8 things you need to know about the Social Security spousal benefit

Want to get more out of things need know about without the guesswork? Below we walk through the essentials in plain language, with practical steps you can use right away.

Key Takeaways

• Are you a stay-at-home mom (SAHM) or dad with a working spouse or partner?
• But that doesn’t mean their retirement has to be compromised.
• Married people with a scant earnings history , or even no earnings history at all , can qualify for what’s called the spousal upside.
• There are, of course, a few caveats to remember.

How Things Need Know About Really Works

Then you require to know how to upside from a Social Security provision that not too numerous people are familiar with. : 10 aspects to know about Social Security in 2017 Here’s what you require to know about the spousal upside When a spouse decides to stay home to raise children, their income can be severely limited. Worth noting: basically, the Social Security Administration lets homemakers claim a retirement upside that’s equal to half of the Social Security upside their spouse would receive at full retirement age (FRA).

Age counts You must be 62. Yet FRA is 66 or 67 for most people.

Getting the Most From Things Need Know About

More importantly, so if you pick to take your spousal upside at 62, you’ll only get 70% of the upside you would get at your FRA of either 66 or 67. Two’s a crowd Only one of you in a couple can claim the spousal upside.

That is, you can’t claim your own Social Security upside and half of your spouse’s. Your spouse’s work status matters A new policy went into effect May 1, 2016 that states your spouse must be receiving their Social Security upside in order for you to take the spousal upside.

Tips That Make a Difference

Remember that that’s different than in past years, when the “file and suspend” approach was in full effect. So unless you’re grandfathered in under those old rules, your spouse must be taking his or her own upsides for you to claim the spousal upside.

When you tied the knot matters too You must be married for at least 12 months to claim the spousal upside. Don’t earn too much or you’ll lose out , at least temporarily If you’re still working and you elect to take the spousal upside before your FRA, you may have to settle for less  , at least for now.

Common Mistakes to Avoid

As a rule, here’s how this works: You’re penalized with a $1 reduction in upsides for each $2 you earn above a limit of $16,920 annually. Now for the solid news: Any money that’s taken away will be repaid back to you via your monthly upside when you either stop working or reach your FRA.

Divorcees can claim the spousal upside As long as your marriage lasted 10 years and you’ve been divorced for two years, you too can claim the spousal upside. Here are a few additional aspects to remember: Both you and your ex-spouse must be at least 62.

Is Things Need Know About Worth It?

In short, and if you’re married again when you apply, you will be denied the spousal upside from your prior marriage. Widows and widowers can claim on their late spouse’s upside If you’re 60 and your marriage to your late spouse lasted at least nine months, then the following applies to you: Instead of receiving half of your deceased spouse’s Social Security, you can get 100% of their earned upside when you file at your FRA.

This is a rare example of a time when you claim a Social Security upside of any kind before 62! : $5 savings challenge: Follow this straightforward plan to save thousands of dollars How to file your taxes for free regardless of your income.

Frequently Asked Questions

How can I save money on things need know about?

Compare prices across a few retailers, look for active coupon codes, and time bigger buys around sales events. Worth noting: basically, the Social Security Administration lets homemakers claim a retirement upside that’s equal to half of the Social Security upside their spouse would receive at full retirement age (FRA).

Is it worth shopping around for things need know about?

Usually yes. Age counts You must be 62.

What should I check before buying?

Read the terms, confirm any code still works, and factor in shipping or returns. Yet FRA is 66 or 67 for most people.

Smart Ways to Save More on Things Need Know About

• Pair cashback with a coupon so you save twice on the same order.
• Stack a coupon code with an existing sale whenever the store allows it.
• Sign up for the retailer newsletter to catch first time and seasonal discounts.
• Compare the final price including shipping, not just the headline number.
• Check for student, military, or first order offers you may qualify for.

Final Thoughts

Put these ideas to work and things need know about gets a lot less expensive. Bookmark this page, check back for fresh deals, and let the savings do the talking.

Originally published at clark.com.