The Upside Of Receiving A Spousal Benefit Versus Your Own Social Security

Social Security payouts are a lifeline for millions of seniors across the United States. Around 67 million people collect Social Security benefits, radically transforming the financial picture for many. With an average monthly figure of $1,920 (via the Social Security Administration snapshot as of September 2024) before the cost-of-living adjustment for 2025, this resource is tremendously valuable in delivering a comfortable retirement lifestyle, especially for those who clocked in as lower earners throughout their career.

Social Security benefits are calculated through an averaging of your highest 35 years of salaried earnings. You must also earn 40 "credits" to become eligible to receive benefits, with one credit being awarded for every $1,730 (in 2024). A worker can earn four credits per year, meaning if you max out every year ($6,920 in 2024), you'll become eligible to receive benefits after 10 years of consistent employment. Spousal benefits are a little different though.

You don't need anything personally aside from a marriage to be eligible to receive spousal benefits. They're calculated based on your partner's Social Security record (meaning your spouse needs to have earned those 40 credits). There are a few important reasons to consider your spousal benefit value, starting with their comparison to an individual Social Security benefit.

The first thing to note about spousal benefits versus standard Social Security checks is that the Social Security Administration will take it upon itself to identify the higher benefit value for you; SSA will then provide you with the best benefit. This is great news for all recipients, but particularly valuable to those who aren't generally taking an active role in their financial planning (perhaps relying on support from their spouse or a professional financial adviser instead).

The purpose of the spousal benefit — a different flavor of Social Security checks that nearly 2 million Americans draw instead of their own standard benefit — is to assist lower earners to enjoy their retirement lifestyle. While certainly not limited to "housewives," the spousal benefit is particularly valuable to women (or men, although societal data points much more firmly toward women making this sacrifice; via Pew Research Center, The Atlantic, and others) who opted to give up their career and instead care for their children.

In households with a single working parent and another that cares for the young ones, the two partners' Social Security contributions will ultimately end up in wildly different places. A parent that leaves the workforce to care for children might not even reach the 40 credits required to receive their own benefit. Spousal benefit is calculated based on your other half's benefit amount, not your own. The average monthly payout is ~$910, and can make a big difference in the household income of a partnership that saw inequitable earnings figures for whatever reason.

A spousal benefit isn't just an alternative to standard Social Security checks. It goes beyond this utility and offers a benefit for surviving spouses when a partner dies, too. In the same way that spousal benefits are based entirely on the other person's earnings and Social Security record, survivors benefits don't rely on the survivor's income history. SSA notes that children and dependent parents can also benefit from this part of the program. As well, (morbidly) the younger a person dies the fewer credits they must earn to grant eligibility to those they leave behind — although 10 years of work remains the maximum requirement.

Survivors benefits can begin earlier than retirement age if the remaining spouse is caring for a child under the age of 16, or a child with a disability, although in many cases this benefit will kick in at or around full retirement age in the same way that typical Social Security benefits are utilized. Whether the benefit is paid out as a spousal or survivors benefit, there is a reduction in value for taking benefits early, but it can't be increased past a payout rate of 100% like a standard benefit.

In the event that you lose your spouse before reaching retirement age, you might consider applying for survivors benefits when you turn 60 and then continuing to work, delaying your own Social Security benefits until you arrive at the max payout figure a decade later (124% at 70). Tragedy sometimes creates opportunity, and in the case of the Social Security Administration's policy on surviving spouses it's clear that the federal government has a sort of soft spot.

It's important to remember that you can only claim one benefit at a time, even if you're eligible to receive one of multiple options. The Social Security Administration will automatically give you the largest benefit you're entitled to; however, delaying the start of one (or more) benefit type(s) can create the effect of guiding these benefits in a direction that best suits your plan — rather than allowing the natural process of SSA's selection to determine your payout figure.

Allowing surviving spouses to continue delaying their own start date can help maximize their retirement income while also providing a financial supplement to help them through the years that come before, sadly without their partner. If you're in a position to delay taking the largest benefits available to you, utilizing a survivor benefit allows you to continue working, and waiting, to increase your own payout figure. This can round out a retirement strategy and certainly brings something of a silver lining into an otherwise dismal situation.