Quick Read
Spousal Social Security benefits cap at 50% of the higher-earning spouse’s full retirement age benefit, averaging just $986 per month, or $11,830 per year.
Unlike standard retirement benefits, spousal benefits earn no delayed retirement credits, so waiting past full retirement age provides no payment boost.
Retirees relying solely on spousal benefits may need part-time work or substantial savings, as $986 per month makes covering basic expenses extremely difficult.
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Social Security serves as a financial lifeline for millions of retired Americans today. But if you’re planning to retire on Social Security alone, you may want to rethink that idea.
The average monthly Social Security benefit for retirees today is about $2,084 per month. On an annual basis, that amounts to roughly $25,000 per year.
But some Social Security recipients get a lot less money than that. Here’s why one group averages less than $12,000 per year.
Spousal benefits have a maximum value
If you don’t qualify for Social Security benefits based on your own earnings record, or you earned very low wages throughout your time in the workforce, you may be eligible to get paid spousal benefits. This holds true if you’re married or divorced but meet certain criteria.
Spousal benefits from Social Security can be very helpful to retirees who don’t have much else in the way of income. But they’re also not the most generous.
The problem is that spousal benefits max out at 50% of the higher-earning spouse’s primary insurance amount, which is the benefit they’re eligible for at full retirement age (FRA).
If your spouse’s benefit at FRA is $2,000, that means your spousal benefit will be worth $1,000, provided you wait until your own FRA to file. If you claim spousal benefits early, they’ll be reduced.
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Furthermore, when you’re claiming Social Security based on your own earnings record, you can accrue delayed retirement credits for waiting. Each year you delay your claim past your FRA boosts your monthly checks by 8%.
But delayed retirement credits do not apply to spousal benefits. Rather, they max out at 50% of your spouse’s FRA benefit.
While the average retirement benefit paid by Social Security today is around $2,084, the average spousal benefit is only about $986. On an annual basis, that’s about $11,830 in income.
Now that may be enough if there’s other income to access, like savings in an IRA, a pension, or an inheritance. But as hard as it is to retire on Social Security alone, retiring on spousal benefits alone may be exponentially more difficult.
Know what to expect from Social Security
Whether you’re claiming Social Security based on your own earnings record or as a spousal benefit recipient, it’s important to know what to expect. It’s also important to have realistic expectations as to the amount of income Social Security will provide relative to your retirement expenses.
If you’re looking at only spousal benefits for retirement income (say, because you’re divorced), you may need to be willing to live extremely frugally or work part-time to supplement those Social Security checks.
Of course, just because the average spousal benefit today is $986 doesn’t mean that’s what you’ll collect. If your spouse was a very high earner and is in line for Social Security’s maximum benefit or something close, your monthly checks may be much higher.
For example, say your spouse qualifies for $4,000 a month in Social Security at FRA. Your spousal benefit could be worth up to $2,000, which buys you more options.
But all told, living on just Social Security is difficult, whether it’s a primary benefit or a spousal benefit. Knowing that ahead of retirement could be your ticket to coming up with a reasonable plan so you’re able to afford your basic expenses and maintain a decent standard of living.
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