By We have all heard about Social Security and the benefits that it bears for citizens who are eligible for it. But, we are not absolutely sure about the workings of Social Security and the benefits it has on the spouses of the individuals insured by the federal program.
In this article, we will be discussing the concept of Social Security and the benefits it has for spouses enrolled in the program.
What Is Social Security?
Social Security is a federal program within the United States which provides retirement benefits and disability income to qualified individuals and their spouses, children, and survivors.
Social Security is widely used as the term “Old-Age, Survivors, and Disability Insurance (OASDI)” program in the United States. This federal program is administered by the federal agency of Social Security Administration (SSA). This program is widely recognized for its retirement benefits but also tends to provide survivor benefits and income for workers who have become disabled.
Fun Fact!
Approximately 67 million Americans have been calculated to collect the benefits of this scheme in 2023.
How Does Social Security Work?
Social Security is an insurance program of the federal government. Workers tend to pay into the program generally through payroll withholding from their employment. Self-employed workers tend to pay for Social Security taxes through payment of federal tax returns.
Workers have the capacity to earn upto four credits each year. For every $1,510 earned in 2022, one credit is granted upto $6,040, or four credits have been achieved. This means you will have $1,640 up to $6,560 in 2023.
The money that is collected through tax is divided into two kinds of Social Security funds, which are “Old-Age and Survivors Insurance Trust Fund (OASI)” for retirees. Along with the “Disability Insurance Trust Fund (DI)” for disability beneficiaries. These two funds are used for the payment of benefits to individuals who are eligible for the program. The money that is not spent tends to remain within the trust funds.
A board of trustees tends to oversee the financial operations of these two Social Security trust funds. Four out of the six members are secretaries of the Departments of Treasury, Labor, Health, and Human Services, along with the commissioner of Social Security. The other two members are public representatives appointed by the president and confirmed by the Senate.
Medicare is a venture included within the Social Security program for US citizens aged 65 and older. Some individuals might also be eligible for Medicare benefits due to their disabilities. This is also supported through the process of payroll withholding; the money collected goes into a third-party payroll withholding. This is managed by the Centers for Medicare & Medicaid Services (CMS).
Social Security provides benefits to retirees, their survivors, and workers who have become disabled.
Fun Fact!
Spouses and ex-spouses might also be eligible for benefits based on the earnings recorded by their partners or their ex-partners.
Social Security Benefits For Spouses
If you are eligible for Social Security spousal benefits, the amount you shall be receiving depends on a variety of factors. These include your age, the amount of your spouse’s benefit, and whether you have other retirement benefits accessible to you.
Who Is Eligible For Social Security Benefits For Spouses?
Anyone whose spouse, ex-spouse, or deceased spouse was or is eligible for benefits. Additionally, once you have reached the age of eligibility, you shall be eligible for receiving Social Security benefits.
Qualifications For Receiving Social Security Benefits For Spouses
If your spouse has filed for Social Security benefits, you can also collect benefits based on your spouse’s work record. The qualifications for receiving spousal benefits of social security include:
- You are of the age of 62.
- In Spite of your age, you are taking care of a child who is entitled to receive benefits on your spouse’s record and is under the age of 16 or is disabled.
When you are applying for spousal benefits, you will also be applying for benefits associated with your own work history. If you are eligible for benefits based on your own earnings, and that benefit amount is higher than your spousal benefit, then that is what you will get. If it is lower, then you will receive the spousal benefit.
How To Calculate My Spousal Benefits Associated With Social Security?
Spousal benefits are based on how much the other spouse will be receiving if that individual begins collecting the benefits at the full or normal retirement age. The Social Security Administration has an online calculator that can show you the percentage of your spouse’s benefits you are eligible for depending on your age and when you are about to begin receiving the benefits.
A gist of that calculation is: you are eligible for half of your spouse’s benefit amount as long as you wait until your full retirement age to apply. The earlier you will file for spousal benefits, the less amount you shall get.
Frequently Asked Questions (FAQs)
Here are some of the frequently asked questions related to spousal benefits related to social security.
A: Not yet. The percentage of your spouse’s Social Security that you will receive starts at 32.5% at the age of 62 and gradually increases to 50% at your full retirement age of 66 or 67, which depends on your year of birth. The amount is based on your spouse’s benefits at their full retirement age.
A: The maximum spousal benefit is 50% of the total amount that the spouse is eligible to receive at full retirement age. But that is a cap. If your spouse delays retiring till the age of 70, the spouse will be getting more, but you will not.
Final Thoughts
Social Security is a vital retirement plan that is provided to all eligible individuals within the US. Due to this, it is very crucial to effectively have a fair idea about the amount one can receive upon reaching retirement age.
It is advised that you take advice from an experienced employment lawyer to have a fair understanding of social security benefits for spouses.
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