Spouse’s Early Retirement May Lower Other Spouse’s Social Security Benefits
Traditionally, about 50% of people eligible to collect Social Security at 62 do so. But if you do, you’ll receive about 25% less income (i.e. Social Security benefits) than waiting until your full retirement age – between 65 and 67 depending on your birthday. What implication does your early retirement have on your spouse?
Everyone whose work earnings make him or her eligible for Social Security benefits (i.e. income) receives his full Social Security benefit when he reaches his full retirement age (FRA). You can retire as early as 62 but your benefits will be permanently reduced by about 25% from the full benefits you’d get at your FRA. Waiting longer than your FRA to begin receiving Social Security benefits increases your benefits. Waiting to age 70, will increase them by about 32%.
A spouse (i.e. a married person) always has the option of taking the larger of her own working benefit or a ‘marriage entitlement’ benefit that’s based on the benefit her husband collects (assuming the husband was the higher earner in this example).
A spouse’s benefits while husband is alive
Since men generally have worked and earned more, it’s their wives that are in the position of collecting the larger of their own working Social Security benefits or their social security spouse’s benefit.
A wife’s spousal benefit can be as high as 50% of her husband’s full retirement benefit. To receive this, she must wait for her own FRA and he must do the same.
If he retires early, but she waits for her FRA, she still get 50% of her husband’s benefit – but his is less because his benefit is reduce due to his early retirement. If he retired at 62, his benefit would be reduced by about 25% from his FRA benefit.
If she retires early at 62, and he waits for his FRA, her spousal benefit will be a reduced about 30% below whatever her 50% spousal benefit would have been.
A surviving spouse’s benefit
A surviving spouse is entitled to the greater of 100% of the deceased spouse’s social security benefits or his/her own working benefit. As stated above, this option is more typical for a surviving wife to make.
Here, the wife’s 100% of her husband’s benefit is affected by what he actually received. So if he retired early, then her 100% benefit will be smaller to the same extent that his benefit was reduced for early retirement. Her 100% benefit would increase if he delays his retirement to age 70.
So a married man’s decision when to collect Social Security has direct implications not only on how much he’ll receive in Social Security benefits, but how much his wife and survivor will receive. But remember, there’s more to life than financial gain, men don’t live as long as women; they deserve some decent retirement time too.
Listen to this post
February 3rd, 2009 at 8:29 am
[...] Social Security Spouses Benefit Blog Recommendations to increase retirement income [...]
February 9th, 2009 at 6:48 pm
While a lot of people would wait until 67-70 years to increase their payments by up to 32% - unfortunately this is just not possible for many seniors. Consider the difficulty in finding/keeping employment at that age, in today climate, also the fact that many people approaching this age are physically unable to work in many areas.
March 21st, 2009 at 7:22 pm
You should have listed if the man retires at 65 and woman is under that age does she get full amount she noramly would when he dies. If she does not have social security does it effect what she gets paid.
Best etf funds lits last blog post..Gold double long etf.
March 30th, 2009 at 1:03 pm
The Social Security Administration website at http://search.ssa.gov/search?q=what+every+woman+should+know&btnG=GO&output=xml_no_dtd&sort=date%3AD%3AL%3Ad1&ie=UTF-8&client=default_frontend&oe=UTF-8&proxystylesheet=default_frontend&proxyreload=1 has several booklets about “What Every Woman Should Know” about Social Security.
These booklets, while aimed at women, are basically for spouses, so if you are a man who will be drawing your social security off of your wife’s income, then they would apply to you, also.
A must read for everyone.
You have a very informative blog!
March 31st, 2009 at 7:21 am
The Social Security Administration has a booklet titled, What Every Woman Should Know.
Although the title says it is for women, it is really for spouses, as it will apply to the man if he is drawing social security based on his wife’s wages.
April 21st, 2009 at 12:41 am
This is good Information you provide. and giving the right path to retired people.
May 16th, 2009 at 8:07 pm
What are the widow benefits for a widow under 65 with no children? Is it affected by her husbands earnings?
June 20th, 2009 at 3:05 am
Getting full Social security benefit seems great. But waiting around 8 years seems waiting time. At the same time it is hark to work at the old ages for advance in age. I don’t think i can wait 70 years and it may be difficult for me.
June 20th, 2009 at 4:18 pm
Good article. Not many people think about how much money they looseif they retire early. Not only does it effect the man it can also make a difference on the wifes retirement when he dies.
June 22nd, 2009 at 9:55 am
I am currently 56 years of age. My wife is 60 years of age. She doesn’t have enough SS credits on her own to receive her own benefit. I am thinking that at 62 applying for SS and have my wife apply for her spousal benefit. She would be 66 years and four months at that time. Then suspend my benefit before my first check. I am a high wage earner and my wife has spent her time as a housewife raising our children. This strategy looks like how we can maximize our total benefit. I want to work to at least to 63 1/2 and maybe take my benefit at 64 years of age. I may even work a few years longer after I retire from my present job. The freedom to work act of 2000 is doing its job. Without that it doesn’t make sense for me to work longer and I work in a field that has sever shortages of qualified workers.
