Spousal Social Security benefits are a financial boon to married couples, but they're more precarious than benefits a worker earns by paying Social Security taxes throughout their career. There are a number of moves that could cost you some or all of your spousal benefit. If any of the four things below happen to you, you'll need to draw up a new retirement income strategy quickly.
1. Divorcing too soon
Spousal benefits are only available to current spouses or exes who were married to a qualifying worker for at least 10 years. Divorcing sooner than this renders you ineligible for spousal benefits on your ex's work record. However, if you qualify for a Social Security benefit in your own right, you would still be able to claim it.
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A note for those who divorce after 10 years of marriage: You will be able to claim a spousal benefit on your ex's work record if this amount is larger than what you're entitled to based on your own work history. But if your ex isn't already claiming benefits, you must wait until you've been divorced for at least two years to apply.
2. Remarrying
Those claiming spousal benefits on their ex's work record will no longer be able to do so if they remarry. However, if their new spouse qualifies for Social Security and is already claiming, they may be able to get a different spousal benefit based on their new spouse's work record.
Unlike ex-spouses, current spouses don't have the option to sign up for Social Security until their partner does. So, if they aren't claiming yet, you will have to wait to get your spousal benefit.
3. Death of a spouse
The Social Security Administration only pays retirement benefits to qualifying workers and their family members. When the worker dies, their checks and any spousal benefits their partner was entitled to will stop coming as soon as the Social Security Administration becomes aware of the death.
However, the remaining family members will often be eligible for survivors benefits. This could be worth more than a spousal benefit because the maximum spousal benefit is 50% of the worker's primary insurance amount (PIA). But a widow(er) may qualify for a survivor's benefit of up to 100% of the worker's PIA.
4. Earning too much from a job
Spousal benefits are subject to the Social Security earnings test, just like workers' benefits. This test withholds money from the checks of those who earn too much from their jobs while under their full retirement age (FRA). This is 66 to 67 for today's workers.
In 2023, you lose $1 for every $2 you earn over $21,240 if you'll be under your FRA all year. And you lose $1 for every $3 you earn over $56,520 if you'll reach your FRA this year, assuming you cross that threshold before your birthday. In 2024, these limits rise to $22,320 and $59,520, respectively.
You don't forfeit all this money, though. When you reach your FRA, the government raises your benefit slightly to include the money it previously withheld.
The above situations aren't uncommon, and unfortunately, they're not all things you have control over. However, understanding how these changes will affect your Social Security benefit can help you develop a new financial plan going forward. If you have any questions about your spousal Social Security benefit, reach out to the Social Security Administration for clarification.
