SSA national toll-free service at 1-800-772-1213 (TTY 1-800-325-0778) or visit your local Social Security office. An appointment is not required, but if you call ahead and schedule one, it may reduce the time you spend waiting to apply.
"You can help by being ready to provide any needed documents; and answer the questions listed below.
What we will ask you
- Your name, gender and Social Security number;
- Your name at birth (if different);
- Your date of birth and place of birth (State or foreign country);
- Whether a public or religious record was made of your birth before age 5;
- Your citizenship status;
- Whether you or anyone else has ever filed for Social Security benefits, Medicare or Supplemental Security Income on your behalf (if so, we will also ask for information on whose Social Security record you applied);
- Whether you have used any other Social Security number;
- Whether you became unable to work because of illnesses, injuries or conditions at any time within the past 14 months. If "Yes," we will also ask the date you became unable to work;
- Whether you were ever in the active military service before 1968 and, if so, the dates of service and whether you have ever been eligible to receive a monthly benefit from a military or Federal civilian agency;
- Whether you or your spouse have ever worked for the railroad industry;
- Whether you have earned Social Security credits under another country's social security system;
- Whether you qualified for or expect to receive a pension or annuity based on your own employment with the Federal government of the United States or one of its States or local subdivisions;
- Whether you are currently married and, if so, your spouse's name, date of birth (or age) and Social Security number (if known).
- The names, dates of birth (or age) and Social Security numbers (if known) of any former spouses;
- The dates and places of each of your marriages and, for marriages that have ended, how and when they ended;
- The names of any unmarried children under 18, 18-19 and in secondary school or disabled before age 22;
- The name(s) of your employer(s) and/or information about your self-employment and the amount of your earnings for this year, last year and next year;
- Whether we may contact your employers for wage information;
- The month you want your benefits to begin; and
- If you are within 3 months of age 65, whether you want to enroll in Medical Insurance (Part B of Medicare).
"Depending on the information you provide, we may need to ask other questions."
Final Note
This has become part two of a discussion about applying for Social Security benefits. So if you are reading this article and have not already read the first one, I recommend that you obtain that one at www.cpamagazine.com and read it too. Its focus is more on the merits of starting your retirement payment at age 62, 66 or 70. Those elements are applicable to a person regardless of how their maximum benefit is determined.
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