July 19th, 2009 at 7:44 am
Very good information. I never thought about how it effects my retirement when my husband retires. I think i can choose wich one will be more income so it does not apply to me in this case but i know people it does.
July 21st, 2009 at 2:57 pm
I would be surprised if in the future we even have social security seeing how the government that is currently in control may take that all away and give it to the indigent who do not work.
July 27th, 2009 at 8:28 am
I am currently a 52 yr old widow my husband would be 56 now, my question is at who’s retirement age do I file for his retirement? My age or his age? How do I know when or who’s to file for Social Security retirement.
August 20th, 2009 at 1:07 am
Great article. Thank a lot for the information. Retirement finance is a really good thing. At times people have no clue about it. Thanks for the information. Cheers
August 21st, 2009 at 6:24 pm
Good article. Not many people think about how much money they loose if they retire early. And I never thought about how it effects my retirement when my husband retires. your article got me thinking. thanks a bunch. I need to start working on something for our future. Thanks
August 23rd, 2009 at 5:33 am
Such informative articles… this I never knew “A surviving spouse is entitled to the greater of 100% of the deceased spouse’s social security benefits or his/her own working benefit.” My Dad’s partner has just passed away and I am sure that nobody has bothered to check any social security benefits.
September 7th, 2009 at 6:38 pm
My wife is 64 and is getting her SS. I’m 63 7 haven’t filed yet for mine. Can I file for 1/2 of her value & then later file for my own? I know when I file for my own I’d loose the 1/2 I would be getting of her SS. Please help.
September 13th, 2009 at 12:11 am
Awesome article. Not many people think about how much money they loose if they retire early. Which I think is a really bad thing in personal planning.
September 26th, 2009 at 12:28 pm
Waiting to receive full benifits from social security is the best option, but for people forced by circumstances to take early retirement it is not always possible. It is really important for people to understand that by waiting they would be much better off. Unfortunately with the economy in such a slump, more and more seniors are being forced into early retirement. Knowing what penalties they face when they can’t wait for full retirement is crucial for them to be aware of.
October 22nd, 2009 at 6:28 am
I would be surprised if in the future we even have social security seeing how the government that is currently in control may take that all away and give it to the indigent who do not work..
December 2nd, 2009 at 11:30 am
I actually knew about the spouse right to take over deceased spouse pension. However I came to know about this by a coincidence, because my friend stumbled upon a letter from the pension of her deceased husband. She never knew about this possibility. Everyone should know. Thanks for posting!
December 21st, 2009 at 11:35 am
Some people stop working before age 62. But if they do, the years with no earnings will probably mean a lower Social Security benefit when they retire.
BTW, good article.
December 28th, 2009 at 1:50 am
Thank a lot for the information. Retirement finance is a really good thing. At times people have no clue about it. Thanks for the information.
December 28th, 2009 at 10:35 pm
Not many people think about how much money they loose if they retire early. Which I think is a really bad thing in personal planning.
December 30th, 2009 at 12:03 pm
Thanks for the explanation. I would love to retire sooner rather than later, but dread the thought of not receiving all the benefits if I wait to retire at my FRA. As of now, I am saving and investing as much as I can so if I do retire early, or if employer strongly offers an early retirement package, I have something else to pick up the slack.
January 18th, 2010 at 11:20 am
Is it true that an ex-wife can collect on her ex-husband’s Social Security benefits at age 62 and then collect on her own for the full amount at 65?
January 29th, 2010 at 4:18 pm
It makes sense to encourage potential retirees to work longer and reward them for doing so by increasing the pension.
I see the government increasing age limit to encourage the older workers to stay in the workforce and to reduce dependence on pensions to ease the burden on the governments coffers.
February 26th, 2010 at 3:23 am
This is good Information you provide. and giving the right path to retired people.
March 5th, 2010 at 7:05 pm
What is it that one can sign that prevents you from drawing any money from
x-spouse’s retirement?
March 6th, 2010 at 7:48 pm
Thanks for the information. I have advised my parents, who are just over 60, to take a later retirement.
March 21st, 2010 at 8:39 pm
But isn’t it a little bit difficult to find a perfect point for both parties’ retirement?
March 26th, 2010 at 2:32 pm
Good article. I don’t see there are not many people who will think about how much money they will loose if they retire early. Not only does it affect the husband it can also make a difference on the wife’s retirement when he dies eventually. And what about all the property and assets that should go to the spouse?
May 11th, 2010 at 11:58 pm
Good writing. Thanks a lot of information. Retirement is a very good thing. Sometimes people do not know this thing. Thank you for the information. cheers
May 14th, 2010 at 3:44 pm
I know too many people that just couldn’t wait it out until they hit 65 and it hurt them financially. 65 sure seems like an old age to work until… plan better for retirement is the key. Great post!
