In order to qualify for a full Social Security benefit, you have to have worked 40 quarters, which equates to 10 years, earning a minimum of at least $1,640 per quarter. However, what if you elected to stay home, raise your kids and never worked for 40 quarters? Or even if you got your 40 quarters in, what if you didn’t earn enough income to get much of a benefit. Can you still receive Social Security as a stay-at-home mom or dad? The good news is you can.
If you are a married person with little to no earnings history, you can receive a benefit up to half of your spouse’s Social Security. More specifically, you receive half of your spouse’s “primary insurance amount,” which is the benefit they receive at their Social Security full retirement age, which right now is age 66 or 67 for most people.
When you receive half of your spouse’s Social Security, this is known as the "spousal benefit."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
There are a few rules and restrictions to keep in mind if you want to claim this benefit:
- You should take the greater of your own Social Security benefit, or half of your spouse’s.
- You must be at least 62 years of age and, if you apply before your full retirement age, the benefit will be reduced. For example, if your full retirement age is 66, and you take it at 62, you receive 70% of the amount you’re entitled to at age 66.
- As of May 1, 2016, your spouse has to be receiving their Social Security in order for you to take the spousal benefit, unless they were grandfathered in under the old “file and suspend” rule.
- Generally, you must be married for one year before you can get spouse’s benefits. However, if you are the parent of your spouse’s child, the one-year rule does not apply.
- Only one spouse in a marriage can claim this spousal benefit.
Keep in mind, if you are still working and you take a spousal benefit before your full retirement age, part or all of your benefits may be withheld depending on how much money you make. If you make more than $21,240 per year, then for every $2 you earn above this threshold, $1 in benefits is withheld. You don’t lose these withheld benefits. They will be added into your monthly benefit later when you stop working or reach full retirement age. At that time, your benefit is recalculated and includes the withheld benefits to make the overall benefit higher.
Also, if you are divorced, you can receive a spousal benefit as long as the marriage lasted 10 years. You must be at least 62 years of age, you can't be married at the time you apply, and your ex-spouse must be at least 62.
The big difference in the case of a divorce is that your ex-spouse doesn't have to file for his or her benefit in order for you to receive the spousal benefit as long as you have been divorced for at least two years.
Finally, in a case where you are a widow, you can actually claim the deceased spouse’s benefit as early as age 60 as long as the marriage lasted nine months, and instead of receiving half of your deceased spouse’s Social Security, you will receive 100% of the deceased spouse's earned benefit if you file at your full retirement age. Keep in mind this survivors benefit will be reduced if you apply early.
-
The '8-Year Rule of Social Security' — A Retirement RuleThe '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Should I Buy Stocks or Should I Buy Bonds Right Now?Generally speaking, stocks provide reasonable growth while bonds provide stable income. Each play important roles in diversified portfolios.
-
You Were Planning to Retire This Year: Should You Go Ahead?If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get ItThe Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning PlaybookConsider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.
-
Your Home + Your IRA = Your Long-Term Care SolutionIf you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
I'm a Financial Planner: Retirees Should Never Do These Four Things in a RecessionRecessions are scary business, especially for retirees. They can scare even the most prepared folks into making bad moves — like these.
-
A Retirement Planner's Advice for Taking the Guesswork Out of Income PlanningOnce you've saved for retirement, you'll need your nest egg to support you for as many as 30 years. For that, you need a clear income strategy, not guesswork.
-
Why Smart Retirees Are Ditching Traditional Financial PlansFinancial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around YouWhile thinking about succession planning might feel like anticipating a landslide (here's to you, Fleetwood Mac), there are strategies you can implement to manage the uncertainty and the transition.
