Pension in the USA and marriage: all important nuances and how to receive benefits for a spouse

The benefits of marriage are not limited to love and warmth. In some situations, marriage can lead to an increase in retirement benefits. If you have been married for at least 10 years, these benefits will apply even if you divorce. But the rules for the payment of marriage pensions are quite complex. Seven nuances about retirement in the United States that all married couples should know, published the publication The Penny Hoarder.

You will not automatically receive more retirement benefits just because you are married. Work experience plays the main role in the amount of the pension. But if your seniority is limited and you are married to someone who earns significantly more than you, you can get a larger pension by requesting spouse allowance.

This is how it works.

1. You can receive up to 50% of your spouse's benefit

The maximum spousal benefit is 50% of your spouse's principal pension. The principal amount of the pension is the benefit that a person can claim upon reaching the full retirement age, which is 67 for anyone born in 1960 or later.

If you receive Spouse Benefit before you reach full retirement age, you will receive less than 50%. For example, if you start receiving benefits at 62 - the earliest age at which you can receive a pension - you will receive only 32,5% of your spouse's principal pension.

2. You cannot qualify for two benefits

Sorry, but the benefits of marriage are not dual benefits. Social Security will provide you with the larger of the two pension options. Your own allowance or 50% of your spouse's allowance, but not both.

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Formally, Social Security will primarily use your own seniority to calculate your pension amount. They will then leverage your spouse's seniority and offer you the option with the maximum benefit.

3. There are no additional loans for spouses for waiting after full retirement age

If you register with social security, you will receive the maximum benefit at age 70. This is because every year you defer Social Security, you increase your checks by 8%.

But if you are receiving spousal benefits, you cannot receive deferred retirement benefits. Your benefits will increase to a maximum when you reach full retirement age (67) and will not increase further.

4. You cannot claim social disability benefits for your spouse

You can only apply for Social Security Disability Benefits (SSDI) if you have contributed to the fund yourself and have a medical diagnosis. You cannot get disability benefits from someone else's card, including your spouse.

5. Divorce? You may still be able to get your spouse's benefit

If you have been married for at least 10 years and have been divorced for at least two years, you can apply for your ex-spouse's Social Security. The same matrimonial rules apply: the maximum allowance will be 50% of the original amount of his pension. You will receive a lower amount if you apply before you reach full retirement age.

Your ex-spouse must be at least 62 years old to apply. Your decision will not affect your ex-spouse in any way. Likewise, if someone you divorced receives social security benefits based on your seniority, your benefits will not be reduced.

6. If you are remarried, you cannot qualify for your ex-spouse's benefits

After you marry another person, you are not allowed to qualify for Social Security for your ex-spouse's seniority. But after you have been married for a year, you may be eligible for your current spouse's seniority benefit.

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If you have had more than one marriage that lasted 10 years or more and ended in divorce, Social Security will look at each of them and give you the greatest benefit.

7. The survivor's allowance is up to 100% of the deceased spouse's allowance

If your spouse dies before you, you can qualify for up to 100% of their Social Security through survivor's benefitif you wait until your full retirement age. You can start getting survivor benefits at age 60 (or 50 if you are disabled), but you get less. These rules also apply to former spouses, provided that the marriage lasted 10 years. As with spousal benefits, you get whichever is greater. Your own or survivor's benefit, but not both.