How Getting Married Affects Your Social Security Benefits

An older couple celebrate at their wedding. — (Image credit: Getty Images)

Getting married is a major life event. It requires a lot of planning that goes beyond the ceremony, especially when it comes to your finances. In addition to making sure you and your partner have similar spending habits and financial goals, you may want to consider planning for your lives in retirement. This may seem premature, but in the world of personal finance, it’s never too early to plan for your retirement.

An important part of planning is knowing what benefits you’ll have once you clock out from work for good.

You’re probably aware that marriage brings certain financial benefits. For some, this could mean tax breaks or better access to health insurance, but it could also lead to bigger Social Security benefits. To qualify for Social Security benefits you must be at least 62 and have worked long enough to earn 40 credits, but there’s an exemption for married couples. The Social Security Administration provides benefits to both spouses, regardless of who brought home a paycheck.

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This means a stay-at-home parent is eligible for benefits, even if they’ve never entered the workforce, but some other requirements must be met.

Generally speaking, you must be married for at least a year to qualify for spousal benefits. You must also be at least 62 years old, unless you’re caring for a biological child under 16, or a child who is already receiving Social Security disability benefits. However, your spouse must file for Social Security before you can receive spousal benefits regardless of age.

As for the actual payment, a married person can collect benefits based on their earnings or receive a maximum of 50% of their spouse’s Social Security benefits. The government will calculate both scenarios, basing your payment on whichever amount is greater.

Situations where your spousal benefit may be reduced

Now there are some caveats to spousal benefits. If you file to start taking your benefits before your full retirement age, your spousal benefit will be reduced. However, it’s important to note that simply claiming spousal benefits will not impact your spouse’s checks. Another caveat to this system applies to certain workers. If you receive a pension from a government job and you’re not required to pay into Social Security while working there, your benefits and your spouse’s benefits will be reduced by two-thirds of the amount of your pension.

Whether you’re planning a wedding or are a newlywed couple, it’s important to explore all the options you have at your disposal when planning for life in retirement. Social Security is a great benefit to have. But to live comfortably, you must start saving for your retirement as soon as possible. Consider talking with your spouse about opening an IRA or high-yield savings account. Also, check out employer-sponsored retirement accounts.

Taking the time to kickstart your retirement plan now will save you a lot of stress in the future.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Patrick M. Simasko is an elder law attorney and financial adviser at Simasko Law and Simasko Financial, specializing in elder law and wealth preservation. He’s also an Elder Law Professor at Michigan State University School of Law. His self-effacing character, style and ability have garnered him prominence and recognition throughout the metro Detroit area as well as the entire state.