Ex-spouse Social Security benefits can be a positive boost to your income.
Knowing who qualifies as well as how things like timing and remarriage affect your potential benefits will help you plan ahead.
Don't forget about survivor benefits as well.
I recently received a question about ex-spouse Social Security benefits from a 60-year-old divorced woman who is now trying to plan ahead for her own retirement. She actually had several good questions about how ex-spouse benefits work that focused on some important points, so I decided to include them all here.
Social Security benefits based on your ex-spouse's record can be a positive boost to your income. And they apply equally to men and women, so if you think you may be eligible, it's definitely worth exploring. Here are some key questions and answers to get you started.
Who qualifies for ex-spouse Social Security benefits?
Whether you qualify for an ex-spouse benefit depends on your age, the length of your marriage and your current marital status. In a nutshell:
- You must be at least 62 years old.
- You must have been married for a minimum of 10 years.
- If your ex hasn't yet filed for benefits but is eligible, you must have been divorced for two years.
- You must be currently unmarried.
- If you did remarry, that marriage must have ended.
- The benefit based on your own work record must be less than the spousal benefit from your ex.
- If you have more than one ex-spouse (with a minimum 10 year marriage), you can collect on either spouse's record, but not both.
If you meet these qualifications, that's step one. But it doesn't answer all the potential questions. Read on.
How do I find out what my ex-spouse's retirement benefit will be?
Other than asking your ex directly, you have no way of knowing how much his or her Social Security benefit will be. The Social Security Administration (SSA) can't tell you anything in advance. So if you're not communicating, you 'll have to wait until you file to find out.
The good news is that your ex doesn't have to be involved for you to collect a spousal benefit. In fact, he or she doesn't even have to have filed for benefits. As long as your ex is 62, and therefore eligible for Social Security, you're also potentially eligible for a spousal benefit.
How much will I get?
Your own age plays a part in how much that benefit will be. Once you're at your full retirement age or FRA (66 for those born between 1943 and 1954), you're entitled to 50 percent of your ex's full primary insurance amount (PIA), which is the benefit he or she would get at their FRA. So if your ex's PIA were estimated to be $1,600 and you were at full retirement age, you'd collect $800/month.
But here's where timing is an issue. Because if you collect early—before your FRA— there's a penalty in the form of a reduction of between 5/12 and 25/36 of 1 percent for every month you're ahead of your FRA. If you collect at age 62, that can amount to a hefty 25-30 percent permanent reduction depending on your birthdate.
What happens if I have earned Social Security benefits on my own work record?
If you are eligible for retirement benefits on your own record and divorced spouse’s benefits, Social Security will pay your retirement benefit first. If the benefit on your ex-spouse’s record is higher, you will get an additional amount on your ex-spouse’s record so that the combination of benefits equals that higher amount.
Can I take a spousal benefit and switch to my own benefit later?
With one exception, the option to file for a spousal or ex-spouse benefit only and switch to your own benefit later no longer exists. In general, when you file for any type of spousal benefit, the IRS considers that you are filing for both your own benefit and the spousal benefit at the same time. If the spousal benefit is more, you'll receive that greater amount.
The exception is for people who were born before January 2, 1954. If your birthday falls before that date and you're at your full retirement age, you can still choose to restrict your benefit to the ex-spouse benefit only and switch to your own benefit later—letting your own benefit grow. If you're lucky enough to qualify for the exception, every year you wait to collect on your own work record, you'll earn delayed retirement credits of 8 percent until age 70. That is a hefty bonus.
If I take a spousal benefit will it affect my ex's retirement?
Whatever your relationship with your ex, it may be good to know that taking a spousal benefit in no way affects how much he or she will get at retirement. Not only that, it has no affect on what anyone else could collect based on your ex's record.
What if I remarry?
The marriage rules are a double-edged sword of sorts. In general, if you remarry you no longer qualify for ex-spouse benefits unless that new marriage ends by death, divorce or annulment. On the other side, it doesn't matter whether or not your ex remarries. You're still eligible for ex-spouse benefits as long as you're single.
Do I still get survivors' benefits?
Yes—with a couple of caveats. An ex-spouse is entitled to the same survivors' benefits as a widow or widower as long as the marriage lasted 10 years or more. Marital status can be a factor if you're under age sixty. But if you remarry after age 60, you can collect survivors' benefits whether you're married or single. Plus, if you've survived more than one spouse, you can choose to collect on the one with the higher benefit—and even switch between them if, for instance, a spouse with a lower benefit dies before a spouse with a higher benefit.
This can seem like a lot of details, but ssa.gov does a pretty good job of explaining it. However, if you still have questions, you could look for a financial advisor who specializes in Social Security issues. If you qualify for ex-spouse benefits, by all means take advantage of them.
Have a personal finance question? Email us at email@example.com. Carrie cannot respond to questions directly, but your topic may be considered for a future article. For Schwab account questions and general inquiries, contact Schwab.