A retired couple is evaluating whether a spousal Social Security benefit could increase their monthly household income [1].
The decision highlights the complexities of the U.S. retirement system, particularly for spouses whose career paths led to lower individual contributions.
Tom, 79, and his wife Karen, 78, are reviewing their options regarding Karen's monthly benefit [4]. Karen currently receives $900 per month from Social Security [1]. This amount is lower than average because of her previous employment history.
"She was a teacher at a school district, so didn't put much into Social Security," Tom said [1].
The couple is considering a strategy that involves claiming a spousal benefit. According to Tom, this move could add approximately $350 per month to the current payment [3].
Under Social Security rules, a spouse may be eligible for a benefit based on their partner's earnings record if it is higher than their own. The dossier notes that the earliest age a person can claim such a benefit is 62 [1]. However, the couple is currently 78 and 79 years old [4].
"I just realized we could claim spousal benefits and get $350 more per month," Tom said [3].
The couple's situation reflects a common challenge for those who worked in public sectors, such as education, where pension plans often replace Social Security contributions. This can leave the individual with a minimal personal benefit upon retirement. By claiming a spousal benefit, the lower-earning spouse can potentially bridge the gap between their own benefit and a percentage of their spouse's benefit.
“"She was a teacher at a school district, so didn't put much into Social Security."”
This case illustrates the 'spousal benefit' mechanism designed to protect dependents of higher-earning workers. For individuals who spent their careers in the public sector without paying into Social Security, these benefits serve as a critical financial safety net to maintain a standard of living during retirement.