May 22nd, 2010 at 7:19 am
Information you provide. and giving the right path to retired people..
May 23rd, 2010 at 2:02 am
Awesome article. Not many people think about how much money they loose if they retire early. Which I think is a really bad thing in personal planning.
June 4th, 2010 at 12:46 am
very informative post and indeed its important to plan out the retirement well
@ Super Managed Saver - nice point that you mentioned
June 4th, 2010 at 1:57 am
It’s good to see all the facts summarised in one place. Most people don’t realise what they have to lose retiring a few yrs early.
June 8th, 2010 at 6:17 am
I do not see a lot of people no one to think how much money they will lose, if they retire early. It not only can it affect the husband to his wife’s retirement, the difference when he finally died. That all property and assets should go to the spouse?
June 9th, 2010 at 5:38 am
i really agree with this article. we can see the other sight about retire early. yes, we have to have a plan for life. whatever it takes.
June 9th, 2010 at 12:54 pm
I’m glad someone is writing about stuff like this. Its absolutely true and yet, who knew?? I have a family friend that is undergoing this dilemma right now. None of us had any idea of the negative effects of an early retirement.
June 14th, 2010 at 12:32 am
We find here a real precise information about retirement in a time where that topic is not clearly to be debated among young who have many reasons not to feel concerned even in there more discussed famlily life as divorce rated is increasing and people do not mary anymore.
June 28th, 2010 at 4:18 am
If I collect $1000 a month and my wife retires early and gets 42%, or $420 a month; does she get $840 a month or $1000 a month when I die? This is assuming she is at full retirement age when I die.
July 2nd, 2010 at 2:48 am
Thanks for such an informative post. I do not think many citizens are aware of such social security policies. Although i would consider it unfair for people to not receive their entire due of social security after retirement. Why would you want citizens to stretch their work life for the sake of security. It can be given to them at a reasonable age with the promised amount.
July 3rd, 2010 at 12:35 am
I never took the subject very seriously up until last year when my husbands mother got retired at 62 and received her SSI.
Thanks for great article, as you can see I am browsing online to find out more about this.
Betty
July 10th, 2010 at 5:29 am
good information! thank!
this is another reason why I don’t rely much of government benefits. I got other insurance and retirement plans with private company. With this I am hoping to still can live the life want even after retirement.
July 13th, 2010 at 9:13 am
Both husband and wife should retire together and as late as possible to receive the maximum monthly Social Security checks. The same goes for corporate pensions too. The real retirement financial horror story of 2010 and the years to come, is plummeting home values! Go to zillow.com and see what your home is currently worth. Warning you may get sick!
I strongly suggest to my retirement age clients “Sell Your House Now”
Put the money in the bank, move to a local retirement community and buy a small home or condo, then just keep working at your jobs. The big myth is that you should retire at 65 and move to Florida. But by selling your McMansion now and moving to a local retirement home, you will not only get the most cash from your home that you will ever see, you can still keep your jobs, and as a bonus unlike retiring in Florida, you can still be close to your children and grandchildren.
July 28th, 2010 at 5:44 am
There really is a retirement income. Wherein employees who retire will have benefits like money that can be used for their needs especially when they are getting old.
July 29th, 2010 at 8:32 am
Hi. This is my first visit to your blog, but I was really impressed with your ideas on the retirement. you put forward a good point, so I decided to advise my parents to take a later retirement. it might be more wiser. Thanks, and I’ll definitely be back !
August 4th, 2010 at 7:02 pm
Well, there won’t be any money left in social security since the government is just spending it all.
Are there posts you’ve made about that issue?
August 9th, 2010 at 4:12 am
Visualizing the retirement life is essential to plan for it……whether you work or not, you should have some savings for sure
August 15th, 2010 at 7:14 am
great post,I agree with the way of invest for retirement. It’s a great idea. Maybe everyone has a different opinion for the best sector of investment, but i agree with the idea not to look at the direction of the market to influence the decision.
August 18th, 2010 at 12:35 am
Some jobs are being outsourced and many are being given to foreign nations via the H1B and L1 visa programs . Eligible guest worker and training program dependents can work in even unskilled positions. The practical training programs available to international students (OPT and CPT) allow companies to employ someone without paying Social Security and Medicare taxes.Between the illegals and the guest workers there are millions of jobs that could be available for citizens if these programs were terminated and illegals were suddenly unemployed by workplace enforcement.When will our government put the US people before politics?
August 19th, 2010 at 12:53 am
Good and well written article. Never trust the government to provide for you when your pension is due - keep saving money to top of any payment you are likely to receive. I
August 20th, 2010 at 3:15 am
Its surprising and alerting to know that a spouse’s early retirement may lower other spouse’s social security benefits! Can I do some future finance planning?
August 25th, 2010 at 2:14 pm
I agree, full Social security benefit sounds great. But I do not want to wait so much time…