Unlocking Higher Social Security Payments for Married Retirees
Married couples approaching retirement have unique opportunities to significantly increase their Social Security income through specific benefit programs that many are unaware of. Financial advisors warn that failing to claim these benefits can result in retirees leaving thousands of dollars unclaimed during their retirement years.
"Social Security gives you two doors, your benefit and your spouse's, and the great thing is that you get to walk through the better of the two," explained Jacob Sadler, a senior advisor at wealth management firm Curio Wealth. "Social Security looks at both spouses' earnings records and pays you the higher of the two amounts."
Three Critical Benefit Programs for Spouses
The Social Security Administration offers several spouse-focused programs that can dramatically increase monthly payments. According to financial advisor Nick St. George, owner of St. George Wealth Management, three options are particularly important for maximizing retirement income.
"I have seen individuals leave thousands, even tens of thousands of dollars on the table because they had no idea what they were eligible for," St. George told The Independent.
Spousal Benefits: Claiming Up to 50% More
Under the spousal benefit rule, a spouse can choose to receive the greater of their own benefit or up to 50 percent of their partner's full benefit payment. This calculation is based on the amount someone would receive at their full retirement age, typically between 66 and 67 years old.
"This can literally be a 30 percent to 100 percent increase in income that the individual would not have earned if their record was not reported," St. George emphasized.
Survivor Benefits: Early Access and Higher Percentages
Tailored specifically for widows and widowers, the survivor benefit allows a surviving spouse to receive between 71.5 percent and 100 percent of their deceased partner's benefit amount. The percentage increases when the surviving spouse delays claiming benefits.
Notably, surviving spouses can begin receiving payments as early as age 60, which is two years earlier than the standard early benefit period. However, remarrying before age 60 could potentially end this benefit.
"This is one of the largest income jumps a person may ever receive, but many people don't think about this one until something happens," Sadler noted in an email to The Independent.
Divorced Spousal Benefits: The Overlooked Option
Retirees who were married for at least ten years and have not remarried may qualify for benefits based on their ex-spouse's earnings record. Similar to regular spousal benefits, recipients can choose between their own monthly benefit or 50 percent of their ex-spouse's benefit.
"This one surprises people every time," St. George said about the divorced spousal benefit. Importantly, applying for this benefit does not require notifying the ex-spouse or reducing their benefit amount.
Essential Rules and Application Process
Several critical rules apply to all spouse-related Social Security benefits. First, a spouse can only claim these benefits if their partner has already started receiving Social Security payments. Second, recipients must proactively apply for these benefits, as the Social Security Administration does not automatically notify eligible individuals.
"Here's the part people don't love hearing: Social Security doesn't help you optimize this," St. George explained. "They will take your call and process the request if you reach out to them directly, but they don't come knocking on your door."
Potential recipients can apply for spouse-related benefits online, over the phone, or in person. Required documentation typically includes marriage or divorce certificates, birth certificates, and bank information. Surviving ex-spouses must schedule an appointment with the Social Security Administration to begin the application process.
When properly utilized, these benefit programs can transform modest Social Security checks into meaningful retirement income streams that provide greater financial security during retirement years.
