Generally, you're able to qualify for Social Security benefits by working and paying into the program throughout your career. But that's not the only way to get hooked up with benefits throughout your retirement.
If you're not entitled to Social Security based on your personal earnings record, you may be eligible for spousal benefits if you're married to someone who's eligible for Social Security. You can also collect spousal benefits as a divorcee in some situations.
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It's important to know how Social Security's spousal benefits work so that you can make the most of them. Here are some key rules to follow.
1. If you're married, you can't file until your spouse claims Social Security
If you're someone who's divorced, you don't need to wait for your ex to claim Social Security for you to file for spousal benefits. But the rules are different if you're married. In that case, you do have to wait for your spouse to put in their claim, and only then can you sign up.
That's why it's important to talk to your spouse about when to file for Social Security. They may be looking to delay their claim for a larger monthly benefit. But if that prevents you from getting money, they may change their tune.
2. If you file early, your spousal benefit will be reduced
When you're claiming Social Security based on your own earnings record, the earliest age to file is 62. And the same holds true for spousal benefits.
But there's a penalty for claiming Social Security before full retirement age that applies to regular benefits and spousal benefits alike. For each month you sign up prior to full retirement age, your monthly benefit gets permanently reduced.
Full retirement age is 67 for anyone born in 1960 or later. If you were born earlier, it's either 66 or 66 and a certain number of months. Make sure you know what that age looks like for you so you don't accidentally sign up for Social Security at the wrong time.
3. If you delay your claim, your spousal benefit won't increase
If you're claiming Social Security based on your own earnings history, there's an upside to delaying your filing past full retirement age. For each year you do, up until age 70, your monthly benefit gets an 8% boost. That could leave you with a much larger monthly paycheck for life. And it's also a great way to make up for a nest egg you're not so happy with.
But there's no financial incentive to delay a spousal benefit claim past full retirement age. With spousal benefits, if you file at full retirement age, the most you can get is 50% of the monthly benefit your spouse is entitled to. But otherwise, your benefit can only shrink with an early filing -- it can't increase, even if you're willing to be patient and wait.
Social Security is a complex program, and the rules of spousal benefits have the potential to be a bit confusing. Take the time to read up on how these benefits work so that you're able to make the most of them.
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