| When most people think about Social Security, | | | | Therefore, spouses applying for the spousal |
| they naturally think of retirement benefits. | | | | benefit should do so as soon as they reach full |
| However about 1/5 of all Social Security benefits | | | | retirement age. |
| are spousal or survivor benefits, so when you're | | | | How Early Retirement Affects The Spouse |
| planning for retirement, it's important to consider | | | | Benefit: |
| the fact that you or your spouse may collect | | | | Spouses who apply for the spousal benefit before |
| spousal or survivor benefits at some point in their | | | | she is full retirement age will receive a reduced |
| life. | | | | benefit just like she would if she applied for her |
| In this article, we are going to discuss the basics | | | | own Social Security benefit before full retirement |
| of Social Security spousal benefits. | | | | age. This reduced benefit is permanent, even if |
| Basically, a married person can receive a spousal | | | | she takes her spousal benefit at age 62 and |
| benefit equal to half of her husband's basic | | | | switches to her own benefit at full retirement age. |
| benefit, also called the PIA (primary insurance | | | | Other Considerations: |
| amount). | | | | Individuals who start collecting retirement benefits |
| Spousal benefits usually come into play when one | | | | before full retirement age can only earn up to a |
| spouse takes time away from work to raise a | | | | certain amount before they have to pay back |
| family, and therefore has little or no earnings. | | | | part or all of their Social Security benefits. In |
| Calculating the Spousal Benefit: | | | | 2009, that amount is $14,160. If you earn more |
| The spousal benefit is actually a combination of | | | | than $14,160, you have to pay back $1 for every |
| both spouses' benefits. If a married person has | | | | $2 you earned over the limit. |
| enough credits to qualify for Social Security on | | | | This earnings test applies to spousal and survivor |
| her own, then her credit will be calculated first. If | | | | benefits as well as retirement benefits, so if you |
| it's less than her spouse's benefit, she will receive | | | | expect to work before you reach full retirement |
| her benefit plus an adjustment to equal half of | | | | age, you should delay your retirement and spousal |
| her husband's primary benefit. | | | | benefits. |
| When Should You Start the Spousal Benefit: | | | | In this article, I have referred to the wife as the |
| You can apply for the spousal benefit as early as | | | | lower earning spouse out of simplicity. However, in |
| age 62, as long as the working or higher earning | | | | today's world, it's not uncommon for the wife to |
| spouse is eligible and has applied for benefits. | | | | be the higher earning spouse. The good news is |
| It does no good for the lower earning spouse to | | | | that Social Security is gender neutral, so the Social |
| wait beyond her full retirement age to apply for | | | | Security spouse benefits can apply to the wife or |
| spousal benefits because the spousal benefit will | | | | husband, as well as the higher or lower earning |
| not earn credits beyond the full retirement age. | | | | spouse. |