The majority of adults over 65 primarily receive their income from Social Security benefits, according to the SSA. Thus, the degree to which retired employees and their spouses comprehend the program can have a significant impact on living conditions in later life.
Social Security Benefits; Source- AARP
Spousal Social Security Benefits
According to a recent Nationwide Retirement Institute survey, 44% of respondents were not aware that the surviving spouse would get larger Social Security benefits upon the death of the other spouse. The general term “Social Security old-age along with survivor benefits” has two subcategories: benefits for retired workers and benefits for spouses as well as other family members. There are several things they have in common. For example, in both situations, eligibility starts at age 62. However, married couples need to be aware of certain significant distinctions.
Social Security Benefits At FRA
Benefits for retired workers are contingent upon claiming age and lifetime income. The benefit an employee would receive if they were to claim Social Security at FRA is called PIA, and it is calculated by applying a formula to the inflation-adjusted income through the 35 highest-paid years of work. Less than completely of their PIA is awarded to workers who file claims before FRA, and more than 100% is awarded to workers who file claims after FRA. It never makes sense to seek delayed retirement credits after age 70 because they stop accruing at that point.
Social Security Claims
Benefits for spouses enable spouses to make Social Security claims using their partner’s work record, providing that the partner has previously made Social Security claims. What a spouse has the right to receive while their partner is still alive is referred to as “spousal benefits,” and it is determined by the partner’s annual earnings as well as the spouse’s age of claim. In particular, if the spouse files for Social Security at FRA, the spousal payment will be equivalent to half of the retiring partner’s PIA. Less than half of their retired partner’s PIA is awarded to spouses who file claims before to FRA. Nonetheless, there is no benefit to filing after FRA because spouses are not eligible to get delayed retirement credits.
Highest Social Security Benefits
Every spouse who works will automatically receive the highest benefit when filing for Social Security in cases when both spouses are entitled to retired-worker benefits on their record as well as spouse benefits on their partner’s record. In summary, married couples often receive two Social Security income streams. That may include receiving two benefits as a retired worker. It can also refer to one spouse benefit and one retired worker benefit in other situations. Either way, one of those sources of income vanishes with the death of one spouse. However, the bigger of the two awards can then usually be awarded to the surviving spouse as the survivor’s benefit.
