How Marriage and Divorce Can Affect Your Social Security Benefits
Retirement is a time that many people look forward to, and for most, their Social Security benefits play a crucial role in ensuring financial security during those years. However, what many individuals may not realize is that marriage and divorce can have a significant impact on their Social Security benefits. In this article, we will explore how these life events can affect your benefits and what you need to know to make informed decisions.
For married couples, there are several factors to consider when it comes to Social Security benefits. First and foremost, both spouses can start drawing on their benefits once they reach the age of 62. However, if they wait until the age of 70, their benefits will increase significantly. The combined benefits of both spouses can make retirement much more comfortable than relying on a single income source.
In the past, married couples had the option to switch between their own benefits and their spouse’s benefits. This strategy allowed them to maximize their benefits by claiming the spousal benefit and then waiting until the age of 70 to claim their own. Unfortunately, this option is no longer available unless you turn 70 before January 1, 2024. Under the new rules, a spouse can only receive up to 50 percent of the primary spouse’s benefit, but the higher-earning spouse must already be receiving benefits.
It’s important to note that claiming spousal benefits before reaching full retirement age permanently reduces your benefits. This reduction can have long-term consequences on your financial stability during retirement. Therefore, it’s crucial to carefully consider the timing of claiming benefits to ensure you receive the maximum possible amount.
Childcare also plays a significant role in Social Security benefits for married couples. If a spouse cares for a child under the age of 16 or is disabled, they can receive a 50 percent spousal benefit. The benefit will continue until the child turns 16, unless the child is disabled. In cases where the spouse caring for the child would receive a higher benefit based on their own work record, they will receive the higher amount.
Divorced individuals may also be eligible for spousal benefits, but there are specific rules to follow. First, the marriage must have lasted for at least ten years. If you have had multiple marriages lasting ten years or more, Social Security will examine each record and provide you with the highest earner’s spousal benefit. Additionally, you cannot have remarried to claim benefits from a previous marriage. However, if the spouse on which you are claiming benefits has remarried, it will not affect your eligibility.
To be eligible for spousal benefits as a divorced individual, your ex-spouse must be receiving Social Security benefits. If your ex-spouse was born on or after January 2, 1954, and applies for Social Security benefits, you will receive the higher of the spousal benefit or your own benefits based on your work record. It’s crucial to consider the timing of claiming benefits as early claiming will result in a permanent reduction in benefits.
Non-citizen divorcees face similar rules as citizens when it comes to Social Security benefits. However, there are a few additional requirements. In addition to being at least 62 years old, not remarried, and being married for at least ten years, non-citizen divorcees must also be living in the United States. If they leave the country, they will lose their benefits after six months and only regain them after returning to the United States and living here for 30 days.
If your ex-spouse is old enough but has not yet claimed Social Security, you must have been divorced for at least two years to be eligible for spousal benefits as a non-citizen divorcee. Additionally, if you live in a country that has signed an international Social Security agreement with the United States, you may qualify for benefits.
It’s important to remember that Social Security benefits are available to individuals in various marriage and divorce circumstances, and in some cases, children may also be eligible. If you have any uncertainty or questions regarding your eligibility, it is highly recommended to speak with a Social Security representative who can provide personalized guidance.
In conclusion, marriage and divorce can have a significant impact on your Social Security benefits. Whether you are married, divorced, or single, understanding the rules and regulations surrounding these life events is crucial for maximizing your benefits and ensuring a comfortable retirement. By taking the time to educate yourself and make informed decisions, you can secure your financial future and enjoy your retirement years to the fullest.
