Spousal Benefits: What Couples Often Miss

When couples think about Social Security, it's easy to focus on each person's individual retirement benefit. But married couples may also have access to spousal benefits, and understanding how those benefits work can be an important part of looking at Social Security as a household.

Spousal Benefits Are Based on a Worker's Record

A spouse may qualify for Social Security retirement benefits based on their spouse's work record. This can be particularly relevant when one spouse has significantly higher lifetime earnings or when one spouse has little or no work history covered by Social Security.

Eligibility depends on Social Security's rules, including factors such as marital status, age, and whether the worker is receiving benefits.

Your Own Benefit Comes Into the Calculation

One detail couples sometimes overlook is that a spousal benefit isn't simply a full additional benefit added to the other spouse's Social Security check. If someone qualifies for both their own retirement benefit and a spousal benefit, Social Security generally pays their own benefit first and then provides an additional amount if the spousal benefit would be higher.

The amount can also be affected by when the spouse claims. A spouse who claims before reaching full retirement age may receive a reduced benefit.

Survivor Benefits Are Different

Spousal benefits and survivor benefits aren't the same thing. If one spouse dies, the surviving spouse may qualify for survivor benefits based on the deceased spouse's record. The amount and eligibility depend on Social Security's rules and circumstances surrounding the survivor's claim.

Because of this, couples shouldn't necessarily look at Social Security only as a month-to-month retirement income decision. 

It's also worth considering how the strategy could affect the surviving spouse.