Do social security spousal benefits increase after full retirement age? This is a common question among married individuals who are approaching retirement age. Understanding how spousal benefits work and whether they increase after reaching full retirement age is crucial for making informed decisions about retirement planning and financial security.
Social security spousal benefits are designed to provide financial support to individuals who have not worked or have not accumulated enough work credits to qualify for their own social security benefits. These benefits are based on the earnings record of the spouse who has worked and paid into the social security system. When it comes to the question of whether these benefits increase after full retirement age, the answer is yes, in certain circumstances.
Full Retirement Age (FRA)
The first thing to understand is that full retirement age (FRA) varies depending on the year of birth. For individuals born between 1943 and 1954, the FRA is 66. For those born in 1955 or later, the FRA gradually increases until it reaches 67 for those born in 1960 or later. It is important to note that individuals can start receiving spousal benefits as early as age 62, but doing so will result in a reduced benefit amount.
Spousal Benefits and Full Retirement Age
After reaching full retirement age, spousal benefits can increase in two ways:
1.
Delaying Benefits
If a spouse chooses to delay receiving their spousal benefits until after reaching full retirement age, the monthly benefit amount will increase. This increase is known as a delayed retirement credit and is calculated as a percentage of the monthly benefit amount. For each month a person delays receiving benefits beyond full retirement age, the benefit amount increases by approximately 8% until the age of 70.
2.
Spousal Benefit Increase for Surviving Spouses
Surviving spouses may also be eligible for a spousal benefit increase after the deceased spouse’s full retirement age. This increase is based on the deceased spouse’s earnings record and is designed to provide financial support to the surviving spouse.
Considerations for Retirement Planning
Understanding how spousal benefits increase after full retirement age is essential for retirement planning. Couples should consider the following factors when making decisions about when to start receiving benefits:
–
Individual Work Earnings
– Evaluate the individual work earnings of both spouses to determine the highest benefit amount.
–
Retirement Age
– Consider the age at which each spouse plans to retire and when they wish to start receiving benefits.
–
Health Considerations
– Take into account the health of both spouses, as starting benefits early may be necessary if one spouse is in poor health.
In conclusion, social security spousal benefits do increase after full retirement age, providing married individuals with the opportunity to maximize their financial security in retirement. By understanding the factors that affect these benefits and planning accordingly, couples can make informed decisions that align with their retirement goals.
