Spousal benefits play a crucial role in retirement planning, offering financial support to married couples by allowing one spouse to receive a portion of the other’s Social Security benefits. For retired couples in 2025, understanding how spousal benefits work is more important than ever, given recent updates to retirement planning strategies and the evolving landscape of Social Security.
Here are four essential things couples should know about Social Security spousal benefits in 2025:
1. Spousal Benefits Are Based on the Higher-Earning Spouse’s Record
Spousal benefits allow a lower-earning or non-earning spouse to receive up to 50% of the higher-earning spouse’s full retirement age (FRA) benefit amount. This can be especially beneficial for couples where one spouse worked part-time, stayed home to raise children, or didn’t contribute to Social Security for other reasons.
- Full Retirement Age (FRA):
The percentage you receive depends on when you claim benefits. Claiming spousal benefits before reaching your FRA will result in a reduced amount, while waiting until your FRA ensures you receive the maximum possible spousal benefit. - No Impact on the Higher-Earning Spouse’s Benefit:
Claiming spousal benefits does not reduce the primary earner’s benefits, so both spouses can collect without penalties.
Key Update for 2025:
For couples born after 1960, the FRA is now 67, meaning claiming benefits before this age could result in a reduction of up to 30%. It’s crucial to understand these rules to maximize your total household benefit.
2. You Must Be Married for at Least 1 Year to Qualify
Eligibility for spousal benefits requires meeting specific criteria:
- Marital Duration: You must have been married for at least 12 months before filing for spousal benefits.
- Divorced Spouses: If divorced, you may still qualify for spousal benefits as long as the marriage lasted 10 years or more, and you are currently unmarried.
Additionally, the primary earner must already have claimed their Social Security benefits before the spousal benefits can be paid.
Key Update for 2025:
If you’re divorced and both you and your former spouse are eligible, you can claim benefits even if your ex-spouse has not yet filed for theirs—provided they meet the age requirement for eligibility (62 or older).
3. Delayed Retirement Credits Do Not Apply to Spousal Benefits
While delaying your own Social Security benefits past FRA results in delayed retirement credits (an 8% annual increase up to age 70), this rule does not apply to spousal benefits.
- Maximum Spousal Benefit: Spousal benefits are capped at 50% of the higher-earning spouse’s FRA benefit, regardless of whether the primary earner delays claiming until age 70.
Planning Tip for 2025:
If you’re considering delaying your claim to maximize benefits, note that spousal benefits will not increase beyond 50% of the higher earner’s FRA benefit. This distinction is essential when crafting your retirement strategy to ensure both spouses’ needs are met.
4. Working Can Reduce Spousal Benefits Before Full Retirement Age
If you claim spousal benefits before your FRA while continuing to work, the Earnings Test could temporarily reduce your payments. For 2025, the SSA has set the annual Earnings Limit at $21,240 for individuals below FRA.
- Exceeding the Limit: For every $2 earned above the limit, $1 will be withheld from your spousal benefits.
- Earnings in the Year You Reach FRA: The limit increases significantly (to $56,520 in 2025), and only $1 is withheld for every $3 earned above the threshold.
Key Update for 2025:
After reaching your FRA, there is no earnings limit, and your spousal benefits will no longer be reduced regardless of how much you earn.
Conclusion: Plan Ahead for Spousal Benefits in 2025
Spousal benefits are a critical component of Social Security, especially for couples looking to maximize their retirement income. Understanding the eligibility requirements, timing considerations, and how spousal benefits interact with personal earnings and delayed retirement credits can make a significant difference in your financial security.
By carefully planning when to claim benefits and coordinating with your spouse, you can make the most of what Social Security offers. Stay informed about updates and consult with a financial advisor to ensure you’re making the best decisions for your retirement.
FAQs
1. Can both spouses receive spousal benefits at the same time?
No, only one spouse can receive spousal benefits. The other must claim their own Social Security benefit unless their spousal benefit amount is higher.
2. Can I receive spousal benefits if I was married more than once?
Yes, as long as you were married for at least 10 years to each spouse, are currently unmarried, and meet the other eligibility requirements.
3. How does my spouse claiming benefits early affect my spousal benefit?
Your spousal benefit is based on your spouse’s FRA amount, not their reduced early benefit. However, your own decision to claim before FRA will reduce your spousal benefit.
4. What happens to spousal benefits if my spouse passes away?
Spousal benefits convert to survivor benefits, allowing you to receive 100% of your deceased spouse’s FRA benefit (or higher if they delayed claiming).
5. Can I switch from spousal benefits to my own benefit later?
If your own benefit amount is higher than your spousal benefit, you can switch at any time. However, this strategy is less effective after changes to Social Security laws in 2015.