social security spousal benefits

Dear Liz: My wife and I have been married for 18 months. I am 67, she is 66. She is not eligible to receive Social Security due to her work history. Is she eligible to receive spousal benefits now, even though I plan to wait until age 70 to receive mine?

Answer: Your wife can’t start spousal benefits until you begin receiving your own benefit. In the past, someone in your position could file a Social Security application and then immediately suspend it. That triggered the spousal benefit while allowing the primary earner’s benefit to continue growing. Congress changed those rules in 2015, however.

Dear Liz: My husband recently died. Since he and I received essentially the same amount from Social Security, I will not receive any additional money. Can you explain this? Social Security could not when I both called and went to the local office. I have not seen this addressed in your column. I would think this would be a problem for many spouses.

Answer: The issue of survivor benefits has been addressed frequently in this column, but unfortunately many people still don’t understand that their benefits will drop, sometimes precipitously, when their spouse dies.

When one member of a married couple dies, one of their two Social Security checks goes away and the survivor gets the larger of the two benefits. If your husband’s check had been larger than yours, that amount would become your survivor benefit. If your benefit was the larger of the two, you would continue getting that amount.

Many people don’t consider the impact their claiming decisions will have on their surviving spouse, which is unfortunate since the survivor could live years or even decades on this reduced income. Couples often can maximize their benefits and lessen the severity of this drop in income by making sure the higher earner delays their Social Security application as long as possible, ideally until it maxes out at age 70.

Dear Liz: At what age do Social Security benefits stop for dependents? My child is 17 and is currently getting half of my Social Security amount. When her benefits stop, can I sign up my nonworking spouse to receive half of my benefits?

Answer: A minor child can receive up to half of a retirement-aged parent’s Social Security benefit. Child benefits typically end when the child turns 18, or up to 19 if the child is still a full-time high school student. If your child turns 18 during her senior year, for example, the benefits would stop when she graduates. If she turned 19 during her senior year, the benefits would end then.

Spousal benefits can begin as early as age 62, but the amount would be permanently reduced if started before the spouse’s full retirement age (which is 67 for people born in 1960 and later). Technically a spouse does not have to wait until child benefits stop before applying, but there is a limit to the total amount a family can receive based on one person’s work record. The amount varies from 150% to 180% of the worker’s full retirement benefit.

Dear Liz: My wife and I are both 66 and have not yet filed for Social Security. I don’t plan on filing until I am 70. Is my wife able to file for her own retirement benefit now, which is much lower than mine? And then when I file at 70 years, can she switch to the spousal benefit rate, without any type of penalty?

Answer: Yes and yes. This is one of the few instances in which people can still switch from one benefit to the other.

If you had already applied, your wife’s retirement benefit would be compared to her spousal benefit and she would get the larger of the two amounts. Since you haven’t applied, however, no spousal benefit is available. Your wife could receive her own benefit and then switch to the larger spousal amount once you apply at 70, when your own benefit has maxed out.

Also, as long as your wife has reached her full retirement age (66 years and two months, if she was born in 1955), she won’t face the earnings test if she continues to work. That test otherwise reduces benefits by $1 for each $2 earned over a certain amount, which in 2021 is $18,960.

Dear Liz: I am currently receiving a spousal benefit from Social Security that’s equal to 50% of my husband’s benefit. My husband and I applied when we were 66 years old in 2015. I do not think my own benefit will be higher than the spousal benefit I am currently receiving when I turn 70 later this year.

But I was told by an agent over the phone that I am still required to file for my own benefit at age 70, and she set me up with a phone appointment. Is this true?

If I do apply and my benefit comes out less than the spousal benefit I have been receiving, will that amount be adjusted so that I can still receive the full 50% of my husband’s benefit? Or will I end up with a smaller amount just for applying?

I can’t see why I should “rock the boat” if I might get benefits taken away. I was just curious when I called in to see if they could figure it over the phone for me to see if I would benefit from the change, but instead I had to set up the appointment.

Answer: You won’t end up with a smaller amount. You’ll either continue with your current benefit or get an increase.

If you didn’t file a restricted application four years ago, then you’re already receiving your own benefit, plus an additional amount so that your checks equal 50% of your husband’s. If that’s the case, there’s no reason to do anything further and your benefits will continue as they are now.

But the phone rep’s insistence that you needed the appointment could mean that you filed what’s known as a “restricted application for spousal benefits only.” That form allowed people born before Jan. 2, 1954, to receive only a spousal benefit while their own benefits continued to grow.

Retirement benefits can increase 8% each year they’re delayed after full retirement age (which for you was 66) and 70, when benefits max out. If your benefit has been growing and is now larger than your current benefit, you’ll get the increase, so it’s certainly worth checking.