Social Security spousal benefits are alive and well, despite changes made by the federal government three years ago that eliminated some of the filing strategies available to married couples.
Filing for Social Security benefits can be complicated and confusing, according to those who study the changing rules. Changes made under the 2015 federal budget act did not help matters, when some filing strategies were eliminated.
However, spouses can still receive benefits based on the primary earner’s work history. The spouse must be 62 years of age and the primary earner must be receiving Social Security benefits, according to the Social Security Administration. The spouse is entitled to half of the amount the primary earner is receiving.
In general, both the primary earner and the spouse receive more money from Social Security the longer they wait to receive benefits. Social Security benefits grow each month that the recipient delays taking the benefits. A person waiting until the maximum age of 70 to claim benefits will receive approximately 8 percent more for each year he or she delays payments after the age of 62.
Under the changes that were made in 2015, spouses are considered to have taken their own benefits if they apply for spousal benefits and the spouse’s benefits will not increase each year, according to the Social Security Administration. Divorce and survivor benefits are treated differently.
Before the budget act changed the rules, a person could file for benefits and then suspend the application. The spouse could then receive spousal benefits while the primary earner’s benefits increased each month he or she delayed taking the benefits. This option, known as file and suspend, is no longer available.
A similar strategy, called filing a restricted application, also was eliminated. Under this option, beneficiaries filed an application for benefits, but instead of collecting their own, they collected spousal benefits and let their own benefits grow.
Numerous calculators to determine the best filing strategy are available on the internet, including one provided by the Social Security Administration at www.SSA.Gov.